Description
Financial Accounting, Fifth Canadian Edition,by Charles T. Horngren EBOOK PDF Instant Download
Table of Contents
Financial Accounting
Financial Accounting
Contents
Preface
Helping Students Build a Solid Financial Accounting Foundation
Changes to the Fifth Canadian Edition
Student Resources
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Technology Specialists
Instructor’s Resources
Prologue
Financial Accounting
1 The Financial Statements
Learning Objectives
Explain Why Accounting is the Language of Business
Objective
Who Uses Accounting Information?
Managers
Investors and Creditors
Government and Regulatory Bodies
Individuals
Not-for-Profit Organizations
Two Kinds of Accounting: Financial Accounting and Management Accounting
Organizing a Business
Proprietorships
Partnerships
CORPORATIONS
Explain Accounting’s Conceptual Framework and Underlying Assumptions
Objective
Generally Accepted Accounting Principles
Accounting’s Conceptual Framework
Fundamental Qualitative Characteristics
Enhancing Qualitative Characteristics
The Cost Constraint
Assumptions Underlying the Conceptual Framework
Going-Concern Assumption
Separate-Entity Assumption
Historical-Cost Assumption
Stable-Monetary-Unit Assumption
Stop + Think (1-1)
Describe the Purpose of Each Financial Statement and Explain the Elements of Each One
Objective
The Income Statement Measures Operating Performance
Income
Expenses
The Statement of Retained Earnings Reports Changes in Retained Earnings
The Balance Sheet Measures Financial Position
Assets
Liabilities
Owners’ Equity
Stop + Think (1-2)
The Statement of Cash Flows Measures Cash Receipts and Payments
Operating Activities
Investing Activities
Financing Activities
The Notes to the Financial Statements Provide Additional Information
Explain the Relationships among the Financial Statements
Objective
Make Ethical Business Decisions
Objective
Summary of Chapter 1
End-of-Chapter Summary Problem
Review the Financial Statements
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
Project 1
Project 2
2 Recording Business Transactions
Learning Objectives
Describe Common Types of Accounts
Objective
Asset Accounts
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Land
Buildings
Equipment, Furniture, and Fixtures
Liability Accounts
Accounts Payable
Accrued Liabilities
Loans Payable
Shareholders’ Equity Accounts
Share Capital
Retained Earnings
Dividends
Revenues
Expenses
Gains and Losses
Stop + Think (2-1)
Record the Impact of Business Transactions on the Accounting Equation
Objective
Transactions and Financial Statements
MID-Chapter Summary Problem
Solutions
Record Business Transactions in T-Accounts
Objective
Chart of Accounts
The T-Account
Increases and Decreases in the Accounts: The Rules of Debit and Credit
The Expanded Accounting Equation
Analyzing Transactions Using Only T-Accounts
Record Business Transactions in the Journal and Post them to the Ledger
Objective
Posting from the Journal to the Ledger
The Flow of Accounting Data
Transaction 1 Analysis
Transaction 2 Analysis
Transaction 3 Analysis
Transaction 4 Analysis
Transaction 5 Analysis
Transaction 6 Analysis
Transaction 7 Analysis
Transaction 8 Analysis
Transaction 9 Analysis
Transaction 10 Analysis
Transaction 11 Analysis
Accounts After Posting to the Ledger
Analyzing Accounts
Prepare a Trial Balance
Objective
Summary of Chapter 2
End-of-Chapter Summary Problem
Review the Recording of Business Transactions
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Serial Exercise
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issues
Issue 1
Issue 2
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Projects
3 Accrual Accounting and the Financial Statements
Learning Objectives
Explain How Accrual Accounting Differs from Cash-Basis Accounting
Objective
Apply the Revenue and Expense Recognition Principles
Objective
The Revenue Recognition Principle
The Expense Recognition Principle
Stop + Think (3-1)
Record Adjusting Journal Entries
Objective
Types of Adjusting Entries
Deferrals—Prepaid Expenses
Prepaid Rent
Supplies
Stop + Think (3-2)
Deferrals—Unearned Revenues
Depreciation of Property, Plant, and Equipment
Stop + Think (3-3)
Accruals—Accrued Expenses
Accruals—Accrued Revenues
Stop + Think (3-4)
Summary of the Adjusting Process
The Adjusted Trial Balance
Prepare the Financial Statements
Objective
Formats for the Financial Statements
Balance Sheet Formats
Income Statement Formats
MID-Chapter Summary Problem
Record Closing Journal Entries
Objective
Analyze and Evaluate a Company’s Debt-Paying Ability
Objective
Net Working Capital
Current Ratio
Debt Ratio
How do Transactions Affect the Ratios?
