Search Ebook here:


Financial Accounting, Global Edition



Financial Accounting, Global Edition

Author: Walter T. Harrison Jr

Publisher: Pearson Education Limited

Genres:

Publish Date: Publish Date

ISBN-10: 1292211148

Pages: Pages

File Type: PDF

Language: English

read download

Ads

Book Preface

Financial Accounting: International Financial Reporting Standards (IFRS) continues to give readers a solid foundation in the fundamentals of accounting and the basics of financial statements under IFRS, and then builds upon that foundation to offer more advanced and challenging concepts and problems. This approach helps students to better understand the meaning and relevance of financial information and develop the skills needed to analyze financial information in both their courses and careers.

Written in a manner suitable for accounting and non-accounting majors, Financial Accounting: IFRS is the ideal text for a first course in financial accounting with a focus on IFRS. With its long-standing reputation in the marketplace for being easy to read and understand, this text drives home fundamental concepts in a readerfriendly way without adding unnecessary complexity. While maintaining the hallmark features of accuracy, readability, and ease of understanding, this Global Edition includes updated explanations, coverage, new realworld examples, and most importantly, updates to the Conceptual Framework.

CHANGES FOR THE ELEVENTH EDITION

1. The first three chapters of the book cover the accounting cycle and how financial statements are constructed. In previous editions of the book, we used separate companies in each of Chapters 1, 2, and 3 to illustrate various phases of the accounting cycle. For this edition, in Chapter 1, we give an overview of the company’s financial statements and explain what each contains. The Chapter Spotlight focuses on a new company, Alibaba, which provides an excellent illustration of how companies and accounting frameworks interact in a globalized setting. The updated coverage of the Conceptual Framework includes the latest changes made to the IFRS framework, setting the tone for relevant study in the subject. In Chapter 2, we cover business transactions—how they impact the accounting equation and how they are journalized, posted, and summarized. Chapters 3 and 4 come with updated Chapter Spotlights, featuring the latest financial statements and accounting practices of companies. New and updated box features reflect the latest discussions in the IFRS and harmonization contexts. Improved organization of material makes the sequence and flow of the topics easier to follow and retain. New adapted excerpts from real-world companies’ notes to the financial statements illustrate how additional information is factored into the main statements.

2. A scaffolding approach has been implemented in the book and its resources. Chapter content and the endof- chapter material builds from the basic short exercise featuring one basic concept to more advanced problems featuring multiple learning objectives. This allows the student to practice at the basic level and then build upon that success to advance to more challenging problems.

3. Short exercises, exercises, and problems are more clearly labeled by learning objective (LO). Most short exercises
have been shortened and simplified in this edition to cover only one LO each. They can be used better to briefly cover single concepts as illustrations or class exercises. Exercises might cover two or three LOs, and problems cover multiple LOs.

4. Chapter 5 has been revised to include a new Chapter Spotlight on The LEGO Group to illustrate the use of internal controls and corporate governance; updated examples of accounting scandals and their repercussions to emphasize the significance of the need for internal controls under IFRS; and new A Closer Look boxes provide snapshots into upcoming changes in IFRS under the topics covered in this chapter and their relevance with International Accounting Standards (IAS) and harmonization. The updated sequence of the topics provides a better flow of the material.

5. Chapter 6 has been updated with a new Chapter Spotlight on Fast Retailing to provide a relevant illustration of a company accounting for merchandise operations across multiple brands. Updated excerpts adapted from various companies’ financial statements offer a focused look into inventory management in modern business organizations. New Stop & Think boxes are tailored to act as important checkpoints for concepts on which later topics build. Updated illustrations provide a comparative look into real-world companies’ accounts in terms of inventory management.

6. A new Chapter Spotlight focusing on Airbus Group in Chapter 7 illustrates how major companies with operations in multiple countries account for property, plant, and equipment along with intangibles. Adapted excerpts are used as snapshots into the group’s classification of assets and methods of accounting.

