Intermediate Accounting, 3rd edition

Published by Pearson (January 14, 2021) © 2022

  • Elizabeth A. Gordon Temple University
  • Jana S. Raedy University of North Carolina
  • Alexander J. Sannella Rutgers Business School

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For intermediate accounting courses.

Think like an accountant, from the first day of class through your career

Accountants don't just memorize rules, they develop the judgment and decision-making skills needed to form accounting estimates and critically evaluate financial statements. With its focus on framework fundamentals and critical thinking, Intermediate Accounting gives students the opportunity to develop problem-solving skills, apply their judgment, and work with real company financials.

The 3rd Edition incorporates the latest accounting standards and regulations. With this text, students will develop the necessary skills to pass the CPA exam and think like real accountants.

Hallmark features of this title

  • Students use real company financials to analyze and apply concepts and understand accounting choices.
  • Interviews feature Q&A style exchanges with leaders in the field. Students gain insight on topics from both standard-setter and practitioner perspectives, and get timely viewpoints on changing standards.
  • Case exercises build students' ability to apply judgment-based analysis, read and interpret accounting literature, and analyze financial statements.
  • Becker CPA multiple-choice questions give students invaluable practice for the CPA exam.
  • End-of-chapter questions, exercises, and problems are keyed to learning goals, and progress in difficulty to test students' understanding.

New and updated features of this title

  • NEW: Chapter 2 incorporates the Statement of Financial Accounting Concepts No. 8, and the new IASB Conceptual Framework.
  • NEW: Chapter 8 incorporates ASU 2017-14, which made minor changes based on 2 SEC releases.
  • NEW: Chapter 15 incorporates ASU2020-06, which changes the accounting for convertible debt.
  • NEW: Chapter 15 incorporates ASU 2018-07, which now disallows the alternative measurement of the fair value of noncash consideration received; only the fair value of the stock issued is allowed.
  • NEW: Chapter 17 incorporates the Tax Cuts and Jobs Act and IFRIC 23. The Act eliminates the domestic production activities deduction, net operating loss carryback, and net operating loss carryforward to 80% of taxable income.
  • NEW: Chapter 18 incorporates ASU 2018-11, which adds an election for the lessor not to allocate lease and non-lease components separately.

Features of MyLab Accounting for the 3rd Edition

  • NEW: With Data Analytics Projects, students analyze and manipulate real company data to make important decisions.
  • Homework and practice exercises in MyLab are correlated to the exercises in the text, reflecting each author's approach and learning style. They regenerate algorithmically to give students unlimited opportunity for practice and mastery.
  • Using proven, field-tested technology, auto-graded Excel Projects let you seamlessly integrate Microsoft® Excel® content into your course without having to manually grade spreadsheets.
  • The Accounting Cycle Tutorial lets students practice each step of the accounting cycle using engaging, interactive content. It helps them master the cycle for early and continued success.
  • The Time Value of Money Tutorial ensures students understand the basic theory and formulas of the time value of money and can apply them to accounting concepts.
  • Assignable CPA exam-style questions introduce the CPA Exam format and provide early practice opportunities for students.

Features of Pearson eText for the 3rd Edition

  • Let students check their understanding. Personalized Study Tools are easy to access on both the web and mobile app to help students learn key terms.

1. The Financial Reporting Environment
2. Financial Reporting Theory
3. Judgment and Applied Financial Accounting Research
4. Review of the Accounting Cycle
5. Statements of Net Income and Comprehensive Income
6. Statements of Financial Position and Cash Flows and the Annual Report
7. Accounting and the Time Value of Money
8. Revenue Recognition (Current Standard)
Revenue Recognition (Previous Standards) ONLINE
9. Short-Term Operating Assets. Cash and Receivables
10. Short-Term Operating Assets. Inventory
11. Long-Term Operating Assets. Acquisition, Cost Allocation, and Derecognition  
12. Long-Term Operating Assets. Departures from Historical Cost  
13. Operating Liabilities and Contingencies
14. Financing Liabilities
15. Accounting for Stockholders' Equity
16. Investments in Financial Assets
17. Accounting for Income Taxes
18. Accounting for Leases (New Standard)
Accounting for Leases (Current Standards) ONLINE
19. Accounting for Employee Compensation and Benefits
20. Earnings per Share
21. Accounting Changes and Error Analysis
22. The Statement of Cash Flows

About our authors

Elizabeth A. Gordon is a professor of accounting at the Fox School of Business at Temple University and a Merves Research Fellow. She received her doctorate from Columbia University, master’s degree in business administration from Yale University, and bachelor of science degree in accounting with highest distinction from Indiana University.