Summary of Chapter 3
End-of-Chapter Summary Problem
Review Accrual Accounting and Income
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Serial Exercise
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issues
Issue 1
Issue 2
Focus on Financials
Focus on Analysis
TELUS Corporation
Group Project
4 Internal Control and Cash
Learning Objectives
Describe Fraud and its Impact
Objective
Fraud and Ethics
Explain the Objectives and Components of Internal Control
Objective
The Sarbanes-Oxley Act (SOX)
The Components of Internal Control
Control Environment
Risk Assessment
Information Systems
Control Procedures
Monitoring of Controls
Internal Control Procedures
Smart Hiring Practices
Separation of Duties
Proper Monitoring
Adequate Records
Limited Access
Proper Approvals
Information Technology
Safeguard Controls
Stop + Think (4-1)
Internal Controls for E-Commerce
Stolen Credit-Card Numbers
Computer Viruses and Trojan Horses
Phishing Expeditions
Security Measures
Encryption
Firewalls
Stop + Think (4-2)
Limitations of Internal Control—Costs and Benefits
Prepare and Use a Bank Reconciliation
Objective
Signature Card
Deposit Slip
Cheque
Bank Statement
Bank Reconciliation
Preparing the Bank Reconciliation
Bank Side of the Reconciliation
Book Side of the Reconciliation
Bank Reconciliation Illustrated
Recording Transactions from the Bank Reconciliation
Online Banking
Stop + Think (4-3)
Using the Bank Reconciliation to Control Cash
MID-Chapter Summary Problem
Apply Internal Controls to Cash Receipts and Cash Payments
Objective
Cash Receipts Over the Counter
Cash Receipts by Mail
Controls Over Payment by Cheque
Controls Over Purchase and Payment
Petty Cash
Stop + Think (4-4)
Construct and Use a Budget to Manage Cash
Objective
Reporting Cash on the Balance Sheet
Summary of Chapter 4
End-of-Chapter Summary Problem
Review Internal Control and Cash
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
5 Short-Term Investments and Receivables
Learning Objectives
Account for Short-Term Investments
Objective
Held-for-Trading Investments
Unrealized Gains and Losses
Realized Gains and Losses
Notes to the Financial Statements
Reporting in the Financial Statements
The Balance Sheet
Income Statement
MID-Chapter Summary Problem
Answer
Account for and Control Receivables
Objective
Types of Receivables
Internal Controls Over Cash Collections on Account
How do We Manage the Risk of Not Collecting?
Estimate and Account for Uncollectible Accounts Receivable
Objective
Stop + Think (5-1)
Allowance Method
Percentage-of-Sales Method
Aging-of-Receivables Method
Writing Off uncollectible Accounts
Stop + Think (5-2)
Recovery of an Uncollectible Account
Direct Write-Off Method
Computing Cash Collections from Customers
Account for Notes Receivable
Objective
Accounting for Notes Receivable
Explain How to Improve Cash Flows from Sales and Receivables
Objective
Reporting on the Statement of Cash Flows
Evaluate a Company’s Liquidity
Objective
Acid-Test (or Quick) Ratio
Days’ Sales in Receivables
Summary of Chapter 5
End-of-Chapter Summary Problem
Review Short-Term Investments and Receivables
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
6 Inventory and Cost of Goods Sold
Learning Objectives
Account for Inventory Using the Perpetual and Periodic Inventory Systems
Objective
Accounting for Inventory
Sales Price Versus Cost of Inventory
Number of Units of Inventory
Cost Per Unit of Inventory
What Goes into Inventory Cost?
