Fundamentals of Accounting and Financial Management

Half Title Page
Title Page
Imprint Page
Brief Contents
Contents
Guide to the text
Guide to the online resources
Preface
About the authors
Acknowledgements
Chapter 1: Introduction to financial accounting
	Chapter overview
	1.1 Use and preparation of accounting
	1.2 Financial accounting
	1.3 Who uses financial accounting information?
	1.4 The people involved in financial accounting
	1.5 Accrual accounting
	1.6 The key financial statements
	1.7 Accounting principles and the use of accounting information
	1.8 Framework for the preparation and presentation of financial statements
	1.9 Qualitative characteristics of useful financial information
	1.10 Financial statement concepts
	1.11 Is accounting really important?
	1.12 Financial management and the finance function
	1.13 Do you really need a knowledge of accounting and financial management?
Chapter 2: The balance sheet and the income statement
	Chapter overview
	2.1 Introduction to the balance sheet
	2.2 Explanations of the three balance sheet categories: assets, liabilities and equity
	2.3 Some preliminary analysis of the Sound and Light balance sheet
	2.4 A closer look at the balance sheet
	2.5 Maintaining the accounting equation
	2.6 Managers and the balance sheet
	2.7 The income statement
	2.8 Connecting balance sheets and income statements
	2.9 A closer look at the income statement
	2.10 Capital markets, managers and performance evaluation
	Appendix to Chapter 2: Background: sole traders, partnerships, companies and financing
		A2.1 Four kinds of business organisation
		A2.2 Business financing
Chapter 3: Recording accounting transactions
	Chapter overview
	3.1 Transaction analysis
	3.2 Transaction analysis extended
	3.3 Recording transactions: double-entry bookkeeping
	3.4 More about accounts
	3.5 Debits and credits extended
	3.6 Arranging accounts on the balance sheet
	3.7 Journal entries
	3.8 Cash versus accrual accounting revisited
	Appendix to Chapter 3: Examples of how debits and credits work
Chapter 4: Accrual accounting adjustments
	Chapter overview
	4.1 Financial accounting’s transactional filter
	4.2 Conceptual foundation of accrual accounting
	4.3 Accrual accounting adjustments
	4.4 The financial period
	4.5 Contra accounts
	4.6 Managers and accrual accounting assumptions
Chapter 5: Annual reports, regulation, internal control, ethics and auditing
	Chapter overview
	5.1 The annual report and financial statements
	5.2 Accounting regulation in Australia
	5.3 International financial reporting standards
	5.4 Background to accounting policy choices
	5.5 Internal control
	5.6 Internal control of cash
	5.7 Disclosure of internal control in annual reports
	5.8 The nature of a profession and professional ethics
	5.9 The external auditor’s report
	5.10 Independence of the auditor
Chapter 6: Financial statement analysis
	Chapter overview
	6.1 Investment and relative return
	6.2 Introduction to financial statement analysis
	6.3 Common size statements
	6.4 Financial statement ratio analysis
	6.5 Financial statement ratio analysis example
	6.6 ‘What if’ effects on ratios
	6.7 Measuring a manager’s performance
Chapter 7: Reporting and managing cash flows
	Chapter overview
	7.1 The purpose of cash flow analysis
	7.2 Overview of the statement of cash flows
	7.3 Interpreting a statement of cash flows (direct method)
	7.4 Working capital management
	7.5 Cash flow cycle
	7.6 Cash flow forecasting
	7.7 Cash budget
	7.8 Capital investment analysis
	7.9 Using Excel for NPV calculations
	Appendix to Chapter 7: Future cash flows: present value analysis
		A7.1 Future cash flows
		A7.2 Interest and the time value of money
Chapter 8: Extensions to financial reporting: assets, liabilities, capital markets, contracts and accounting standards
