Efnisyfirlit

• Cover
• Title page
• Copyright
• Brief contents
• Contents
• Chapter 1 Decision making and the role of accounting
• Introduction
• 1.1 The dynamic environment of accounting
• 1.2 Decisions in everyday life
• Steps in decision making
• 1.3 Economic decisions
• 1.4 The nature of accounting
• Accounting defined
• 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
• What is management accounting?
• What is financial accounting?
• Management accounting versus financial accounting
• 1.9 Accounting as a profession — Australian perspective
• 1.10 Public accounting versus commercial accounting
• Public accounting
• Accountants in commerce and industry
• Public sector and not‐for‐profit accounting
• 1.11 Ethics and accounting
• Ethics in business
• Ethics and professional accounting bodies
• Ethics in practice
• Concept check
• Key terms
• Discussion questions
• Exercises
• Decision analysis
• Critical thinking
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 2 Financial statements for decision making
• Introduction
• 2.1 Types of business entities
• 2.2 Management functions
• Role of managers
• 2.3 Basic financial statements
• The statement of financial position
• The statement of financial performance
• The statement of changes in equity
• The statement of cash flows
• 2.4 Assumptions made and characteristics of information
• The accounting entity assumption
• The accrual basis assumption
• The going concern assumption
• The reporting period
• Fundamental qualitative characteristics
• Enhancing qualitative characteristics
• The concept of materiality
• Cost constraints
• 2.5 The effects of transactions on the accounting equation and financial statements
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 3 Recording transactions
• Introduction
• 3.1 Transactions
• Types of transactions
• Transactions of a business entity
• Source documents
• 3.2 The accounting cycle
• The ledger account
• Account formats
• Accounts commonly used
• Accounts: statement of financial position
• Accounts: statement(s) of financial performance
• General ledger
• Chart of accounts
• 3.3 Double‐entry accounting
• Debit and credit rules
• Normal account balances
• Expanded accounting cycle
• 3.4 General journal
• Recording transactions in a journal
• Posting from journal to ledger
• Illustrative example of journal and ledger
• 3.5 Trial balance
• Limitations of the trial balance
• Correcting errors
• Use of dollar signs and decimal points
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Ethics and governance
• Financial analysis
• Appendix
• References
• Acknowledgements
• Chapter 4 Adjusting the accounts and preparing financialstatements
• Introduction
• 4.1 Measurement of profit
• Cash basis
• Accrual basis
• 4.2 The accounting cycle — expansion to include adjusting entries
• The need for adjusting entries
• 4.3 Classification of adjusting entries
• Adjusting entries for deferrals
• Adjusting entries for accruals
• 4.4 Adjusted trial balance
• Preparation of financial statements
• 4.5 Distinguishing current and non-current assets and liabilities
• Current assets
• Non-current assets
• Current liabilities
• Non-current or long-term liabilities
• 4.6 Preparing financial statements from a worksheet
• Preparation of the worksheet
• Preparation of financial statements
• 4.7 Financial statements and decision making
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 5 Completing the accounting cycle — closing and reversing entries
• Introduction
• 5.1 The complete accounting cycle
• 5.2 Closing temporary accounts
• 5.3 Using the worksheet to record adjusting entries
• Recording adjusting entries
• 5.4 The closing process
• Closing the income (including revenue) accounts
• Closing the expense accounts
• Closing the Profit or Loss Summary account
• Closing the Drawings account
• Account balances after the closing process
• The post‐closing trial balance
• 5.5 Accrual entries in subsequent periods
• Reversing entries
• 5.6 Accounting procedures applicable to a partnership or a company
• Accounting for a partnership
• Accounting for a company
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Financial analysis
• Reference
• Acknowledgements
• Chapter 6 Accounting for retailing
• Introduction
• 6.1 Inventory
• Retail business operations