Accounting for Inventory in the Perpetual System
How the Perpetual System Works
Recording Transactions in the Perpetual System
Recording Transactions in the Periodic System
Explain and Apply Three Inventory Costing Methods
Objective
Inventory Costing Methods
Specific Identification Cost Method
Illustration of Weighted-Average and Fifo Costing Methods
Weighted-Average Cost–Perpetual
Weighted-Average Cost–Periodic
Fifo Cost–Perpetual
Fifo Cost-Periodic
The Effects of FIFO and Weighted-Average Cost on Cost of Goods Sold, Gross Profit, and Ending Inventory
Comparison of the Inventory Methods
MID-Chapter Summary Problem
Explain How Accounting Standards Apply to Inventory
Objective
Comparability
Disclosure Principle
Lower of Cost and Net Realizable Value
Analyze and Evaluate Gross Profit and Inventory Turnover
Objective
Gross Profit Percentage
Inventory Turnover
Stop + Think 6-1
Use the Cost-of-Goods-Sold (COGS) Model to Make Management Decisions
Objective
Estimating Inventory by the Gross Profit Method
Stop + Think (6-2)
Analyze How Inventory Errors Affect the Financial Statements
Objective
Inventory Errors
Reporting on the Statement of Cash Flows
Summary of Chapter 6
End-of-Chapter Summary Problem
Review Inventory and Cost of Goods Sold
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
7 Property, Plant, and Equipment, and Intangible Assets
Learning Objectives
Describe the Types of Tangible and Intangible Assets a Business May Own
Objective
Measure and Account for the Cost of Property, Plant, and Equipment
Objective
Land
Buildings, Machinery, and Equipment
Land Improvements and Leasehold Improvements
Lump-Sum (or Basket) Purchases of Assets
Stop + Think (7-1)
Capital Expenditure Versus an Immediate Expense
Calculate and Record Depreciation on Property, Plant, and Equipment
Objective
How to Measure Depreciation
Depreciation Methods
Straight-Line Method
Stop + Think (7-2)
Units-of-Production Method
Diminishing-Balance Method
Stop + Think (7-3)
Comparing Depreciation Methods
MID-Chapter Summary Problem
Explain Additional Topics in Accounting for Long-Lived Tangible Assets
Objective
Depreciation for Partial Years
Changing the Useful Life of a Depreciable Asset
Stop + Think (7-4)
Fully Depreciated Assets
Derecognition of Property, Plant, and Equipment
Selling Property, Plant, and Equipment
Stop + Think (7-5)
Using T-Accounts to Analyze Property, Plant, and Equipment Transactions
Special Issues in Accounting for Property, Plant, and Equipment
Depreciation for Tax Purposes
Depreciating Significant Components
Impairment
Revaluation Model
Account for Intangible Assets
Objective
Accounting for Specific Intangibles
Patents
Copyrights
Trademarks and Trade Names
Franchises and Licences
Goodwill
Accounting for the Impairment of an Intangible Asset
Accounting for Research and Development Costs
Analyze and Evaluate a Company’s Return on Assets
Objective
DuPont Analysis: A More Detailed View of ROA
Interpret Tangible and Intangible Asset Activities on the Statement of Cash Flows
Objective
Stop + Think (7-6)
Summary of Chapter 7
End-of-Chapter Summary Problem
Review Property, Plant, and Equipment, and Intangible Assets
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
8 Long-Term Investments and the Time Value of Money
Learning Objectives
Analyze and Report Non-Strategic Investments
Objective
What Value of an Investment is Most Relevant?
Selling a Non-strategic Investment
Stop + Think (8-1)
Analyze and Report Investments in Affiliated Companies Using the Equity Method
Objective
Accounting for Investments Using the Equity Method
The Investor’s Percentage of Investee Income
Receiving Dividends Under the Equity Method
Summary of the Equity Method
Analyze and Report Controlling Interests in other Corporations Using Consolidated Financial Statements
Objective
Why Buy Another Company?
