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Accounting Theory
Conceptual Issues in a Political and Economic Environment

Ninth Edition

Other Titles in:
Accounting/Finance

June 2016 | 672 pages | SAGE Publications, Inc

This updated Ninth Edition of Accounting Theory: Conceptual Issues in a Political and Economic Environment continues to be one of the most relevant and comprehensive texts on accounting theory. Authors Harry I. Wolk, James L. Dodd, John J. Rozycki provide a critical overview of accounting as a whole as well as touch on the financial issues in economic and political contexts, providing readers with an understanding of how current United States accounting standards were derived and where we might be headed in the future. Readers will find learning tools such as questions, cases, problems and writing assignments to solidify their understanding of accounting theory and gain new insights into this evolving field.

 
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  

Supplements

Instructor Resource Site

Password-protected Instructor Resources include the following:

  • A Microsoft® Word® test bank provides you with a diverse range of pre-written options as well as the opportunity for editing any question and/or inserting your own personalized questions to effectively assess students’ progress and understanding.
  • Editable, chapter-specific Microsoft® PowerPoint® slides offer you complete flexibility in easily creating a multimedia presentation for your course.
  • An instructor's manual includes chapter highlights, answers to the end-of-chapter questions, case problems, and writing assignments.

Harry Ira Wolk

Harry I. Wolk (1930-2009) held a BS in economics from the Wharton School of the University of Pennsylvania and MBA and PhD degrees from Michigan State University. He was the author or co-author of approximately 25 journal articles, including publications in the Accounting Review, Journal of Accounting Research, Accounting Horizons, and the International Journal of Accounting. He was the lead author of seven editions of Accounting Theory: Conceptual Issues in a Political and Economic Environment. He previously taught at the University of Wisconsin–Milwaukee and was the Aliber Distinguished Professor of Accounting at Drake University, where... More About Author

Jim L. Dodd

James L. Dodd, Professor Emeritus of Accounting at Drake University, holds a BS in accounting from California State University–Fresno, an MBA from the University of South Alabama, and a PhD from the University of Georgia, with a major in accounting and a minor in information systems. Before entering academe, Dr. Dodd worked for 15 years in the shipbuilding, aircraft-engine, and diesel-engine filtration industries. His assignments at Litton, Teledyne, and Cummins included experience in industrial engineering, capital budgeting, profit planning, product pricing, cost accounting, long-range systems planning, and accounting controllerships at... More About Author

John J. Rozycki

John J. Rozycki, Associate Professor of Finance at Drake University, holds a BS in biology from King’s College, an MBA from the University of Scranton, and a PhD from Penn State University, with a major in finance. Before pursuing his doctoral education, Dr. Rozycki worked in the health care planning and telecommunications industries. He teaches corporate finance and equity valuation. His professional interests are in equity and business valuation, corporate capital allocation decisions, financial planning, financing decisions, and financial statement analysis. He is a member of the CFA Institute, the CFA Society of Iowa, the Financial... More About Author

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ISBN: 9781483375021
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