Financial Accounting Theory and Analysis
Text and Cases, 50th Anniversary
15th Edition
Published on 20. October 2025
Book
Paperback/Softback
768 pages
978-1-394-33653-1 (ISBN)
Description
Master Financial Accounting Theory, Standards, and Applications with Expert Insights and Case Studies
Understanding the theoretical foundations of financial accounting is crucial for navigating today's complex and evolving financial landscape. In the fifteenth edition of Financial Accounting Theory and Analysis: Text and Cases, a team of distinguished accounting scholars explores how accounting standards shape financial reporting choices and analyzes the characteristics of firms based on their accounting methods.
With comprehensive discussions on key frameworks and professional standards, students gain a deep understanding of the principles guiding accounting practice. Through a combination of rigorous theoretical analysis, empirical research, and real-world case studies, this leading textbook strengthens students' critical thinking and decision-making skills while providing future professionals with the analytical and ethical foundation needed to succeed in today's global financial environment.
Providing essential knowledge for careers in financial reporting, auditing, and corporate finance, Financial Accounting Theory and Analysis: Text and Cases is ideal for senior undergraduate and graduate courses in Financial Accounting Theory, Advanced Financial Accounting, and Accounting Research.
NEW TO THIS EDITION
Up-to-date coverage of the FASB and IASB Conceptual Frameworks
New sections on sustainability reporting and ESG (Environmental, Social, and Governance) accounting
Revised analyses of all FASB and IASB standards, including recent amendments
New section on financial engineering, special purpose entities, and variable interest entities
New insights on joint ventures, incorporating the latest Accounting Standards Update (ASU)
Enhanced case studies and disclosure examples using current financial statements
Expanded discussion of the FASB Agenda Consultation initiative
Updated international accounting sections to reflect recent IASB changes
New tutorial on using the FASB Accounting Standards Codification for research and application
Expanded test bank with over 300 multiple-choice questions and 250 essay questions for instructors, including 200 entirely new questions
WILEY ADVANTAGE
Prepares students for professional careers by bridging theoretical concepts with practical applications
Provides a comprehensive exploration of accounting theory and its impact on financial reporting
Integrates real-world case studies to enhance critical thinking and application skills
Covers the latest FASB and IASB standards, ensuring up-to-date knowledge of financial regulations
Examines key financial theories such as the efficient markets hypothesis (EMH) and behavioral finance model
Strengthens analytical skills with in-depth discussions on accounting methods and corporate decision-making
Enhances learning with updated financial statement analyses using real-world companies such as Hershey and Tootsie Roll
Supports instructors with a comprehensive Solutions Manual and a wealth of instructor resources for streamlined teaching
Understanding the theoretical foundations of financial accounting is crucial for navigating today's complex and evolving financial landscape. In the fifteenth edition of Financial Accounting Theory and Analysis: Text and Cases, a team of distinguished accounting scholars explores how accounting standards shape financial reporting choices and analyzes the characteristics of firms based on their accounting methods.
With comprehensive discussions on key frameworks and professional standards, students gain a deep understanding of the principles guiding accounting practice. Through a combination of rigorous theoretical analysis, empirical research, and real-world case studies, this leading textbook strengthens students' critical thinking and decision-making skills while providing future professionals with the analytical and ethical foundation needed to succeed in today's global financial environment.
Providing essential knowledge for careers in financial reporting, auditing, and corporate finance, Financial Accounting Theory and Analysis: Text and Cases is ideal for senior undergraduate and graduate courses in Financial Accounting Theory, Advanced Financial Accounting, and Accounting Research.
