DONALD E. KIESO received his bachelor's degree from Aurora University and his doctorate in accounting from the University of Illinois. He has served as chairman of the Department of Accountancy and is currently the KPMG Emeritus Professor of Accountancy at Northern Illinois University. He has public accounting experience with Price Waterhouse & Co. (San Francisco and Chicago) and Arthur Andersen & Co. (Chicago) and research experience with the Research Division of the American Institute of Certified Public Accountants (New York). He has done postdoctorate work as a Visiting Scholar at the University of California at Berkeley and is a recipient of NIU's Teaching Excellence Award and four Golden Apple Teaching Awards. Professor Kieso is the author of other accounting and business books and is a member of the American Accounting Association, the American Institute of Certified Public Accountants, and the Illinois CPA Society.

JERRY J. WEYGANDT is the Arthur Andersen Alumni Emeritus Professor of Accounting at the University of Wisconsin-Madison. He holds a Ph.D. in accounting from the University of Illinois. Articles by Professor Weygandt have appeared in the Accounting Review, Journal of Accounting Research, Accounting Horizons, Journal of Accountancy, and other academic and professional journals. Professor Weygandt is the author of other accounting and financial reporting books and is a member of the American Accounting Association, the American Institute of Certified Public Accountants, and the Wisconsin Society of Certified Public Accountants. He has served on numerous committees of the American Accounting Association and as a member of the editorial board of the Accounting Review; he also has served as President and Secretary-Treasurer of the American Accounting Association. He has served on the FASB task force that examined the reporting issues related to accounting for income taxes and served as a trustee of the Financial Accounting Foundation.

TERRY D. WARFIELD is the PwC Professor in Accounting at the University of Wisconsin-Madison. He received a B.S. and M.B.A. from Indiana University and a Ph.D. in accounting from the University of Iowa. Professor Warfield's area of expertise is financial reporting, and prior to his academic career, he worked for five years in the banking industry. He served as the Academic Accounting Fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission in Washington, D.C. from 1995-1996. Professor Warfield's primary research interests concern financial accounting standards and disclosure policies. He has published scholarly articles in The Accounting Review, Journal of Accounting and Economics, Research in Accounting Regulation, and Accounting Horizons, and he has served on the editorial boards of The Accounting Review, Accounting Horizons, and Issues in Accounting Education.

1 The Environment and Conceptual Framework of Financial Reporting 1-1

2 The Accounting Information System 2-1

3 Income Statement, Related Information, and Revenue Recognition 3-1

4 Statement of Financial Position and Statement of Cash Flows 4-1

5 Accounting and the Time Value of Money 5-1

6 Cash and Receivables 6-1

7 Valuation of Inventories: A Cost- Basis Approach 7-1

8 Inventories: Additional Valuation Issues 8-1

9 Acquisition and Disposition of Property, Plant, and Equipment 9-1

10 Depreciation, Impairments, and Depletion 10-1

11 Intangible Assets 11-1

12 Current Liabilities, Provisions, and Contingencies 12-1

13 Non-Current Liabilities 13-1

14 Equity 14-1

15 Dilutive Securities and Earnings per Share 15-1

16 Investments 16-1

17 Revenue Recognition 17-1

18 Accounting for Income Taxes 18-1

19 Accounting for Pensions and Postretirement Benefits 19-1

20 Accounting for Leases 20-1

21 Accounting Changes and Error Analysis 21-1

22 Statement of Cash Flows 22-1

23 Presentation and Disclosure in Financial Reporting 23-1

Appendix A Specimen Financial Statements: Marks and Spencer Group plc A- 1

Appendix B Specimen Financial Statements: adidas AG B- 1

Appendix C Specimen Financial Statements: Puma Group C- 1

Appendix D Environmental, Social, and Governance Reporting D- 1

Company Index I-1

Subject Index I-5