The key strengths of this text are the clear and readable discussions of concepts and the detailed demonstrations of concepts through illustrations and explanations. The many favorable responses to prior editions from both students and instructors confirm our belief that clear presentation and comprehensive illustrations are essential to learning the sophisticated topics in an advanced accounting course. Key features of the Eighth Edition include:

• A building-block approach based on a strong conceptual foundation. For each major topic area, students are provided with a thorough conceptual understanding before advancing to the procedures. The discussion begins with the fundamental concepts and why they are important. The fundamentals are then illustrated, giving students a basic example before progressing. Once the conceptual foundation is established, the complexities are layered gradually in successive steps. The authors developed this methodology through years of teaching advanced accounting. Many adopters have commented favorably on the effectiveness of this approach.
• The use of a continuous case for each major subject-matter area. The comprehensive case of Peerless Products Corporation and its subsidiary, Special Foods Inc., is used throughout the for-profit chapters. For the governmental chapters, the Sol City case has been used to facilitate the development of governmental accounting and reporting concepts and procedures. Using a continuous case provides several benefits. First, students need only become familiar with one set of data and can then move more quickly through the subsequent discussion and illustrations without having to absorb a new set of data. Second, the case adds realism to the study of advanced accounting and permits students to see the effects of each successive step on the financial reports of an entity. Finally, comparing and contrasting alternative methods using a continuous case allows students to evaluate different methods and outcomes more readily.
• Extensive illustrations of key concepts. The book is heavily illustrated with complete, not partial, workpapers, financial statements, and other computations and comparisons useful for demonstrating each topic. The illustrations are cross-referenced to the relevant text discussion. In the consolidations portion of the text, the focus is on the basic equity method of accounting for an investment in a subsidiary, but two other methods—the cost method and the fully adjusted equity method—are fully discussed and illustrated in chapter appendices. Workpaper elimination entries presented in the consolidations chapters are separately identified with an (E) and are shaded to differentiate them clearly from book entries. The extensive use of illustrations makes the learning process more efficient by allowing students to see quickly and readily the applications of the concepts. In addition, the illustrations reinforce understanding of the concepts by demonstrating the effects on the financial statements. In this manner, students understand that the many workpaper procedures typically covered in advanced accounting represent the means to a desired end, not the end itself.
• Comprehensive coverage with significant flexibility. The subject matter of advanced accounting is expanding at an unprecedented rate. New topics are being added, and traditional topics require more extensive coverage. Flexibility is therefore essential in an advanced accounting text. Most one-term courses are unable to cover all the topics included in this text. In recognition of time constraints, this text is structured to provide the most efficient use of the time available. The self-contained units of subject matter allow for substantial flexibility in sequencing the course materials. In addition, individual chapters are organized to allow for going into greater depth on some topics through the use of the "Additional Considerations" sections. Several chapters include appendices containing discussions of alternative accounting procedures or illustrations of procedures or concepts that are of a supplemental nature.
• Contemporary topical coverage. The dynamic business environment requires accountants to continually learn about new types of transactions, new technologies available to the profession, and new requirements and standards for accounting and financial reporting. This textbook integrates the most recent professional standards and includes cases and examples from current practice. For example, the importance in recent years of topics such as the Sarbanes-Oxley Act, special-purpose entities (SPEs), variable interest entities (VIEs), derivatives, fair value reporting, and International Financial Reporting Standards (IFRS) has led to significant coverage of these topics in the current and recent editions of the text. The GASB's recent focus on enhanced financial statement disclosures for governmental entities is discussed and illustrated. Students are presented with an abundance of current information and learning opportunities to see that the topics in their advanced financial accounting courses are a significant part of today's profession of accountancy.
• Extensive end-of-chapter materials. A large number of questions, cases, exercises, and problems at the end of each chapter provide the opportunity to solidify understanding of the chapter material and assess mastery of the subject matter. The end-of-chapter materials progress from simple focused exercises to more complex integrated problems. Cases provide opportunities for extending thought, gaining exposure to different sources of accounting-related information, and applying the course material to real-world situations. These cases include Financial Accounting Research System (FARS) database searches, and Kaplan CPA Review simulations. The American Institute of CPAs has identified five skills to be examined as part of the CPA Exam: ( a ) analysis, ( b ) judgment, ( c ) communication, ( d ) research, and ( e ) understanding. The end-of-chapter materials provide abundant opportunities for students to enhance those skills with realistic and real-world applications of advanced financial accounting topics. Cases and exercises identified with a world globe icon provide special opportunities for students to access real-world data by using electronic databases, Internet search engines, or other inquiry processes to answer the questions presented on the topics in the chapters.