• 6.2 Condensed statement of financial performance for a retailer
• 6.3 Accounting for sales transactions, including GST
• Retailing and the goods and services tax
• Tax invoices
• Adjustment notes
• Accounting for sales transactions
• Sales returns and allowances
• Cash (settlement) discounts
• Trade discounts
• Freight outwards
• 6.4 Accounting for purchases and cost of sales
• Perpetual inventory system
• Periodic inventory system
• Perpetual and periodic inventory systems contrasted
• 6.5 End of period processes
• Illustration of worksheets in retail businesses
• Perpetual inventory system
• Periodic inventory system
• 6.6 Detailed statement of financial performance for a retailer
• 6.7 Net price method and settlement discounts
• 6.8 Profitability analysis for decision making
• Gross profit ratio
• Profit margin
• Expenses to sales ratio
• Inventory turnover
• Ratios illustrated
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 7 Accounting systems
• Introduction
• 7.1 Operation and development of an accounting system
• Operation of an accounting system
• Converting data to information
• Development of an accounting system2
• Important considerations in developing an accounting system
• 7.2 Internal control systems
• Internal control systems defined
• Principles of internal control systems
• Limitations of internal control systems
• 7.3 Accounting systems — subsidiary ledgers
• Control accounts and subsidiary ledgers
• 7.4 Accounting systems — special journals
• Sales journal
• Purchases journal
• Cash receipts journal
• Cash payments journal
• Use of the general journal
• 7.5 Abnormal balances in subsidiary ledgers
• Account set‐offs
• Demonstration problem
• 7.6 Accounting software
• Electronic spreadsheets
• General ledger programs
• Computerised accounting — advantages and disadvantages
• 7.7 Accounting cycle — manual and computerised
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 8 Partnerships: formation, operation and reporting
• Introduction
• 8.1 Partnership defined
• 8.2 Advantages and characteristics of a partnership
• Characteristics of a partnership
• 8.3 Partnership agreement
• 8.4 Accounting for a partnership
• Method 1. Capital accounts that include profits and losses
• Method 2. Fixed capital accounts
• 8.5 Accounting for the formation of a partnership
• 8.6 Allocation of partnership profits and losses
• Fixed ratio
• Ratio based on capital balances
• Fixed ratio after allowing for interest and salaries
• 8.7 Drawings and loans made by partners
• Drawings
• Loans or advances by partners
• 8.8 Financial statements for a partnership
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 9 Companies: formation and operations
• Introduction
• 9.1 Types of companies
• Limited companies
• Unlimited companies
• No‐liability companies
• Special companies
• Advantages and disadvantages of the corporate entity
• 9.2 Forming a company
• The certificate of registration
• The prospectus
• Administering a company
• 9.3 Categories of equity in a company
• Share capital
• Retained earnings
• Other reserves
• 9.4 Accounting for share issues
• Private share placements
• Public share issue, payable in full on application
• Public share issue, payable by instalments
• Undersubscription and oversubscription
• Rights issue of shares
• Bonus share issues
• Formation costs and share issue costs
• Preference shares
• 9.5 Dividends
• Cash dividends
• Preference dividends
• Share dividends
• Share splits
• Comparison of share dividends and share splits
• 9.6 Reserves
• Creation of reserves
• Disposal of reserves
• 9.7 Income tax
• 9.8 Preparing the financial statements
• Illustrative example: preparation of financial statements
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Financial analysis
• References
• Acknowledgements
• Chapter 10 Regulation and the Conceptual Framework
• Introduction
• 10.1 Regulation and development of accounting standards
• Brief history of regulation
• Australian Securities and Investments Commission
• Australian Securities Exchange
• International Accounting Standards Board (IASB)
• The IFRS Interpretations Committee
• Financial Accounting Standards Board (FASB)
• 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
• Fundamental characteristics
• Enhancing qualitative characteristics
