Chapter 1 Financial Accounting and Accounting Standards
- Revised opening story, to include more recent commentaries on IFRS.
- New WDNM box, on recent progress toward global adoption of IFRS.
- Updated and expanded discussion of the IASB's standard-setting structure.
- Revised International Convergence section, to include recent developments.
- Moved Appendix 1A, The U.S. Standard-Setting Environment, to book's companion website.
Chapter 2 Conceptual Framework for Financial Reporting
- Updated Conceptual Framework discussion to reflect recent IASB discussion paper, e.g., materiality no longer considered a separate constraint.
- Updated discussion on fair value, including the establishment of the fair value hierarchy, and the revenue recognition principle.
- New WDNM boxes, on the importance of faithful representation, as exemplified by the scandal at Olympus Corp., and the concept of prudence.
- Updated discussion plus added an illustration on the five steps of revenue recognition.
- Updated Constraints section as now only cost constraint is included in the Conceptual Framework.
Chapter 3 The Accounting Information System
- New opening story on impact of global economic crime.
- Enhanced Adjusting Entries section, to provide additional explanation and visuals to students.
- New WDNM box, on companies' need to update their accounting information systems yet unwillingness to interrupt their operations ...