The eighth edition of Financial Accounting Theory by William R. Scott provides an in‐depth exploration of both the theoretical framework and the practical applications of contemporary accounting standards. With a strong emphasis on the developments of 2018 IASB standards alongside major U.S. standards, this edition offers readers a balanced discussion that exposes them to the core contents of the standards while grounding them in the underlying theory. The text critically evaluates key accounting topics such as fair value accounting, financial instruments, reserve recognition accounting, management discussion and analysis, employee stock options, impairment tests, hedge accounting, derecognition, consolidation, and comprehensive income. Additionally, it delves into the institutional structure of financial accounting and standard-setting, illustrating how the design of standard-setting bodies can influence consensus and lead to robust regulatory frameworks.
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