Consolidation Accounting
Goodwill and Non-controlling Interests
Income of a Consolidated Entity
Consolidation of Foreign Subsidiaries
Foreign Currencies and Exchange Rates
Foreign-Currency Translation Adjustment
Analyze and Report Long-Term Investments in Bonds
Objective
MID-Chapter Summary Problem
Report Investing Activities on the Statement of Cash Flows
Objective
Explain the Impact of the Time Value of Money on Certain Types of Investments
Objective
Future Value
Present Value
Present-Value Tables
Present Value of an Annuity
Using Present Value to Compute the Fair Value of Investments
Present Value of an Investment in Bonds
Summary of Chapter 8
End-of-Chapter Summary Problem
Review Long-Term Investments and the Time Value of Money
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
9 Liabilities
Learning Objectives
Explain and Account for Current Liabilities
Objective
Current Liabilities of Known Amount
Short-Term Borrowings
Accounts Payable
Accrued Liabilities (Accrued Expenses)
Short-Term Notes Payable
Sales Tax Payable
Payroll Liabilities
Unearned Revenues
Current Portion of Long-Term Debt
Stop + Think (9-1)
Current Liabilities that Must Be Estimated
Estimated Warranty Payable
Contingent Liabilities
Are All Liabilities Reported on the Balance Sheet or Disclosed in the Notes?
Summary of Current Liabilities
MID-Chapter Summary Problem
Explain the Types, Features, and Pricing of Bonds Payable
Objective
Bonds: An Introduction
Types of Bonds
Bond Prices
Bond Interest Rates Determine Bond Prices
Account for Bonds Payable
Objective
Issuing Bonds at Face Value
Issuing Bonds at a Discount
Calculate and Account for Interest Expense on Bonds Payable
Objective
Interest Expense on Bonds Issued at a Discount
Stop + Think (9-2)
Partial-Period Interest Amounts
Issuing Bonds at a Premium
The Straight-Line Amortization Method
Explain the Advantages and Disadvantages of Financing with Debt Versus Equity
Objective
Analyze and Evaluate a Company’s Debt-Paying Ability
Objective
The Leverage Ratio
The Times-Interest-Earned Ratio
Stop + Think (9-3)
Describe other Types of Long-Term Liabilities
Objective
Term Loans
Leases
Post-Employment Benefits
Report Liabilities on the Balance Sheet
Objective
Reporting Financing Activities on the Statement of Cash Flows
Summary of Chapter 9
End-of-Chapter Summary Problem
Review Liabilities
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issues
Issue 1
Issue 2
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Projects
Project 1
10 Shareholders’ Equity
Learning Objectives
Explain the Main Features of a Corporation
Objective
Controlling and Managing a Corporation
Shareholders’ Rights
Shareholders’ Equity
Classes of Shares
Par Value and Stated Value
Account for the Issuance of Shares
Objective
Issuing Shares for Cash
Stop + Think (10-1)
Mid-Chapter Summary Problem
Explain Why a Company Repurchases Shares
Objective
Account for Retained Earnings, Dividends, and Stock Splits
Objective
Declaring and Paying Dividends
Cash Dividends
Stock Dividends
Stop + Think (10-2)
Dividends on Preferred Shares
Expressing the Dividend on Preferred Shares
Dividends on Preferred and Common Shares
Dividends on Cumulative and Non-Cumulative Preferred Shares
Stock Splits
Summary of the Effects on Assets, Liabilities, and Shareholders’ Equity
Distinguish between Fair Value and Book Value Per Share
Objective
Fair Value
Book Value
Stop + Think (10-3)
Evaluate a Company’s Return on Equity Using Dupont Analysis
Objective
Report Equity Transactions and Events in the Financial Statements
Objective
Reporting in the Statement of Cash Flows
Issuance of Shares
Repurchase of Shares
Cash Dividends
Reporting in the Balance Sheet and Notes
Summary of Chapter 10
End-of-Chapter Summary Problem
Review Shareholders’ Equity
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Ethical Issue 1
Ethical Issue 2
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
11 The Income Statement, the Statement of Comprehensive Income, and the Statement of Shareholders’ Equity
Learning Objectives
Evaluate the Quality of Earnings
Objective
Revenue Recognition
Expense Recognition
Operating Expenses
Operating Income
What Should You Analyze to Gain an Overall Picture of a Company?
