I-1 Index A accounting costs, 2:28 Revenue from Contracts with AAII. see American Association of accounting equation, 3:12 Customers (ASC 606), 3:112n.25, 114 Individual Investors accounting estimates, 3:640–641 Statement of Cash Flows (ASC 230), AAR. see average accounting rate of return Accounting for Income Taxes (SFAS 109), 3:471n.32 Abbott Laboratories, 4:135–136; 5:213 3:508 Accounting Standards Updates (ASUs), ABG Gas Supply LLC, 3:650 Accounting for the Costs of Computer 3:82, 114 ability to take risk, investors’, 4:371–373. Software to be Sold, Leased, or account reviews see also risk tolerance Otherwise Marketed (SFAS 86), firm policies on,1: 105 AbitibiBowater Inc., 3:462–464 3:431 systematic, 1:114 abnormal returns, 5:124 accounting goodwill, 3:184 accounts ABP (pension fund), 4:388–389 accounting policies balance of payments, 2:368–369, absolute advantage, 2:345–352 changes in, 3:81–83 375–377 absolute dispersion, 1:428 disclosures relating to, 3:79–83 with beneficial ownership,1: 186, 187 absolute frequency, 1:393 retrospective application of, 3:128 contra, 3:169 absolute priority rule, 5:483 accounting profit doubtful, 3:120, 653 absolute return, for alternative defined, 2:28; 3:508 family, 1:108, 186, 188–189 investments, 6:129–130 taxable income vs., 3:508–513 in FX market, 2:410–411 absolute risk objectives, 4:370 and current tax assets/liabilities, in performance calculations, 1:128 absorption approach to trade balance, 3:509–510 representative, 1:221 2:447–448 and deferred tax assets/liabilities, tax asset valuation, 3:654 ABSs. see asset-backed securities 3:510–513 temporary new, 1:237, 270 Abu Dhabi Investment Authority, 4:221 taxable profit vs.,3: 518–523 uncollectible, 3:641–642 academic designations, order of, 1:202 and business combinations/deferred accounts payable, as current liability, 3:176 accelerated book building, 5:50 taxes, 3:523 accounts payable management, accelerated methods of depreciation, and investments in subsidiaries, 4:185–188 3:122–124, 435 branches, associates, and interests, cash disbursements, 4:188 acceptance region, test statistic, 3:523 evaluating, 4:188 1:628–629 temporary differences,3: 519–522 trade discounts, 4:187–188 access, short-term borrowing strategy Accounting Regulatory Committee, accounts receivable and, 4:191 3:55 as current assets, 3:169–171 account information, regular statements accounting risk, 4:427 and financial reporting quality,3: 656 of, 1:105 accounting scandals, 3:608 and taxable/deductible temporary accounting accounting standards. see also specific differences, 3:521 accrual, 3:640–641 standards and tax bases of assets, 3:514, 515 acquisition method of, 3:422 biased application of, 3:624–625 accounts receivable aging schedule, “big bath,” 3:624 convergence of, 3:99–100, 112 4:180–181 cash-basis, 3:640–641 for revenue recognition, 3:112–116 accounts receivable management, “cookie jar” reserve, 3:624–625 and ROE, 3:678–680 4:175–181 Accounting and Auditing Enforcement Accounting Standards Board of Japan, customers’ receipts, 4:177–180 Release (SEC), 3:641–643 3:57 evaluating, 4:180–181 Accounting and Corporate Regulatory accounting standards boards, 3:48–50 trade granting process, 4:176–177 Authority, 3:47, 59, 628 attributes of, 3:50 accounts receivable turnover, 4:160 accounting choices Financial Accounting Standards Board, accredited individuals, 4:236n.20 aggressive 3:49–50 Accredited Investors, 6:133n.14 and bias in application of accounting International Accounting Standards accrual accounting standards, 3:624–625 Board, 3:48–49 cash-basis vs., 3:640–641 conservative vs., 3:620–625 Accounting Standards Codification defined, 1:262 defined, 3:612 (FASB), 3:49–50 Input Data (GIPS Section I.1), 1:235 biased, 3:612–620 Accounting Standards Updates, 3:82, accrued expenses, as current liability, conservative, 3:620–625 114 3:176 aggressive vs., 3:620–625 Business Combinations (ASC 805), accrued interest, 1:376–377; 5:413–417 benefits of,3: 624 3:422n.9 accumulated other comprehensive bias in application of accounting Expenses: Compensation–Retirement income, 3:193 standards, 3:624–625 Benefits (ASC 715),3: 679 Acer Inc., 3:275–277; 5:209 defined, 3:612 Fair Value Measurements and ACH. see Automated Clearing House in extractive industries, 3:621–622 Disclosures (ASC 820), 3:417n.2 acid-test ratio, 4:160 losses in, 3:620–621 General Electric disclosures, 3:82 acquisition and deferred-tax assets, 3:642–643 Income Taxes (ASC 740), 3:508 of businesses, 3:535 earnings management with, 3:618 Interest (ASC 835), 3:428n.11 of long-lived assets, 3:417–435 financial reporting issues,3: 638–655 Leases (ASC 840), 3:467n.29, accounting for, 3:417 cash flow statements,3: 648–651 577n.14 capitalisation of interest costs, earnings and balance sheets, 