NEW TO THIS EDITION
Up-to-date coverage of the FASB and IASB Conceptual Frameworks
New sections on sustainability reporting and ESG (Environmental, Social, and Governance) accounting
Revised analyses of all FASB and IASB standards, including recent amendments
New section on financial engineering, special purpose entities, and variable interest entities
New insights on joint ventures, incorporating the latest Accounting Standards Update (ASU)
Enhanced case studies and disclosure examples using current financial statements
Expanded discussion of the FASB Agenda Consultation initiative
Updated international accounting sections to reflect recent IASB changes
New tutorial on using the FASB Accounting Standards Codification for research and application
Expanded test bank with over 300 multiple-choice questions and 250 essay questions for instructors, including 200 entirely new questions
WILEY ADVANTAGE
Prepares students for professional careers by bridging theoretical concepts with practical applications
Provides a comprehensive exploration of accounting theory and its impact on financial reporting
Integrates real-world case studies to enhance critical thinking and application skills
Covers the latest FASB and IASB standards, ensuring up-to-date knowledge of financial regulations
Examines key financial theories such as the efficient markets hypothesis (EMH) and behavioral finance model
Strengthens analytical skills with in-depth discussions on accounting methods and corporate decision-making
Enhances learning with updated financial statement analyses using real-world companies such as Hershey and Tootsie Roll
Supports instructors with a comprehensive Solutions Manual and a wealth of instructor resources for streamlined teaching
More details
Edition
15th edition
Language
English
Place of publication
New York
United States
Target group
College/higher education
Dimensions
Height: 203 mm
Width: 256 mm
Thickness: 32 mm
Weight
1312 gr
ISBN-13
978-1-394-33653-1 (9781394336531)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
Previous edition
Richard G. Schroeder | Myrtle W. Clark | Jack M. Cathey
Financial Accounting Theory and Analysis
Text and Cases
Book
11/2022
14th Edition
Wiley
€145.50
Shipment within 15-20 days
Persons
Richard G. Schroeder is Emeritus Professor of Accounting at the University of North Carolina at Charlotte. A widely published researcher, he has contributed extensively to the study of accounting theory, financial reporting standards, and audit judgment. His work has been cited over 500 times, influencing both academia and practice. Schroeder has co-authored multiple accounting textbooks, shaping accounting education for students and professionals worldwide.
Myrtle W. Clark is Associate Professor of Accounting at the Gatton College of Business and Economics, University of Kentucky. She holds a PhD from the University of South Carolina and specializes in financial accounting research and theory. Clark has authored an accounting theory textbook and published articles in esteemed journals such as Accounting Horizons and The Journal of Accounting Literature.
Jack M. Cathey is Associate Professor in the Turner School of Accountancy at the Belk College of Business, University of North Carolina at Charlotte. A Certified Public Accountant (NC), he previously worked as a senior auditor with KPMG. Cathey has published extensively in academic and professional journals and frequently lectures on financial reporting and information systems. As Program Director for the UNC Charlotte Master of Accountancy Program, he is dedicated to advancing accounting education and practice.
Myrtle W. Clark is Associate Professor of Accounting at the Gatton College of Business and Economics, University of Kentucky. She holds a PhD from the University of South Carolina and specializes in financial accounting research and theory. Clark has authored an accounting theory textbook and published articles in esteemed journals such as Accounting Horizons and The Journal of Accounting Literature.
Jack M. Cathey is Associate Professor in the Turner School of Accountancy at the Belk College of Business, University of North Carolina at Charlotte. A Certified Public Accountant (NC), he previously worked as a senior auditor with KPMG. Cathey has published extensively in academic and professional journals and frequently lectures on financial reporting and information systems. As Program Director for the UNC Charlotte Master of Accountancy Program, he is dedicated to advancing accounting education and practice.