Account for other Items on the Income Statement
Objective
Interest Expense and Interest Income
Corporate Income Taxes
Discontinued Operations
Accounting Changes
Accounting Errors
Compute Earnings Per Share
Objective
Analyze the Statement of Comprehensive Income and the Statement of Changes in Shareholders’ Equity
Objective
Reporting Comprehensive Income
Reporting Changes in Shareholders’ Equity
Differentiate between Management’s and the Auditor’s Responsibilities in Financial Reporting
Objective
Management’s Responsibility
The Auditor’s Responsibilities
Summary of Chapter 11
End-of-Chapter Summary Problem
Review the Income Statement, the Statement of Comprehensive Income, and the Statement of Shareholders’ Equity
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Decision Cases
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
12 The Statement of Cash Flows
Learning Objectives
Explain the Uses of the Statement of Cash Flows
Objective
How is a Company’s Cash Flow? Telltale Signs of Financial Difficulty
Explain and Classify Cash Flows from Operating, Investing, and Financing Activities
Objective
Classifying Interest and Dividends
Stop + Think (12-1)
Two Methods of Determining Cash Flows from Operating Activities
Prepare a Statement of Cash Flows Using the Indirect Method of Determining Cash Flows from Operating Activities
Objective
Cash Flows from Operating Activities
Depreciation and Amortization Expenses.
Gains and Losses on the Sale of Investing Assets.
Changes in Non-Cash Operating Working Capital Accounts.
Accounts Receivable
Inventory
Prepaid expenses
Accounts payable and accrued liabilities
Unearned revenue
Evaluating Cash Flows from Operating Activities.
Cash Flows from Investing Activities
Acquisitions and Sales of Tangible and Intangible Assets.
Acquisitions and Sales of Investments other than Cash Equivalents.
Making and Collecting Loans and Advances to Others.
Cash Flows from Financing Activities
Borrowing Money and Repaying Debts.
Payment of Dividends.
Stop + Think (12-2)
Non-cash Investing and Financing Activities
Measuring Cash Adequacy: Free Cash Flow
Summary of Chapter 12
Review the Statement of Cash Flows
Quick Check
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Ethical Issue
Focus on Financials
Focus on Analysis
Telus Corporation
Group Project
Project 1
Project 2
Appendix 12A Preparing the Statement of Cash Flows: Direct Method
Prepare a Statement of Cash Flows Using the Direct Method of Determining Cash Flows from Operating Activities
Objective
Cash Flows from Operating Activities
Cash Collections from Customers.
Cash Receipts of Interest.
Cash Receipts of Dividends.
Payments to Suppliers.
Payments to Employees.
Payments for Interest Expense and Income tax Expense.
Depreciation Expense.
Gain on Sale of Property, Plant, and Equipment.
Stop + Think (12A-1)
Computing Operating Cash Flows by the Direct Method
Computing Cash Collections from Customers.
Computing Payments to Suppliers.
Computing Payments for Operating Expenses.
Computing Payments to Employees.
Computing Payments of Interest and Income Taxes.
Cash Flows from Investing and Financing Activities
Stop + Think (12A-2)
Summary of Appendix 12A
End-of-Appendix Summary Problem
Assess Your Progress
Short Exercises
Exercises
Challenge Exercise
Problems
(Group A)
(Group B)
13 Financial Statement Analysis
Learning Objectives
Perform a Horizontal Analysis of Financial Statements
Objective
Illustration: Empire Company Limited
Stop + Think (13-1)
Trend Percentages
Perform a Vertical Analysis of Financial Statements
Objective
Illustration: Empire Company Limited
Prepare Common-Size Financial Statements
Objective
Benchmarking
Benchmarking Against a Key Competitor
Stop + Think (13-2)
Use the Statement of Cash Flows in Decision Making
Objective
MID-Chapter Summary Problem
Use Ratios to Make Business Decisions
Objective
Measuring the Ability to Pay Current Liabilities
Current Ratio.
