Financial Accounting: An Introduction, 6th ed.
 

Book Title

By: Pauline Weetman
January 2014
Pearson Education
Distributed by Trans-Atlantic Publications Inc.
ISBN: 9780273789253
462 Pages, Illustrated
$97.50 Paper Original


Description:

The sixth edition retains all of the classic features that have contributed to the book’s success: clarity of expression, the focus on the accounting equation, student activities and real-life commentaries running through each chapter, and the inclusion of the Safe and Sure Annual Report as an example of a listed company.

Financial Accounting: an Introduction is aimed at first-level undergraduates on business studies degrees taking introductory financial accounting classes; first-level specialist accounting undergraduate students; introductory core accounting for MBA and postgraduate specialist Masters students (e.g. finance, actuarial studies), focusing on analysis through the accounting equation and a questioning approach to problem solving; and professional courses where accounting is introduced for the first time.

Key features:

  • Fully up-to-date with International Financial Reporting Standards, IFRS
  • Experience-driven conversations between two managers are included throughout, providing a practical examination of real life scenarios
  • New coverage on Corporate Governance
  • Focuses on specific knowledge outcomes, with end-of-chapter self-evaluation
  • Questions are graded to test student understanding
  • New case studies containing examples from real-world companies

Contents:

Table of Contents

Preface to the sixth edition

Guided tour of the book

Publisher’s acknowledgements

Part 1 A conceptual framework: setting the scene

Chapter 1 Who needs accounting?

Real World Case

Learning outcomes

1.1 Introduction

1.2 The development of a conceptual framework

1.3 Framework for the preparation and presentation of financial statement

1.4 Types of business entity

1.5 Users and their information needs

1.6 General purpose or specific purpose financial statements?

1.7 Stewards and agents

1.8 Who needs financial statement?

1.9 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: introduction to the terminology of business transactions.

Test your understanding

Chapter 2 A systematic approach to financial reporting: the accounting equation

Real World Case

Learning outcomes

2.1 Introduction

2.2 The accounting equation

2.3 Defining assets

2.4 Examples of assets

2.5 Recognition of assets

2.6 Defining liabilities

2.7 Examples of liabilities

2.8 Recognition of liabilities

2.9 Defining the ownership interest

2.10 Recognition

2.11 Changes in the ownership interest

2.12 Assurance for users of financial statement

2.13 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: debit and credit bookkeeping

Test your understanding

Chapter 3 Financial statements from the accounting equation

Real World Case

Learning outcomes

3.1 Introduction

3.2 Who is in charge of the accounting system?

3.3 The accounting period

3.4 The statement of financial position (balance sheet)

3.5 the income statement (profit and loss account)

3.6 The statement of cash flows

3.7 Usefulness of financial statement

3.8 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: using the accounting equation to analyse transaction

Test your understanding

Chapter 4 Ensuring the quality of financial statements

Real World Case

Learning outcomes

4.1 Introduction

4.2 Qualitative characteristics of financial statements

4.3 Measurement in financial statements

4.4 Views of prudence

4.5 Regulation of financial reporting

4.6 Reviewing published financial statements

4.7 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Part 2 Reporting the transactions of a business

Chapter 5 Accounting information for service businesses

Real World Case

Learning outcomes

5.1 Introduction

5.2 Analysing transactions using the accounting equation

5.3 Illustration of accounting for a service business

5.4 A process for summarising the transactions: a spreadsheet

5.5 Financial statements as a means of communication

5.6 Summary

Questions

A Test your understanding

B Application

Supplement: recording transactions in ledger accounts – a service business

Test your understanding

Chapter 6 Accounting information for trading businesses

Real World Case

Learning outcomes

6.1 Introduction

6.2 Goods purchased for resale

6.3 Manufacturing goods for resale

6.4 Illustration of accounting for a trading business

6.5 A process for summarising the transactions: a spreadsheet

6.6 Financial statement of M. Carter, wholesaler

6.7 Summary

Questions

A Test your understanding

B Application

Supplement: recording transactions in ledger accounts: a trading business

Test your understanding

Part 3 Recognition in financial statements

Chapter 7 Published financial statements

Real World Case

Learning outcomes

7.1 Introduction

7.2 International influences

7.3 Accounting framework

7.4 Statement of financial position (balance sheet)

7.5 Income statement (profit and loss account)

7.6 Statement of cash flows

7.7 Group structure of companies

7.8 Group financial statements

7.9 Small and medium-sized entities (SMEs)

7.10 Beyond the annual report

7.11 Summary

Further reading

Useful websites

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Suppleemnt 7.1 information to be presented on the face of the balance sheet, as required by IAS 1

