Financial accounting and reporting

Cover --
Contents --
Preface --
Publisher\'s acknowledgements --
PART 1 Preparation of financial statements --
CHAPTER 1 Accounting and reporting on a cash flow basis --
1.1 Introduction --
1.2 Shareholders --
1.3 What skills does an accountant require in respect of external reports? --
1.4 Managers --
1.5 What skills does an accountant require in respect of internal reports? --
1.6 Procedural steps when reporting to internal users --
1.7 Agency costs 2 --
1.8 Illustration of periodic financial statements prepared under the cashflow concept to disclose realised operating cash flows --
1.9 Illustration of preparation of statement of financial position --
1.10 Treatment of non-current assets in the cash flow model --
1.11 What are the characteristics of these data that make them reliable? --
1.12 Reports to external users --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 2 Accounting and reporting on an accrual accounting basis --
2.1 Introduction --
2.2 Historical cost convention --
2.3 Accrual basis of accounting --
2.4 Mechanics of accrual accounting --
adjusting cash receipts and payments --
2.5 Reformatting the statement of financial position --
2.6 Accounting for the sacrifice of non-current assets --
2.7 Published statement of cash flows --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 3 Preparation of financial statements of comprehensive income, changes in equity and financial position --
3.1 Introduction --
3.2 Preparing an internal statement of income from a trial balance --
3.3 Reorganising the income and expenses into one of the formats required for publication --
3.4 Format 1: classification of operating expenses and other incomeby function --
3.5 Format 2: classification of operating expenses according to their nature --
3.6 Other comprehensive income. 3.7 How non-recurring or exceptional items can affect operating income --
3.8 How decision-useful is the statement of comprehensive income? --
3.9 Statement of changes in equity --
3.10 The statement of financial position --
3.11 The explanatory notes that are part of the financial statements --
3.12 Has prescribing the formats meant that identical transactions are reported identically? --
3.13 Fair presentation --
3.14 What does an investor need in addition to the primary financialstatements to make decisions? --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 4 Annual Report: additional financial disclosures --
4.1 Introduction --
4.2 IAS 10 Events after the Reporting Period 1 --
4.3 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 2 --
4.4 What do segment reports provide? --
4.5 IFRS 8 Operating Segments 3 --
4.6 Benefits and continuing concerns following the issue of IFRS 8 --
4.7 Discontinued operations --
IFRS 5 Non-current Assets Held for Sale andDiscontinued Operations 6 --
4.8 Held for sale --
IFRS 5 Non-current Assets Held for Sale andDiscontinued Operations --
4.9 IAS 24 Related Party Disclosures 7 --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 5 Statements of cash flows --
5.1 Introduction --
5.2 Development of statements of cash flows --
5.3 Applying IAS 7 (revised) Statements of Cash Flows --
5.4 Step approach to preparation of a statement of cash flows --
indirect method --
5.5 Additional notes required by IAS 7 --
5.6 Analysing statements of cash flows --
5.7 Approach to answering questions with time constraints --
5.8 Preparing a statement of cash flows when no statement of income is available --
5.9 Critique of cash flow accounting --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
PART 2 Income and asset value measurement systems. CHAPTER 6 Income and asset value measurement: an economist\'s approach --
6.1 Introduction --
6.2 Role and objective of income measurement --
6.3 Accountant\'s view of income, capital and value --
6.4 Critical comment on the accountant\'s measure --
6.5 Economist\'s view of income, capital and value --
6.6 Critical comment on the economist\'s measure --
6.7 Income, capital and changing price levels --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
Bibliography --
CHAPTER 7 Accounting for price-level changes --
7.1 Introduction --
7.2 Review of the problems of historical cost accounting (HCA) --
7.3 Inflation accounting --
7.4 The concepts in principle --
7.5 The four models illustrated for a company with cash purchases and sales --
7.6 Critique of each model --
7.7 Operating capital maintenance --
a comprehensive example --
7.8 Critique of CCA statements --
7.9 The ASB approach --
7.10 The IASC/IASB approach --