Content
Preface, xi
1 The Development of Accounting Theory, 1
The Early History of Accounting, 2
Accounting in the United States Since 1930, 5
The Role of Ethics in Accounting, 21
International Accounting Standards, 25
2 The Pursuit of the Conceptual Framework, 30
The Early Theorists, 30
Professional Organizations' and Authoritative Standard-Setting
Bodies' Contributions, 32
Committee on Accounting Procedure, 33
Accounting Principles Board, 33
A Statement of Basic Accounting Theory, 36
The Trueblood Committee, 37
Statement on Accounting Theory and Theory Acceptance, 39
The FASB's Original Conceptual Framework Project, 42
International Cooperation, 44
Principles-Based Versus Rules-Based Accounting Standards, 61
International Convergence, 65
3 International Accounting, 78
International Business Accounting Issues, 79
he Development of Accounting Systems, 79
Preparation of Financial Statements for Foreign Users, 81
The International Accounting Standards Committee, 81
The Uses of International Accounting Standards, 93
The IASC and the IOSCO, 94
The IASB Annual Improvements Project, 96
IASB-FASB Convergence, 96
The Effects of International Versus US GAAP Accounting Standards, 97
Standards Overload, 100
Framework for the Preparation and Presentation of Financial Statements, 102
The IASB-FASB Financial Statement Presentation Project, 111
4 The Status, Development and Uses of Financial Reporting, 119
The Financial Reporting Environment, 119
Research Methodology, 122
The Outcomes of Providing Accounting Information, 125
The Relationship Among Accounting Research, Education, and Practice, 155
5 Income Concepts, Revenue Recognition, and Other Methods of Reporting, 162
The Nature of Income, 163
Economic Versus Accounting Income, 167
Revenue Recognition, 169
Matching, 188
Income Recognition Constraints, 190
Non-GAAP Measures of Performance, 192
Sustainability Reporting, 194
Earnings Quality, Earnings Management, and Fraudulent Financial Reporting, 205
International Accounting Standards, 211
6 Financial Statement I: The Income Statement, 227
The Economic Consequences of Financial Reporting, 227
Income Statement Elements, 227
Statement Format, 229
The Value of Corporate Earnings, 254
International Accounting Standards, 259
7 Financial Statements II: The Balance Sheet and the Statement of Cash Flows, 273
The Balance Sheet, 274
Fair Value Measurements, 285
Evaluating a Company's Financial Position, 292
The Statement of Cash Flows, 295
Financial Analysis of Cash-Flow Information, 306
International Accounting Standards, 307
8 Working Capital, 321
Development of the Working Capital Concept, 321
Current Usage, 323
Components of Working Capital, 323
Working Capital Management, 335
International Accounting Standards, 343
9 Long-Term Assets I: Property, Plant, and Equipment, 350
Property, Plant, and Equipment, 350
Financial Analysis of Property, Plant, and Equipment, 355
Cost Allocation, 355
Capital and Revenue Expenditures, 359
Recognition and Measurement Issues, 359
Impairment of Value, 360
Accounting for Asset Retirement Obligations, 362
International Accounting Standards, 365
10 Long-Term Assets II: Investments and Intangibles, 377
Investments in Equity Securities, 377
Investments in Debt Securities, 386
Impairment of Investments in Unsecuritized Debt Including Receivables and Loans, 390
The Fair Value Option for Financial Assets, 394
Transfers of Financial Assets, 395
Intangibles, 396
Financial Analysis of Investments and Intangibles, 414
International Accounting Standards, 414
11 Long-Term Liabilities, 432
The Definition of Liabilities, 432
Recognition and Measurement of Liabilities, 433
Debt versus Equity, 434
Classification of Long-Term Debt, 437
Other Liability Measurement Issues, 452
Reference Rate Reform, 460
Troubled Debt Restructurings, 461
Financial Analysis of Long-Term Debt, 464
International Accounting Standards, 466
12 Accounting for Income Taxes, 481
Historical Perspective, 481
The Income Tax Allocation Issue, 483