Supplement 7.2: balance sheet format 1, as prescribed by the Companies Act 2006

Supplement 7.3: information to be presented on the face of the Income Statement as required by IAS 1

Supplement 7.4: UK Companies Act profit and loss account format 1 – list of contents

Chapter 8 Non-current (fixed) assets

Real World Case

Learning outcomes

8.1 Introduction

8.2 Definitions

8.3 Recognition

8.4 Users’ needs for information

8.5 Information provided in the financial statements

8.6 Usefulness of published information

8.7 Depreciation: an explanation of its nature

8.8 Reporting non-current (fixed) assets and depreciation in financial statements

8.9 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: recording non-current (fixed) assets and depreciation

Test your understanding

Chapter 9 Current assets

Real World Case

Learning outcomes

9.1 Introduction

9.2 Definitions

9.3 The working capital cycle

9.4 Recognition

9.5 Users’ needs for information

9.6 Information provided in the financial statements

9.7 measurement and recording

9.8 Inventories (stocks) of raw materials and finished goods

9.9 Receivables (debtors)

9.10 Prepayments

9.11 Revenue recognition

9.12 Summary

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: bookkeeping entries for 9a0 bad and doubtful debts; and (b) prepayments

Test your understanding

Chapter 10 Current liabilities

Real World Case

Learning outcomes

10.1 Introduction

10.2 Definitions

10.3 Recognition

10.4 Users’ needs for information

10.5 Information provided in the finacial statements

10.6 Measurement and recording

10.7 Accruals and the matching concept

10.8 Liabilities for taxation

10.9 Summary

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: bookkeeping entries for accruals

Test your understanding

Chapter 11 Provisions and non-current (long-term) liabilities

Real World Case

Learning outcomes

11.1 Introduction

11.2 Users’ needs for information

11.3 Information provided in the financial statements

11.4 Provisions

11.5 Deferred income

11.6 Non-current (long-term) liabilities

11.7 Summary

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: bookkeeping entries for provisions and deferred income

Test your understanding

Chapter 12 Ownership interest

Real World Case

Learning outcomes

12.1 Introduction

12.2 Definition and recognition

12.3 Presentation of ownership interest

12.4 Statement of changes in equity

12.5 Users’ needs for information

12.6 Information provided in the financial statements

12.7 Dividends

12.8 Issue of further shares on the Stock Exchange

12.9 Summary

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Supplement: a spreadsheet for adjustment to a trial balance at the end of the accounting period

Test your understanding

Part 4 Analysis and issues in reporting

Chapter 13 Ratio analysis

Real World Case

Learning outcomes

13.1 Introduction

13.2 A note on terminology

13.3 Systematic approach to ratio analysis

13.4 Investors’ views on risk and return

13.5 Pyramid of ratios

13.6 Use and limitations of ratio analysis

13.7 Worked example of ratio analysis

13.8 Linking ratios to the statement of cash flows

13.9 Combining ratios for interpretation

13.10 Summary

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Chapter 14 Reporting corporate performance

Real World Case

Learning outcomes

14.1 Introduction

14.2 Operating and financial review (OFR) and business review

14.3 Other guidance in analysis

14.4 Segmental information

14.5 off-balance-sheet finance

14.6 Corporate social responsibility

14.7 Corporate governance

14.8 Developing issues: ‘present fairly’ and ‘true and fair view’

14.9 Measurement of value

14.10 Risk reporting

14.11 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Activities for study groups

Notes and references

Chapter 15 Reporting cash flows

Real World Case

Learning outcomes

15.1 Introduction

15.2 Cash and cash equivalents

15.3 The direct method and the indirect method

15.4 Preparing a statement of cash flows: the indirect method

15.5 Preparing a statement of cash flows: the direct method

15.6 Interpretation of cash flow information

15.7 Illustration

15.8 Summary

Further reading

Questions

A Testing your understanding

B Application

C Problem solving and evaluation

Notes and references