• The cost constraint on relevant, faithfully representative information
• 10.6 Definitions of elements in financial statements
• Liabilities in the Conceptual Framework
• Equity in the Conceptual Framework
• Income in the Conceptual Framework
• Expenses in the Conceptual Framework
• 10.7 Recognition of the elements
• Element recognition in the Conceptual Framework
• Revenue from contracts with customers
• Expense recognition in the Conceptual Framework
• 10.8 Measurement
• Concepts of capital
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• International issues in accounting
• Financial analysis
• References
• Acknowledgements
• Chapter 11 Cash management and control
• Introduction
• 11.1 Cash defined
• 11.2 Control of cash
• Control of cash receipts
• Control of cash payments
• 11.3 Bank accounts and reconciliation
• Cheque accounts
• Electronic funds transfer (EFT)
• The bank statement
• Bank reconciliation
• 11.4 The petty cash fund
• Establishing the fund
• Making payments from the fund
• Reimbursing the fund
• 11.5 Cash budgeting
• Need for cash budgeting
• Preparation of a cash budget
• 11.6 Cash management
• Principles of cash management
• 11.7 Analysing adequacy of cash flows
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Ethics and governance
• Financial analysis
• Reference
• Acknowledgements
• Chapter 12 Receivables
• Introduction
• 12.1 Types of receivables
• Accounts receivable
• Other receivables
• 12.2 Accounts receivable (trade debtors)
• Recognition of accounts receivable
• Valuation of accounts receivable
• 12.3 Bad and doubtful debts
• Allowance method of accounting for bad debts
• Estimating doubtful debts
• Writing off bad debts
• Recovery of an account written off
• Direct write‐off method
• Demonstration problem
• 12.4 Management and control of accounts receivable
• Credit policies
• Monitoring credit policies
• Internal control of accounts receivable
• Disposal of accounts receivable
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 13 Inventories
• Introduction
• 13.1 Determining the cost of inventory on hand
• Performing a stocktake
• Transfer of ownership
• Goods on consignment
• The cost of inventory
• 13.2 Assignment of cost to ending inventory and cost of sales — periodic system
• Specific identification method — periodic
• First‐in, first‐out (FIFO) method — periodic
• Last‐in, first‐out (LIFO) method — periodic
• Weighted average method — periodic
• Comparison of costing methods
• Consistency in using a costing method
• 13.3 Costing methods in the perpetual inventory system
• First‐in, first‐out method
• Last‐in, first‐out method
• Moving average method
• 13.4 Comparison of inventory systems
• 13.5 The lower of cost and net realisable value rule
• 13.6 Sales returns and purchases returns
• Returns using the first‐in, first‐out method
• 13.7 Inventory errors
• 13.8 Estimating inventories
• Retail inventory method
• Gross profit method
• 13.9 Presentation in financial statements
• 13.10 Effect of costing methods on decision making
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Financial analysis
• References
• Acknowledgements
• Chapter 14 Non‐current assets: acquisition and depreciation
• Introduction
• 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
• The nature of depreciation
• Determining the amount of depreciation
• Depreciation methods
• Comparison of depreciation methods
• Revision of depreciation rates and methods
• Accumulated depreciation does not represent cash
• 14.6 Subsequent costs
• Day‐to‐day repairs and maintenance
• Overhauls and replacement of major parts
• Leasehold improvements
• Spare parts and service equipment
• 14.7 Property and plant records
• 14.8 Disclosure of property, plant and equipment
• 14.9 Analysis, interpretation and management decisions
• Analysis and interpretation
• Management decisions
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 15 Non-current assets: revaluation, disposal and other aspects
• Introduction
• 15.1 The revaluation model
• Initial revaluation increases
• Initial revaluation decreases
• Reversals of increases and decreases
• 15.2 The impairment test
• 15.3 Derecognition of non-current assets
• Scrapping non-current assets
• Sale of non-current assets
• Derecognition of revalued assets
• Exchanging non-current assets
• 15.4 Composite-rate depreciation