7.11 Future developments --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
Bibliography --
CHAPTER 8 Revenue recognition --
8.1 Introduction --
8.2 IAS 18 Revenue --
8.3 The issues involved in developing a new standard --
8.4 The challenges under both IAS 18 and IFRS 15 --
8.5 IFRS 15 Revenue from Contracts with Customers --
8.6 Five-step process to identify the amount and timing of revenue --
8.7 Disclosures --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
PART 3 Regulatory framework --
an attempt to achieve uniformity --
CHAPTER 9 Financial reporting --
evolution of global standards --
9.1 Introduction --
9.2 Why do we need financial reporting standards? --
9.3 Why do we need standards to be mandatory? --
9.4 Arguments in support of standards --
9.5 Arguments against standards --
9.6 Standard setting and enforcement by the Financial Reporting Council(FRC) in the UK --
9.7 The International Accounting Standards Board. 9.8 Standard setting and enforcement in the European Union (EU) 8 --
9.9 Standard setting and enforcement in the US --
9.10 Advantages and disadvantages of global standards for publiclyaccountable entities --
9.11 How do reporting requirements differ for non-publicly accountable entities? --
9.12 IFRS for SMEs --
9.13 Why have there been differences in financial reporting? --
9.14 Move towards a conceptual framework --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 10 Concepts --
evolution of an international conceptual framework --
10.1 Introduction --
10.2 Different countries meant different financial statements --
10.3 Historical overview of the evolution of financial accounting theory --
10.4 IASC Framework for the Preparation and Presentation of FinancialStatements --
10.5 Conceptual Framework for Financial Reporting 2010 --
10.6 Chapter 4 content --
10.7 A Review of the Conceptual Framework for Financial Reporting --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 11 Ethical behaviour and implications for accountants --
11.1 Introduction --
11.2 The meaning of ethical behaviour --
11.3 The accounting standard-setting process and ethics --
11.4 The IFAC Code of Ethics for Professional Accountants --
11.5 Implications of ethical values for the principles versus rules-based approaches to accounting standards --
11.6 Ethics in the accountant\'s work environment --
a research report --
11.7 Implications of unethical behaviour for stakeholders using the financial reports --
11.8 The increasing role of whistle-blowing --
11.9 Legal requirement to report --
national and international regulation --
11.10 Why should students learn ethics? --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
PART 4 Statement of financial position --
equity, liability and asset measurement and disclosure. CHAPTER 12 Share capital, distributable profits and reduction of capital --
12.1 Introduction --
12.2 Common themes --
12.3 Total owners\' equity: an overview --
12.4 Total shareholders\' funds: more detailed explanation --
12.5 Accounting entries on issue of shares --
12.6 Creditor protection: capital maintenance concept --
12.7 Creditor protection: why capital maintenance rules are necessary --
12.8 Creditor protection: how to quantify the amounts available to meet creditors\' claims --
12.9 Issued share capital: minimum share capital --
12.10 Distributable profits: general considerations --
12.11 Distributable profits: how to arrive at the amount using relevant accounts --
12.12 When may capital be reduced? --
12.13 Writing off part of capital which has already been lost and is not represented by assets --
12.14 Repayment of part of paid-in capital to shareholders or cancellation of unpaid share capital --
12.15 Purchase of own shares --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 13 Liabilities --
13.1 Introduction --
13.2 Provisions --
a decision tree approach to their impact on the statement of financial position --
13.3 Treatment of provisions --
13.4 The general principles that IAS 37 applies to the recognitionof a provision --
13.5 Management approach to measuring the amount of a provision --
13.6 Application of criteria illustrated --
13.7 Provisions for specific purposes --
13.8 Contingent liabilities --
13.9 Contingent assets --
13.10 ED IAS 37 Non-financial Liabilities --
13.11 ED/2010/1 Measurement of Liabilities in IAS 37 11 --
Summary --
REVIEW QUESTIONS --
EXERCISES --
References --
CHAPTER 14 Financial instruments --
14.1 Introduction --
14.2 Financial instruments --
the IASB\'s problem child --
14.3 IAS 32 Financial Instruments: Disclosure and Presentation 1.