Table Of Contents:

• Chapter 1: An Introduction to Accounting Theory
• Accounting Theory and Policy Making
• The Role of Measurement in Accounting
• Plan of This Book
• Appendix 1-A: Valuation Systems
• Chapter 2: Accounting Theory and Accounting Research
• Accounting Research and Scientific Method
• Is Accounting an Art or a Science?
• Directions in Accounting Research
• A Scientific Revolution in Accounting?
• Chapter 3: Development of the Institutional Structure of Financial Accounting
• Accounting in the United States Prior to 1930
• Formative Years, 1930-1946
• Postwar Period, 1946-1959
• Modern Period, 1959 to the Present
• Chapter 4: The Economics of Financial Reporting Regulation
• The Case for Unregulated Markets for Accounting Information
• The Case for Regulated Markets for Accounting Information
• Imperfections of Accounting Regulation
• The Regulatory Process
• Economic Consequences of Accounting Policy
• Chapter 5: Postulates, Principles, and Concepts
• Postulates and Principles
• Basic Concepts Underlying Historical Costing
• Equity Theories
• Appendix 5-A: The Basic Postulates of Accounting (ARS 1)
• Appendix 5-B: A Tentative Set of Broad Accounting Principles for Business Enterprises (ARS 3)
• Chapter 6: The Search for Objectives
• ASOBAT
• APB Statement 4
• The Trueblood Committee Report
• SATTA
• User Objectives and User Diversity
• Chapter 7: The FASB’s Conceptual Framework
• The FASB’s Conceptual Framework
• The Conceptual Framework as a Codificational Document
• Empirical Research on the Conceptual Framework
• Assessing the Conceptual Framework
• Chapter 8: Usefulness of Accounting Information to Investors and Creditors
• Earnings, Dividends, and Stock Prices
• Residual Income Models
• Background on Risk and Return
• Introduction to Capital Markets Research in Accounting
• The Value of Accounting Information: Evidence From Return Data
• The Value of Accounting Information: Evidence From Direct Valuation
• Accounting Data and Creditors
• Importance of Earnings Forecasting
• Empirical Research and Standard Setting
• Chapter 9: Uniformity and Disclosure: Some Policy-Making Directions
• What Underlies the Choice Among Accounting Methods?
• Uniformity
• The Usefulness of Accounting Allocations
• Disclosure
• Improving Accounting Standards
• Chapter 10: International Accounting
• National Accounting Differences
• International Harmonization of Accounting Standards
• Chapter 11: The Balance Sheet
• The Relationship Between the Balance Sheet and the Income Statement
• Assets
• Liabilities
• Owners' Equity
• Financial Instruments
• Classification in the Balance Sheet
• Appendix 11-A: A Simple Example of a Weather Derivative
• Chapter 12: The Income Statement
• Income Definitions
• Revenues and Gains
• Expenses and Losses
• Future Events and Accounting Recognition
• Current Operating Versus All-Inclusive Income
• Nonoperating Sections
• Earnings per Share
• Special Subjects Concerning Income Measurement
• Earnings Management
• Income Statement Developments
• Chapter 13: Statement of Cash Flows
• The Statement of Changes in Financial Position
• The Motivation for a Cash Flow Statement
• Requirements of the Cash Flow Statement
• Classification Problems of SFAS No. 95
• Analytical Usefulness of the Cash Flow Statement
• Cash and Funds Flow Research
• Improving the SCF
• Chapter 14: Income Taxes and Financial Accounting
• Income Tax Allocation
• The Asset–Liability Orientation of SFAS No. 109
• Empirical Research on Income Tax Allocation
• International Accounting Standards (IAS)
• Improving Accounting Standards
• Chapter 15: Pensions and Other Postretirement Benefits
• Overview of Pension Plans
• Development of Pension Accounting Standards
• Postretirement Benefits Other Than Pensions
• International Accounting Standards (IAS)
• Improving Accounting Standards
• Appendix 16-A: Illustration of Pension Expense Determination and Actuarial Funding Methods
• Chapter 16: Leases
• The Lease Contract
• The Evolution of Lease Accounting Standards
• FASB and IASB Joint Exposure Draft on Accounting for Leases
• Improving Accounting Standards
• Chapter 17: Intercorporate Equity Investments
• Relevant Circumstances
• Consolidation
• The Equity Method
• The Fair Value Method
• Defining the Reporting Entity
• Translation of Foreign Operations
• IASB Standards
• Improving Accounting Standards
• Appendix 17-A: Special Purpose Entities, Variable Interest Entities, and the Downfall of Enron