• 15.5 Mineral resources
• Exploration and evaluation costs
• Development costs, construction costs and inventories
• Amortisation
• Depreciation of related construction assets
• 15.6 Biological assets and agricultural produce
• 15.7 Intangible assets
• Separately acquired intangibles
• Internally generated intangibles
• Intangibles subsequent to initial recognition
• Amortisation
• Patents and research and development costs
• Copyrights
• Trademarks and brand names
• Franchises
• 15.8 Goodwill in a business combination
• Concept check
• Key terms
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Critical thinking
• Communication and leadership
• Financial analysis
• References
• Acknowledgements
• Chapter 16 Liabilities
• Introduction
• 16.1 Liabilities defined
• Obligation
• Transfer of an economic resource
• Present obligation as a result of past events
• 16.2 Recognition of liabilities
• Why recognition is important
• Criteria for recognition
• 16.3 Provisions and contingent liabilities
• Nature of provisions
• Items excluded from provisions — future costs
• Contingent liabilities
• 16.4 Classification of liabilities
• Need for classification
• Basis of classification
• Categories
• 16.5 Current liabilities
• Accounts payable (trade creditors)
• Bills payable
• Employee benefits
• Warranties
• Onerous contracts
• GST payable
• 16.6 Non‐current liabilities
• The types of non‐current liabilities
• Debentures
• Other non‐current liabilities
• Why finance through long‐term debt?
• 16.7 Analysing liabilities for decision making
• Liquidity ratios
• Financial stability ratios
• Illustration of ratios
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 17 Presentation of financial statements
• Introduction
• 17.1 External reporting requirements
• Annual financial report
• Concise report
• Interim financial report
• General requirements for the annual report
• 17.2 Statement of profit or loss and other comprehensive income
• Disclosure of income and expenses
• 17.3 Statement of financial position
• 17.4 Statement of changes in equity
• 17.5 Demonstration problem
• Solution
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 18 Statement of cash flows
• Introduction
• 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
• Cash flows from operating activities
• Cash flows from investing activities
• Cash flows from financing activities
• Summary of classification
• 18.5 Preparing the statement of cash flows — direct method
• Analysis of cash and other records
• Analysis of financial statements
• 18.6 Notes to the statement of cash flows
• Items included in cash and cash equivalents
• Reconciliation note of profit and cash flows from operating activities (indirect method)
• Other notes
• 18.7 Advanced issues
• Impact of the GST
• Trade accounts receivable
• Trade accounts payable and discount received
• Non-trade receivables and payables
• Bills receivable and bills payable
• Short-term investments
• Dividends
• Income tax
• 18.8 Comprehensive example
• Step 1. Cash from operating activities — direct method
• Step 2. Cash from investing activities
• Step 3. Cash from financing activities
• Step 4. Net cash increase/decrease
• Step 5. Cash and cash equivalents at beginning and end
• Notes to the statement
• The indirect method of determining net cash from operating activities
• Analysing the statement of cash flows
• 18.9 Limitations of the statement of cash flows
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Chapter 19 Analysis and interpretation of financial statements
• Introduction
• 19.1 Sources of financial information
• 19.2 The need for analytical techniques
• 19.3 Percentage analysis
• Horizontal analysis
• Trend analysis
• Vertical analysis
• 19.4 Ratio analysis
• Profitability ratios
• Liquidity ratios
• Financial stability ratios
• 19.5 Some important relationships
• 19.6 Analysis using cash flows
• Cash sufficiency ratios
• Cash flow efficiency ratios
• 19.7 Limitations of financial analysis
• 19.8 The impact of capital markets research on the role of financial statement analysis
• Concept check
• Key terms
• Case study: Techtopia Pty Ltd
• Discussion questions
• Exercises
• Problems
• Decision analysis
• Communication and leadership
• Ethics and governance
• Financial analysis
• References
• Acknowledgements
• Appendix
• EULA