Permanent and Temporary Differences, 483
Conceptual Issues, 487
Alternative Interperiod Tax Allocation Methods, 491
Financial Statement Disclosure, 500
FIN No. 48, "Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109", 504
The Tax Cuts and Jobs Act of 2017, 505
Financial Analysis of Income Taxes, 508
International Accounting Standards, 511
13 Leases, 519
Accounting for Leases, 520
Historical Perspective, 521
Subsequent Developments, 532
FASB ASC 842, 534
Lease Agreements Affected by ASU 2020-04 Reference Rate Reform, 545
Financial Analysis of the Effects of Capitalizing Operating Leases, 547
International Accounting Standards, 549
14 Pensions and Other Postretirement Benefits, 561
Historical Perspective, 563
Accounting for the Pension Fund, 573
The Employee Retirement Income Security Act, 574
Other Postretirement Benefits, 575
Postemployment Benefits, 577
SFAS No. 132, 577
SFAS No. 158, 577
ASU 2017-07, 579
ASU 2018-14, 580
Financial Analysis of Pension and Other Postretirement Benefits, 581
International Accounting Standards, 581
15 Equity, 589
Theories of Equity, 590
Definition of Equity, 594
The Distinction Between Debt and Equity, 595
Corporate Equity, 598
Financial Analysis of Stockholders' Equity, 611
International Accounting Standards, 612
16 Accounting for Multiple Entities, 621
Business Combinations, 621
Accounting for Business Combinations, 623
Consolidations, 630
Financial Engineering and the Role of Structured Entities, 634
Theories of Consolidation, 637
Noncontrolling Interest, 639
Drawbacks of Consolidation, 641
Joint Ventures, 642
Special Purpose Acquisition Companies, 643
Segment Reporting, 646
Foreign Currency Translation, 653
International Accounting Standards, 660
17 Financial Reporting Disclosure Requirements and Ethical Responsibilities, 680
Recognition and Measurement Criteria, 680
The Securities and Exchange Commission, 703
Ethical Responsibilities, 712
International Accounting Standards, 721
Cases, 727
FASB ASC Research, 731
Room for Debate, 732
Index, I-1
1 The Development of Accounting Theory, 1
The Early History of Accounting, 2
Accounting in the United States Since 1930, 5
The Role of Ethics in Accounting, 21
International Accounting Standards, 25
2 The Pursuit of the Conceptual Framework, 30
The Early Theorists, 30
Professional Organizations' and Authoritative Standard-Setting
Bodies' Contributions, 32
Committee on Accounting Procedure, 33
Accounting Principles Board, 33
A Statement of Basic Accounting Theory, 36
The Trueblood Committee, 37
Statement on Accounting Theory and Theory Acceptance, 39
The FASB's Original Conceptual Framework Project, 42
International Cooperation, 44
Principles-Based Versus Rules-Based Accounting Standards, 61
International Convergence, 65
3 International Accounting, 78
International Business Accounting Issues, 79
he Development of Accounting Systems, 79
Preparation of Financial Statements for Foreign Users, 81
The International Accounting Standards Committee, 81
The Uses of International Accounting Standards, 93
The IASC and the IOSCO, 94
The IASB Annual Improvements Project, 96
IASB-FASB Convergence, 96
The Effects of International Versus US GAAP Accounting Standards, 97
Standards Overload, 100
Framework for the Preparation and Presentation of Financial Statements, 102
The IASB-FASB Financial Statement Presentation Project, 111
4 The Status, Development and Uses of Financial Reporting, 119
The Financial Reporting Environment, 119
Research Methodology, 122
The Outcomes of Providing Accounting Information, 125
The Relationship Among Accounting Research, Education, and Practice, 155
5 Income Concepts, Revenue Recognition, and Other Methods of Reporting, 162
The Nature of Income, 163
Economic Versus Accounting Income, 167
Revenue Recognition, 169
Matching, 188
Income Recognition Constraints, 190
Non-GAAP Measures of Performance, 192
Sustainability Reporting, 194
Earnings Quality, Earnings Management, and Fraudulent Financial Reporting, 205
International Accounting Standards, 211