	Chapter overview
	8.1 Framework for the preparation and presentation of financial statements
	8.2 Assets and liabilities: valuation and measurement
	8.3 Capital markets
	8.4 Contracts and financial accounting information
	8.5 Managers and financial accounting standards
Chapter 9: Sustainability reporting
	Chapter overview
	9.1 What is sustainability reporting?
	9.2 What information is reported in sustainability reports?
	9.3 Do stakeholders require more than financial reporting?
	9.4 Why do organisations produce sustainability reports?
	9.5 Criteria for sustainability reporting
	9.6 Alignment with Sustainable Development Goals
	9.7 Trends in sustainability reporting
	9.8 Integrated reporting
	9.9 Consistency of sustainability reporting
Chapter 10: Record-keeping
	Chapter overview
	10.1 The importance of good records
	10.2 Accounting’s ‘books’ and records
	10.3 Illustrative example
	10.4 Multi-column worksheets
	10.5 Illustrative example
	10.6 Electronic commerce
	10.7 Managers, bookkeeping and control
Chapter 11: Accounts receivable and further record-keeping
	Chapter overview
	11.1 Receivables
	11.2 Control accounts and contra accounts
	11.3 Accounts receivable and contra accounts
	11.4 Illustrative example
	11.5 Trade discount and cash discount
	11.6 Detailed recording using special journals, subsidiary ledgers and control accounts
	11.7 Prime entry records: special journals
	11.8 Subsidiary ledgers and control accounts
	11.9 Operation of special journals and subsidiary ledgers
	11.10 Role of general journal and general ledger
	11.11 Bank reconciliations3
	11.12 Performing a bank reconciliation from information in cash journals
Chapter 12: Inventory
	Chapter overview
	12.1 Inventory control
	12.2 Accounting entries for perpetual and periodic inventory
	12.3 Inventory valuation and cost of goods sold
	12.4 More about inventory cost flow assumptions
	12.5 An example: Meeix Ltd
	12.6 Lower of cost and net realisable value rule
	12.7 Standard costs
	12.8 Disclosure of inventory accounting policies
	12.9 Managers and the valuation of inventory
Chapter 13: Noncurrent assets
	Chapter overview
	13.1 The cost of an asset: basic components
	13.2 Depreciation of assets and depreciation expense
	13.3 Depreciation bases and methods
	13.4 Depreciation example
	13.5 Gains and losses on noncurrent asset disposals
	13.6 Asset revaluations
	13.7 Asset impairment
	13.8 Intangible assets
	13.9 Goodwill
	13.10 Finance leases
	13.11 Managers and noncurrent assets
Chapter 14: Liabilities
	Chapter overview
	14.1 What is a liability?
	14.2 General measurement principles
	14.3 Financial statement presentation of liabilities
	14.4 Payables
	14.5 Interest-bearing liabilities: short term
	14.6 Interest-bearing liabilities: long term
	14.7 Tax liabilities
	14.8 Provisions
	14.9 Contingent liabilities
	14.10 ‘Off balance sheet’ financing
	14.11 Goods and services tax
Chapter 15: Equity, revenues and expense recognition
	Chapter overview
	15.1 Shareholders’ equity
	15.2 Share capital
	15.3 Reserves
	15.4 Retained profits and dividends
	15.5 Bonus issues and share splits
	15.6 Revenues
	15.7 Revenue recognition
	15.8 The expenses concept: the Framework
	15.9 Statement of profit or loss and other comprehensive income
	15.10 Statement of changes in equity
	15.11 ‘What if’ (effects) analysis
	15.12 Managers, investments and shareholders’ equity and the recognition of revenues and expenses
Chapter 16: The statement of cash flows
	Chapter overview
	16.1 Revision of the statement of cash flows
	16.2 Preparation using the direct method
	16.3 Interpreting a statement of cash flows using the direct method
	16.4 Preparation using the indirect method
	16.5 Interpreting a statement of cash flows using the indirect method
	16.6 Cash flow and the manager
Chapter 17: Measuring and managing organisational performance
	Chapter overview
	17.1 What is performance management?
	17.2 Integrative financial ratio analysis
	17.3 Harvey Norman Holdings Limited: an example company
	17.4 What about non-financial performance measures?
	17.5 Key features of performance measures
	17.6 The balanced scorecard framework
	17.7 Performance management and an analytics mindset
	17.8 Motivating managers and organisational performance
Glossary
Index