Financial accounting

Cover
Title page
Copyright
Contents
CHAPTER 1 Decision making and the role of accounting
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	1.1 The dynamic environment of accounting
	1.2 Decisions in everyday life
	1.3 Economic decisions
	1.4 The nature of accounting
	1.5 Users of accounting information
	1.6 Using information in economic decisions
	1.7 Accounting information and decisions
	1.8 Management and financial accounting
	1.9 Accounting as a profession — Australian perspective
	1.10 Public accounting versus commercial accounting
	1.11 Ethics and accounting
CHAPTER 2 Financial statements for decision making
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	2.1 Types of business entities
	2.2 Management functions
	2.3 Basic financial statements
	2.4 Assumptions made and characteristics of information
	2.5 The effects of transactions on the accounting equation and financial statements
CHAPTER 3 Recording transactions
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	3.1 Transactions
	3.2 The accounting cycle
	3.3 Double‐entry accounting
	3.4 General journal
	3.5 Trial balance
CHAPTER 4 Adjusting the accounts and preparing financial statements
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	4.1 Measurement of profit
	4.2 The accounting cycle — expansion to include adjusting entries
	4.3 Classification of adjusting entries
	4.4 Adjusted trial balance
	4.5 Distinguishing current and non‐current assets and liabilities
	4.6 Preparing financial statements from a worksheet
	4.7 Financial statements and decision making
CHAPTER 5 Completing the accounting cycle — closing and reversing entries
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	5.1 The complete accounting cycle
	5.2 Closing temporary accounts
	5.3 Using the worksheet to record adjusting entries
	5.4 The closing process
	5.5 Accrual entries in subsequent periods
	5.6 Accounting procedures applicable to a partnership or a company
CHAPTER 6 Accounting for retailing
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	6.1 Inventory
	6.2 Condensed income statement for a retailer
	6.3 Accounting for sales transactions, including GST
	6.4 Accounting for purchases and cost of sales
	6.5 End of period processes
	6.6 Detailed income statement for a retailer
	6.7 Net price method and settlement discounts
	6.8 Profitability analysis for decision making
CHAPTER 7 Accounting systems
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	7.1 Operation and development of an accounting system
	7.2 Internal control systems
	7.3 Manual accounting systems — subsidiary ledgers
	7.4 Manual accounting systems — special journals
	7.5 Abnormal balances in subsidiary ledgers
	7.6 Accounting software
	7.7 Accounting cycle — manual and computerised
CHAPTER 8 Partnerships: formation, operation and reporting
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	8.1 Partnership defined
	8.2 Advantages and characteristics of a partnership
	8.3 Partnership agreement
	8.4 Accounting for a partnership
	8.5 Accounting for the formation of a partnership
	8.6 Allocation of partnership profits and losses
	8.7 Drawings and loans made by partners
	8.8 Financial statements for a partnership
CHAPTER 9 Companies: formation and operations
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	9.1 Types of companies
	9.2 Forming a company
	9.3 Categories of equity in a company
	9.4 Accounting for share issues
	9.5 Dividends
	9.6 Reserves
	9.7 Income tax 
	9.8 Preparing the financial statements 
CHAPTER 10 Regulation and the Conceptual Framework
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	10.1 Regulation and development of accounting standards
	10.2 The Conceptual Framework
	10.3 The reporting entity
	10.4 Objectives of general purpose financial reporting
	10.5 Qualitative characteristics of financial information
	10.6 Definitions of elements in financial statements
	10.7 Recognition of the elements
	10.8 Measurement
CHAPTER  11 Cash management and control
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	11.1 Cash defined 
	11.2 Control of cash 
	11.3 Bank accounts and reconciliation
	11.4 The petty cash fund 
	11.5 Cash budgeting 
	11.6 Cash management 
	11.7 Analysing adequacy of cash flows 
CHAPTER 12 Receivables
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	12.1 Types of receivables
	12.2 Accounts receivable (trade debtors)
	12.3 Bad and doubtful debts 
	12.4 Management and control of accounts receivable
CHAPTER 13 Inventories
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	13.1 Determining the cost of inventory on hand
	13.2 Assignment of cost to ending inventory and cost of sales — periodic system
	13.3 Costing methods in the perpetual inventory system
	13.4 Comparison of inventory systems
	13.5 The lower of cost and net realisable value rule
	13.6 Sales returns and purchases returns
	13.7 Inventory errors
	13.8 Estimating inventories
	13.9 Presentation in financial statements
	13.10 Effect of costing methods on decision making
CHAPTER 14 Non‐current assets: acquisition and depreciation
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	14.1 The nature of property, plant and equipment
	14.2 Determining the cost of property, plant and equipment
	14.3 Apportioning the cost of a lump‐sum acquisition
	14.4 Assets acquired under a lease agreement
	14.5 Depreciation
	14.6 Subsequent costs
	14.7 Property and plant records
	14.8 Disclosure of property, plant and equipment
	14.9 Analysis, interpretation and management decisions
CHAPTER 15 Non‐current assets: revaluation, disposal and other aspects
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	15.1 The revaluation model
	15.2 The impairment test
	15.3 Derecognition of non‐current assets
	15.4 Composite‐rate depreciation
	15.5 Mineral resources
	15.6 Biological assets and agricultural produce
	15.7 Intangible assets
	15.8 Goodwill in a business combination
CHAPTER 16 Liabilities
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	16.1 Liabilities defined
	16.2 Recognition of liabilities 
	16.3 Provisions and contingent liabilities
	16.4 Classification of liabilities
	16.5 Current liabilities 
	16.6 Non‐current liabilities 
	16.7 Analysing liabilities for decision making 
CHAPTER 17 Presentation of financial statements
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	17.1 External reporting requirements
	17.2 Statement of profit or loss and other comprehensive income
	17.3 Statement of financial position
	17.4 Statement of changes in equity
	17.5 Demonstration problem
CHAPTER 18 Statement of cash flows
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	18.1 Purpose of the statement of cash flows
	18.2 General format of the statement of cash flows
	18.3 Concept of cash
	18.4 Classification of cash flow activities
	18.5 Preparing the statement of cash flows — direct method
	18.6 Notes to the statement of cash flows
	18.7 Advanced issues
	18.8 Comprehensive example
	18.9 Limitations of the statement of cash flows
CHAPTER 19 Analysis and interpretation of financial statements
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	19.1 Sources of financial information
	19.2 The need for analytical techniques
	19.3 Percentage analysis
	19.4 Ratio analysis
	19.5 Some important relationships
	19.6 Analysis using cash flows
	19.7 Limitations of financial analysis
	19.8 The impact of capital markets research on the role of financial statement analysis
EULA