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Principles of Financial Accounting, 3rd Australian Edition

Principles of Financial Accounting, 3rd Australian Edition

ISBN: ES8-0-730-30229-2


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In its US edition, Accounting Principles has been a market leading introductory accounting textbook for over 25 years. The Australasian adaptation of this highly regarded textbook accentuates its relevance to both students and academics alike with its constructive pedagogical structure, application of accounting to a wider business environment, and clear, easy-to-understand writing style.

As accounting is the language of business, Principles of Financial Accounting, 3rd Edition will teach students the value of accounting information in business and its integral role in business planning and growth.The third edition thoroughly details the steps in the accounting cycle and the accounting process, from recording business transactions through to preparing financial statements, and the reporting requirements under IFRS.Throughout the chapters real company financial information and extracts from annual reports are used to reinforce how accounting information is presented, and the range of business decisions that can be made from accounting information.

The text is ideal for a first course in financial accounting and students studying with this textbook will be equipped with the knowledge and skills required to further their accounting studies.

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Preface xi

How to use this book xii

Lecturer and student resource material xvi

Acknowledgements xviii

Chapter 1 Accounting in action 1

Chapter 2 The recording process 49

Chapter 3 Adjusting the accounts 91

Chapter 4 Completion of the accounting cycle 133

Chapter 5 Accounting for retail operations 179

Chapter 6 Inventories 229

Chapter 7 Accounting information systems 273

Chapter 8 Internal control and cash 323

Chapter 9 Accounting for receivables 363

Chapter 10 Property, plant and equipment; intangible assets and goodwill; mineral resources and biological assets 397

Chapter 11 Current liabilities and payroll accounting 447

Chapter 12 Accounting concepts and principles 483

Chapter 13 Accounting for partnerships 517

Chapter 14 Companies: share capital 561

Chapter 15 Companies: dividends, retained earnings and income reporting 601

Chapter 16 Non-current liabilities 631

Chapter 17 Investments 671

Chapter 18 The statement of cash flows 697

Chapter 19 Financial statement analysis 745

Appendix: Time value of money 793

Glossary 801

Index 813

  • Consideration of sustainability and sustainable business practices
  • Updated in accordance with IFRS’s and changes in the Corporate Framework
  • Integration of current company financial information to illustrate or reiterate key accounting processes and/or chapter content
  • Thorough discussion of financial reporting requirements and presentation, income statements, statement of financial position, statement of cash flow
  • and statements of changes in equity Assumes various end-users of accounting information, discussing the impact of accounting on various aspects of the business
  • End of chapter problems and case studies align to theThreshold Learning Outcomes for accounting and aim to develop competencies in Judgement, Knowledge,Application Skills, Communication &Teamwork and Self-Management
  • Workbook Examples are contained in the BeforeYouGo On feature and require students to complete the example by completing general journals, a trial balance and financial statements
  • General journal entries presented as accounting equations to illustrate how debits and credits affect either assets, liabilities or the equity position of the business, and inflow or outflow of cash into the business
  • Chapter Scene Setter presents an overview of the chapter and will help the student understand the context of the accounting information presented. In many chapters, the Scene Setter is based upon financial information for a real company with a discussion integrated in the chapter
  • Helpful Hint comments in the minor column
  • Before You Go On sections follow each key topic
  • Review it questions prompts the students to review the key point that has been studied. Designed so that students can recognise if they need to read the section again
  • Action Plans - Problem-solving strategies accompany the Before You Go On and Do It exercises and Demonstration Problems in each chapter
  • Accounting in Action Boxes -These applied boxes give students glimpses into the real world of business—including Sustainability, eBusiness, ethics and international business
  • A Comprehensive Problem - Selected chapters feature a problem that pulls together topics students have learned over several chapters
  • Broadening Your Perspective – a series of case studies that focus on financial analysis, interpretation, ethics and research will apply the concepts presented in the chapter