7. Chapter 9 comes with a new Chapter Spotlight on Jardine Matheson Holdings Ltd. to represent how companies operating in multiple sectors account for liabilities. Updated explanations of the company’s financial statements and adapted excerpts shed light on the specifics of the various categories of liabilities. New adapted excerpts from BP’s notes to the accounts refer to the Gulf of Mexico oil spill to apply concepts to relatable, real-world incidents. Updated coverage on leases brings the chapter on a par with the latest developments in accounting for liabilities under IFRS.

8. The updated Chapter Spotlight for Chapter 10 and the new Chapter Spotlight on Singtel for Chapter 11 illustrate the management and accounting for shareholders’ equity and cash flows. Revised coverage of the cash realization ratio and the direct method to account for cash flows allow a holistic understanding of the concept. New Stop & Think boxes and adapted excerpts from real-world companies’ cash flow statements improve the understanding of concepts discussed in these chapters.

9. New Chapter Spotlight on Nestlé for Chapter 12 provides a significantly updated and comprehensive look into financial statement analysis for a company operating in multiple geographies and brands. A detailed look into the company’s financial statements covers the various aspects involved in analysis. New Stop & Think boxes offer an opportunity for the students to try their hand at interpreting financial statements and assessing their interpretation.

10. In certain sections, the “Try It in Excel” feature has been added to illustrate the use of Excel and a business problem- solving tool. Students should be exposed to such Excel applications early and frequently in their business education. Throughout the book, most exhibits and journal entries are formatted as Excel worksheets. In addition, at certain points in the text, we include examples that show students step-by-step how to build Excel templates to facilitate the solutions of specific accounting problems.

11. Ethics is a vital part of accounting. Several sections of the text are dedicated to discussing ethical problems that can arise in dealing with that particular subject matter and how they should be properly handled.

12. In all chapters, there is an emphasis on how accounting information covered in that chapter is analyzed and used to help individuals make various kinds of business decisions. User-relevant information and key ratios that are covered in various chapters include the following:

Chapter 3: Debt-paying ability: net working capital, current ratio, debt ratio
Chapter 5: Liquidity: acid-test (quick) ratio, accounts receivable turnover, days’ sales in receivables
Chapter 6: Profitability: gross profit percentage, inventory turnover, inventory resident period
Chapter 9: Time value: time value of money and how it impacts investing and lending decisions
Chapter 9: Liquidity: accounts payable turnover, days’ payable outstanding, cash collection cycle (days’ sales in receivables + days inventory outstanding – days’ payable outstanding)
Chapter 10: Profitability: rate of return on ordinary equity, often simply called return on equity (ROE) (net income – preference dividends / total shareholders’ equity – preference equity)
Chapter 11: Cash flow: use of cash flow information by creditors and investors; free cash flow
Chapter 13: Financial statement analysis: comprehensive financial statement analysis, incorporating all of the ratios covered in the previous chapters, applying them to the book’s appendix focus company, Nestlé

Contents

Preface xx
Visual Walk-Through xxiii
1 Conceptual Framework and Financial Statements 1
2 Recording Business Transactions 58
3 Accrual Accounting 129
4 Presentation of Financial Statements 207
5 Internal Control, Cash, and Receivables 253
6 Inventory and Merchandising Operations 328
7 PPE and Intangibles 389
8 Investments and International Operations 449
9 Liabilities 503
10 Stockholders’ Equity 568
11 Cash Flows 631
12 Financial Statement Analysis 702
Appendices on the Web (Available at www.pearsonglobaleditions.com/Harrison)
APPENDIX A: Nestlé Annual Report Excerpts
APPENDIX B: Time Value of Money: Future Value and Present Value
APPENDIX C: Typical Charts of Accounts for Different Types of Businesses
APPENDIX D: International Financial Reporting Standards (IFRS)
Glindex 766
Company Index 777


Download EbookRead NowFile TypeUpload Date
Download hereRead Now

Ads

PDFJanuary 29, 2018


Do you like this book? Please share with your friends, let's read it !! :)

How to Read and Open File Type for PC ?