Dr. Gordon specializes in the areas of international financial reporting and corporate governance. Her research is published in top journals including Journal of Accounting Research, The Accounting Review, Review of Accounting Studies, Journal of Accounting, Auditing and Finance, and Journal of Accounting and Public Policy. She serves as an editor of Journal of International Financial Management and Accounting and an editor of Journal of International Accounting Research. Dr. Gordon is a past president of the International Accounting Section of the American Accounting Association and serves as the vice president of the International Association for Accounting Education and Research, and Chair of the Department of Accounting at the Fox School of Business.

Dr. Gordon has taught courses in financial accounting and international accounting at the graduate and undergraduate levels, receiving a number of teaching awards. She has coauthored accounting readings for the CFA Institute, integrating IFRS and US GAAP. She was an auditor with PricewaterhouseCoopers, LLP, and interned at the US Office of Management and Budget before entering academia. Dr. Gordon is a CPA in the State of Maryland. She has been on the faculty of the Graduate School of Business at the University of Chicago, the Rutgers Business School, and a visiting professor at the University of Pennsylvania.

Jana S. Raedy is an associate professor of accounting, associate dean of the Master of Accounting Program, and the Ernst & Young Scholar in Accounting at the Kenan-Flager Business School at the University of North Carolina at Chapel Hill. She received her bachelor of science and master of science degrees from the University of Kentucky and her doctorate from the Pennsylvania State University.

Dr. Raedy’s research is primarily focused on issues in international financial reporting as well as areas in which financial reporting and taxation intersect. Her research is published in top journals such as Journal of Accounting Research, Journal of Accounting and Economics, The Accounting Review, Contemporary Accounting Research, and Journal of the American Taxation Association.

Dr. Raedy has taught a number of courses in financial reporting at the graduate level, including core financial reporting (both introductory and intermediate accounting), international financial reporting, and forensic accounting. For over 15 years, she has taught a self-developed course in applied financial accounting research with a heavy emphasis on judgment and decision making. During her academic career, she has received a number of different teaching awards. She currently is a team member of the Ernst & Young Academic Resource Center, which provides faculty nationwide with comprehensive teaching materials related to topics such as judgment, IFRS, and fair value.

Alexander J. Sannella is currently professor of Accounting and Information Systems at the Rutgers Business School and the Director of the MBA in Professional Accounting Program, the Director of the Master of Accountancy in Professional Accounting and the Director of the Rutgers Business School Teaching Excellence Center. He earned a BBA in Finance and an MBA in Accounting from the LaPenta School of Business at Iona College. He received his PhD in Accounting and Finance from New York University and is a New York State Certified Public Accountant. He also holds a Bachelor of Arts in Music from Rutgers University.

During his years at Rutgers Business School he has taught at both the graduate and undergraduate levels and served as Associate Dean of the Business School and Vice Chair of the Department of Accounting and Information Systems. Previously, Dr. Sannella served on the faculty of New York University as an Instructor of Accounting at the Stern School of Business and as an Associate Professor of Accounting at Iona College’s LaPenta School of Business.

He has public accounting experience as an auditor for PricewaterhouseCoopers, LLP and KPMG, LLP. Dr. Sannella was also an independent consultant working on many projects with other public accounting firms, bankruptcy trustees and leasing divisions of major insurance companies. He also served as a consultant to the Line of Business Program at the Federal Trade Commission in Washington DC. Dr. Sannella currently serves as a member of the Financial Reporting Executive Committee (FinREC) at the American Institute of Certified Public Accountants (AICPA).

Dr. Sannella has over 45 years teaching experience at the university level and over 35 years’ experience in developing and teaching commercial and investment bank training programs. His clients have included eight major investment banks and four of the world’s largest commercial banks. His training programs include courses designed to train financial analysts, associates and special programs for sales and trading professionals.

He is the author of many scholarly journal articles and 3 books. His articles have focused on market-based accounting research and more recently, accounting education. Dr. Sannella’s books focus on the effects of accounting alternatives on the judgment of analysts and other statement users. Many of the books’ topics are included on training videos and CPE courses.

He has been interviewed by several publications including the Newark Star Ledger and NJ Biz.

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