Features of the Revision: NEW - due to increasing worldwide acceptance of IASB standards, forthcoming adoption of IASB standards in Canada, and prospective convergence of IASB and United States standards, this new edition now includes Coverage of accounting standards oriented to IASB standards. Major FASB standards are retained and updated where they are in advance of or differ materially from IASB standards. Updated coverage of securities market efficiency, rational decision-making, and behavioural finance Expanded and updated discussion of global integration of accounting standards Updated references and discussion of recent research articles New problem material added to encompass recent issues and developments in financial reporting Expanded coverage of the role of conservative accounting, in view of academic concerns about continuing movement towards fair value accounting by standard setters. Hallmark Features retained: Theory in Practice -- grounds the theory in real world examples Flow Charts -- helps visual learners grasp the abstract nature of the material. Each chapter opens with a chart designed to encapsulate the concepts presented Reflects the most current CICA Handbook standards Strong coverage of ethics Optional, higher level content presented in such a way that instructors can easily skip the material without losing continuity in the topic (asterisked sections) Describes and evaluates financial accounting standardssuch as reserve/recognition accounting, management discussion and analysis, foreign exchange translation, post-retirement benefits, financial instruments, marking-to-market and ceiling tests Describes the structure of standard-setting bodies Evaluates the role of structure in helping to engineer the consent necessary for a successful standard Key terms are bolded for easy identification and reference.