6 Financial Statement I: The Income Statement, 227
The Economic Consequences of Financial Reporting, 227
Income Statement Elements, 227
Statement Format, 229
The Value of Corporate Earnings, 254
International Accounting Standards, 259
7 Financial Statements II: The Balance Sheet and the Statement of Cash Flows, 273
The Balance Sheet, 274
Fair Value Measurements, 285
Evaluating a Company's Financial Position, 292
The Statement of Cash Flows, 295
Financial Analysis of Cash-Flow Information, 306
International Accounting Standards, 307
8 Working Capital, 321
Development of the Working Capital Concept, 321
Current Usage, 323
Components of Working Capital, 323
Working Capital Management, 335
International Accounting Standards, 343
9 Long-Term Assets I: Property, Plant, and Equipment, 350
Property, Plant, and Equipment, 350
Financial Analysis of Property, Plant, and Equipment, 355
Cost Allocation, 355
Capital and Revenue Expenditures, 359
Recognition and Measurement Issues, 359
Impairment of Value, 360
Accounting for Asset Retirement Obligations, 362
International Accounting Standards, 365
10 Long-Term Assets II: Investments and Intangibles, 377
Investments in Equity Securities, 377
Investments in Debt Securities, 386
Impairment of Investments in Unsecuritized Debt Including Receivables and Loans, 390
The Fair Value Option for Financial Assets, 394
Transfers of Financial Assets, 395
Intangibles, 396
Financial Analysis of Investments and Intangibles, 414
International Accounting Standards, 414
11 Long-Term Liabilities, 432
The Definition of Liabilities, 432
Recognition and Measurement of Liabilities, 433
Debt versus Equity, 434
Classification of Long-Term Debt, 437
Other Liability Measurement Issues, 452
Reference Rate Reform, 460
Troubled Debt Restructurings, 461
Financial Analysis of Long-Term Debt, 464
International Accounting Standards, 466
12 Accounting for Income Taxes, 481
Historical Perspective, 481
The Income Tax Allocation Issue, 483
Permanent and Temporary Differences, 483
Conceptual Issues, 487
Alternative Interperiod Tax Allocation Methods, 491
Financial Statement Disclosure, 500
FIN No. 48, "Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109", 504
The Tax Cuts and Jobs Act of 2017, 505
Financial Analysis of Income Taxes, 508
International Accounting Standards, 511
13 Leases, 519
Accounting for Leases, 520
Historical Perspective, 521
Subsequent Developments, 532
FASB ASC 842, 534
Lease Agreements Affected by ASU 2020-04 Reference Rate Reform, 545
Financial Analysis of the Effects of Capitalizing Operating Leases, 547
International Accounting Standards, 549
14 Pensions and Other Postretirement Benefits, 561
Historical Perspective, 563
Accounting for the Pension Fund, 573
The Employee Retirement Income Security Act, 574
Other Postretirement Benefits, 575
Postemployment Benefits, 577
SFAS No. 132, 577
SFAS No. 158, 577
ASU 2017-07, 579
ASU 2018-14, 580
Financial Analysis of Pension and Other Postretirement Benefits, 581
International Accounting Standards, 581
15 Equity, 589
Theories of Equity, 590
Definition of Equity, 594
The Distinction Between Debt and Equity, 595
Corporate Equity, 598
Financial Analysis of Stockholders' Equity, 611
International Accounting Standards, 612
16 Accounting for Multiple Entities, 621
Business Combinations, 621
Accounting for Business Combinations, 623
Consolidations, 630
Financial Engineering and the Role of Structured Entities, 634
Theories of Consolidation, 637
Noncontrolling Interest, 639
Drawbacks of Consolidation, 641
Joint Ventures, 642
Special Purpose Acquisition Companies, 643
Segment Reporting, 646
Foreign Currency Translation, 653
International Accounting Standards, 660
17 Financial Reporting Disclosure Requirements and Ethical Responsibilities, 680
Recognition and Measurement Criteria, 680
The Securities and Exchange Commission, 703
Ethical Responsibilities, 712
International Accounting Standards, 721
Cases, 727
FASB ASC Research, 731
Room for Debate, 732
Index, I-1