3:639–648 Leases (ASC 842), 3:468 3:428–431 Cumulative_Ind_L1 1 August 1, 2018 7:45 PM I-2 Index acquisition (Continued) guidance, 1:144 African Development Bank (AFDB), capitalisation of internal development text of, 1:46, 144 2:411; 5:372 costs, 3:431–435 additional information, 1:262 after-tax cost of debt, 4:85 capitalising vs. expensing costs, additional services, for select clients, after-tax nominal return, 4:254 3:423–428 1:116 agency bonds, 5:372–373 and financial reporting issues,3: 648 addition rule for probabilities, agency relationship, 4:11; 5:61. see also intangible assets, 3:420–423 1:481–482 principal–agent relationship property, plant, and equipment, add-on rates, 5:429–431 agency RMBS, 5:490–491, 503. see also 3:417–420 adequate compliance procedures, collateralized mortgage obligations acquisition method of accounting, 1:147–149 (CMOs); mortgage pass-through 3:422 Adidas AG, 5:657–658 securities action lag, 2:316 adjustable-rate mortgages (ARMs), 5:487 agent options, 1:182 actions adjusted consolidated segment operating agents, trustee, 5:479 investment (see also Investment income (adjusted CSOI), 3:635–638 age ratios, asset, 3:460–464 Analysis, Recommendations, and adjusted EBITDA, 3:634 aggregate demand (AD), 2:137–148 Actions [Standard of Professional adjusted funds from operations (AFFO), and AD curve, 2:145–148 Conduct V]) 6:166 and business cycle, 2:202–203 fair dealing in, 1:111–112 adjustments defined, 2:136 firm policies on,1: 105–106 financial statement,3: 698–713 and fiscal policy,2: 300–301 impact of, 1:40–41 to debt, 3:710–712 and global recession (2007-2009), unethical, 1:57 framework for, 3:698 2:165–167 personal, 1:83 for goodwill, 3:704–706 and imports/exports, 2:336–337 unethical, 1:57 for inventory, 3:699–702 and inflationary gap,2: 167–168 active crawling peg currency regime, and current ratio, 3:701–702 investment strategies for decrease in, 2:437–438 with LIFO accounting, 3:699–701 2:164–165 active investment strategies for investments, 3:698 investment strategies for increase in, industry analysis in, 5:188–189 for off-balance-sheet financing, 2:168 information-acquisition costs for, 3:706–713 IS curve, 2:137–144 5:123–124 for plant, property, and equipment, LM curve, 2:144–145 and market efficiency,5: 117 3:703–704 and recessionary gap, 2:163–167 active management inventory, 3:368–375 shifts in, 2:150–157 of alternative investments, 6:124, 129 declines and recoveries of inventory capacity utilization, 2:153 of portfolios value, 3:369–370 consumer and business expectations, capital market line for, 4:318 inventory write-downs and financial 2:153 information-motivated trading in, ratios, 3:370–375 economic growth, 2:155 5:10 administrative costs, 2:366 exchange rate, 2:155 manager performance in, 5:129 administrative fees, 1:262 fiscal policy,2: 153 manager selection for, 5:116 ADRs. see American depositary receipts household wealth, 2:151–152 security market indexes in, 5:94 ADSs. see American depositary shares monetary policy, 2:153–154 of stock mutual funds, 4:232 ADT Security Services, Inc., 5:199, 200 shifts in supply and, 2:170–173 active returns, 5:116 advanced economies, trade-to-GDP aggregate demand curve (AD curve) active strategies ratio for, 2:338 example, 2:147–148 borrowing, 4:192 Advanced Micro Devices, 5:209 features of, 2:145 short-term investing, 4:171–172 adverse audit opinion, 3:28 interest rates and income effects, activist shareholders, 6:136. see also adverse selection, with insurance, 5:34 2:146–147 shareholder activism advertisements. see also GIPS investment strategies based on, activity ratios, 3:291–298 Advertising Guidelines (GIPS 2:171–172 calculation of, 3:292–294 Section III) aggregate expenditures, 2:119 in company analysis, 5:230–231 defined, 1:256 aggregate income, 2:119–136 defined, 2:220; 3:292–293 information included in, 1:256 in economy, 2:119–120 evaluation of, 3:295–298 adviser-assisted digital wealth managers, and expenditures, 2:137–144 interpretation of, 3:294–298 4:468 in gross domestic product, 2:120–136 fixed asset turnover,3: 297 advisers, selecting, 1:157 components of, 2:127–131 inventory turnover and DOH, Aegis Value Fund, 1:433 external sector, 2:130–131 3:294–295 aerospace industry, governmental government sector, 2:129–130 payables turnover and number of influences on,5: 225–226 household and business sectors, days of payables, 3:296 AFC. see average fixed cost 2:128 receivables turnover and DSO, AFDB. see African Development Bank measuring, 2:120–123 3:295–296 affiliated stockholders, as takeover nominal and real, 2:124–127 total asset turnover, 3:297 defense, 4:34 and other income measures, 2:131–136 working capital turnover, 3:297 affirmative covenants,3: 559; 5:310, 626 values of goods and services, AD.