Quick (Acid-Test) Ratio.
Measuring Turnover and the Cash Conversion Cycle
Inventory Turnover.
Accounts Receivable Turnover.
Days’ Sales in Receivables.
Accounts Payable Turnover.
Cash Conversion Cycle.
Measuring Leverage: Overall Ability to Pay Debts
Debt Ratio.
Times-Interest-Earned Ratio.
Measuring Profitability
Gross (Profit) Margin.
Operating Income (Profit) Percentage.
Dupont Analysis.
Return (Net Profit Margin) on Sales.
Asset Turnover.
Return on Total Assets (ROA).
Leverage (Equity Multiplier) Ratio.
Return on Common Shareholders’ Equity (ROE).
Earnings Per Share of Common Stock.
Analyzing Stock Shares as an Investment
Price/Earnings Ratio (Multiple).
Dividend Yield.
Book Value Per Share of Common Stock.
The Limitations of Ratio Analysis
Red Flags in Financial Statement Analysis
Summary of Chapter 13
End-of-Chapter Summary Problem
Review Financial Statement Analysis
Quick Check (Answers are Given on Page 690.)
Accounting Vocabulary
Assess Your Progress
Short Exercises
Exercises
Challenge Exercises
Quiz
Problems
(Group A)
(Group B)
Apply Your Knowledge
Ethical Issue
Focus on Financials
TELUS Corporation
Focus on Analysis
TELUS Corporation
Group Project
Project 1
Project 2
Appendix A TELUS 2011 Annual Report
Report of Management on Internal Control Over Financial Reporting
Consolidated Statements of Income and other Comprehensive Income
Consolidated Statements of Financial Position
Consolidated Statements of Changes in Owners’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
1 Summary of Significant Accounting Principles
(a) Consolidation
(b) Use of estimates and judgements
(c) Financial instruments – recognition and measurement*
(d) Hedge accounting
(e) Revenue recognition
(f) Government assistance*
(g) Cost of acquisition and advertising costs
(h) Research and development
(i) Leases
(j) Depreciation, amortization and impairment*
(k) Translation of foreign currencies
(l) Income taxes*
(m) Share-based compensation
(n) Employee future benefit plans*
(o) Cash and temporary investments, net
(p) Sales of trade receivables*
(q) Inventories
(r) Property, plant and equipment; intangible assets*
(s) Investments
6 Other Operating Income
CRTC portable subsidy
Government of Québec
8 Financing Costs
10 Other Comprehensive Income
12 Dividends Per Share
(a) Dividends declared
(b) Dividend Reinvestment and Share Purchase Plan
15 Property, Plant and Equipment
16 Intangible Assets and Goodwill
(a) Intangible assets and goodwill, net
(b) Intangible assets subject to amortization
(c) Intangible assets with indefinite lives – spectrum licences
(d) Impairment testing of intangible assets with indefinite lives and goodwill
(e) Business acquisitions
18 Short-Term Borrowings
20 Long-Term Debt
(a) Details of long-term debt
(b) TELUS Corporation notes
(c) TELUS Corporation commercial paper
(d) TELUS Corporation credit facility
(e) TELUS Communications Inc. debentures
(f) TELUS Communications Inc. first mortgage bonds
(g) Long-term debt maturities
21 Common Share and Non-Voting Share Equity
(a) Authorized share capital
22 Commitments and Contingent Liabilities
(a) Leases
(b) Concentration of labour
(c) Indemnification obligations
(d) Claims and lawsuits
24 Additional Financial Information
(a) Statement of financial position
(b) Supplementary cash flow information
Appendix B Summary of Differences between International Financial Reporting Standards and Accounting Standards for Private Enterprises
Chapter 1
Chapter 5
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Appendix C Check Figures
Glossary
Index
