Fundamentals of Advanced Accounting, 4th Edition

Book Preface

For the Instructor

• Instructor’s Resource and Solutions Manual, revised by the text authors, includes the solutions to all discussion questions, end-of-chapter questions, and problems. It provides chapter outlines to assist instructors in preparing for class.
• Test Bank, revised by Ilene Persoff, CW Post Campus/ Long Island University, has been significantly updated.
• EZ Test Computerized Test Bank can be used to make different versions of the same test, change the answer order, edit and add questions, and conduct online testing. Technical support for this software is available at (800) 331-5094 or visit www.mhhe.com/eztest.
• PowerPoint® Presentations, revised by Linda Hajec, Penn State Erie, deliver a complete set of slides covering many of the key concepts presented in each chapter.
• Excel Template Problems and Solutions, revised by Jack Terry of ComSource Associates, Inc., allow students to develop important spreadsheet skills by using Excel templates to solve selected assignments.
• Connect Accounting
ISBN 9780077417345; MHID 0077417348.
• Connect Plus Accounting
ISBN 9780077417369; MHID 0077417364.

For the Student

• Study Guide/Working Papers ISBN 9780077268046; MHID 0077268040. Revised by Sharon O’Reilly, Saint Mary’s University of Minnesota, this combination of study guide and working papers reinforces the book’s key concepts by providing students with chapter outlines, multiple-choice questions, and problems for each chapter in the text. In addition, this paperback contains all forms necessary for completing the end-ofchapter material.
• Self-Grading Multiple-Choice Quizzes (mhhe.com/ hoyle4e) for each chapter are available on the Student Center of the text’s Online Learning Center.
• Excel Template Problems (mhhe.com/hoyle4e) are available on the Student Center of the text’s Online Learning Center. The software includes innovatively designed Excel templates that may be used to solve many complicated problems found in the book. These problems are identified by a logo in the margin.
• PowerPoint Presentations (mhhe.com/hoyle4e) are available on the Student Center of the text’s Online Learning Center. These presentations accompany each chapter of the text and contain the same slides that are available to the instructor.

Assurance of Learning Ready

Assurance of learning is an important element of many accreditation standards. Hoyle 4e is designed specifically to support your assurance of learning initiatives. Each chapter in the book begins with a list of numbered learning objectives that appear throughout the chapter, as well as in the end-of-chapter problems and exercises. Every test bank question is also linked to one of these objectives, in addition to level of difficulty, topic area, Bloom’s Taxonomy level, AACSB, and AICPA skill area. EZ Test, McGraw-Hill’s easy-to-use test bank software, can search the test bank by these and other categories, providing an engine for targeted Assurance of Learning analysis and assessment.

AACSB Statement

The McGraw-Hill Companies is a proud corporate member of AACSB International. Understanding the importance and value of AACSB accreditation, Hoyle 4e has sought to recognize the curricula guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the test bank to the general knowledge and skill guidelines found in the AACSB standards.

The statements contained in Hoyle 4e are provided only as a guide for the users of this text. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While Hoyle 4e and the teaching package make no claim of any specific AACSB qualification or evaluation, we have, within the test bank, labeled selected questions according to the six general knowledge and skills areas.

Brief Contents

About the Authors v
1 The Equity Method of Accounting for Investments 1
2 Consolidation of Financial Information 37
3 Consolidations—Subsequent to the Date of Acquisition 81
4 Consolidated Financial Statements and Outside Ownership 139
5 Consolidated Financial Statements—Intra-Entity Asset Transactions 195
6 Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and
Other Issues 241
7 Foreign Currency Transactions and Hedging Foreign Exchange Risk 293
8 Translation of Foreign Currency Financial Statements 353
9 Partnerships: Formation and Operations 407
10 Partnerships: Termination and Liquidation 443
11 Accounting for State and Local Governments (Part 1) 477
12 Accounting for State and Local Governments (Part 2) 527
INDEX 585