Description: As the International Accounting Standards Board (IASB) makes progress towards widespread acceptance and use of its standards and practices, the need to become familiar with the IASB standards is rapidly increasing. Melville provides the tools for understanding the international standards and offers expert guidance on how to implement them. This second edition brings the book completely up-to-date and covers all international standards issued as at 1 January 2009. Features of the book include interpretive guidance, coverage of every key International Financial Reporting Standard (IFRS) and International Accounting Standard (IAS), together with an unparalleled level of student interactivity and assessment. The book provides a unique practical introduction tothe international standards, outlining how these standards are used on a daily basis by companies in the preparation of their financial statements. The author examines the recognition, measurement, presentation and disclosure requirements of each IFRS and IAS and every attempt has been made to explain the standards as clearly and concisely as possible. Examples and practice questions are provided throughout the book to aid student understanding and to provide a framework for grasping the key aspects of this complex and fast-moving subject. INDICE: Preface ix Acknowledgements x List of international standards xi Part 1 INTRODUCTION TO FINANCIAL REPORTING 1 The regulatory framework 3 The need for regulation 4 Sources of regulation 4 Generally accepted accounting practice 6 The International Accounting Standards Board (IASB) 7 The standard-setting process 9 The structure of an international standard 9 The purpose of accounting standards 10 Worldwide use of international standards 11 First-time adoption of international standards 11 2 The IASB conceptual framework 17 Purpose and scope of the IASB Framework18 Objective of financial statements 19 Underlying assumptions 21 Qualitative characteristics of financial statements 21 Elements of financial statements 24 Recognition of the elements of financial statements 26 Measurement of the elements of financial statements 27 Concepts of capital and capital maintenance28 3 Presentation of financial statements 35 Objective of financial statements 36 Components of financial statements 36 Generalfeatures 37 Structure and content of financial statements39 The statement of financial position 40 The statement of comprehensive income 45 The statement of changes in equity 48 The notes to the financial statements 50 Interim financial reporting 51 4 Accounting policies, accounting estimates and errors 59 Accounting policies 59 Accounting estimates 64 Prior period errors 64 Part 2 FINANCIAL REPORTING IN PRACTICE 5 Property, plant and equipment 73 Definition of property, plant and equipment74 Recognition of property, plant and equipment 74Initial measurement of property, plant and equipment 77 Subsequent measurement of property, plant and equipment 78 Depreciation 80 Disclosure requirements 84 Borrowing costs 85 Government grants 88 Investment property 91 6 Intangibleassets 98 Definition of an intangible asset 99 Initial recognition and measurement of intangible assets 100 Subsequent measurement of intangible assets 104Amortisation of intangible assets 106 Derecognition 108 Disclosure requirements 108 Goodwill 109 IFRS3 Business Combinations 110 7 Impairment of assets 116Indications of impairment 117 Recoverable amount 118 Recognition and measurement of an impairment loss 121 Cash-generating units 122 Reversal of impairmentlosses 126 Disclosure requirements 127 8 Non-current assets held for sale anddiscontinued operations 132 Classification of non-current assets as held for sale 133 Measurement of non-current assets held for sale 135 Presentation of non-current assets held for sale 139 Discontinued operations 140 9 Leases 146 Classification of leases 147 Accounting for operating leases 148 Accounting forfinance leases 148 Disclosure requirements 152 10 Inventories and construction contracts 157 Inventories 158 Cost of inventories 158 Cost formulas 160 Net realisable value 163 Disclosures relating to inventories 164 Construction contracts 165 Contract revenue and costs 166 Recognition of contract revenue and expenses 166 Presentation and disclosure for construction contracts 169 11 Financial instruments 177 Definitions 178 Classification of financial instruments 179 Recognition of financial assets and liabilities 182 Initial measurement offinancial assets and liabilities 182 Subsequent measurement of financial assets182 Subsequent measurement of financial liabilities 186 Disclosure requirements 187 12 Provisions and events after the reporting period 193 Recognition ofa provision 194 Measurement of a provision 196 Application of the recognitionand measurement rules 197 Contingent liabilities and contingent assets 199 Disclosure requirements 200 Scope of IAS37 201 Events after the reporting period201 13 Revenue 207 Definition of revenue 208 Measurement of revenue 208 Recognition of revenue: Sale of goods 209 Recognition of revenue: Rendering of services 210 Recognition of revenue: Interest, royalties and dividends 211 Disclosure requirements 211 Guidance to the implementation of IAS18 212 14 Employee benefits 218 Short-term employee benefits 219 Post-employment benefits 221 Accounting for defined contribution plans 221 Accounting for defined benefit plans222 Other long-term employee benefits 228 Termination benefits 228 15 Taxation in financial statements 233 Current tax 234 Deferred tax 236 The tax base concept 238 IAS12 requirements with regard to deferred tax 243 Disclosure requirements 243 16 Statement of cash flows 248 Cash and cash equivalents 249 Classification of cash flows by activity 250 Interest, dividends and taxes 251 Reporting cash flows from operating activities 252 Disclosures 256 17 Financial reporting in hyperinflationary economies 267 Historical cost accounting and its weaknesses 268 Strengths of historical cost accounting 273 Alternatives to historical cost accounting 274 Hyperinflationary economies 275 The restatement of financial statements 275 Disclosures required by IAS29 277 Part 3 CONSOLIDATEDFINANCIAL STATEMENTS 18 Groups of companies (1) 283 Requirement to prepare consolidated financial statements 284 Group statement of financial position at date of acquisition 285 Group statement of financial position in subsequent years 289 Partly-owned subsidiaries 292 Preference shares 295 Elimination of intra-group balances 297 Unrealised profits 298 Reporting period and accounting policies 299 19 Groups of companies (2) 309 Group statement of comprehensive income 310 Subsidiary acquired part way through an accounting period 316 20 Associates and joint ventures 324 Significant influence 325 The equity method 326 Application of the equity method 326 IAS28 disclosure requirements 332 Joint ventures 333 Accounting for an interest in a jointly controlled entity 334 IAS31disclosure requirements 338 21 Related parties and changes in foreign exchange rates 344 Related parties 345 Definition of related party and related party transaction 345 Disclosures required by IAS24 346 Foreign exchange accounting 348 Reporting foreign currency transactions 349 Translation to a presentation currency 350 Part 4 ANALYSIS OF FINANCIAL STATEMENTS 22 Ratio analysis 357 Accounting ratios 358 Profitability ratios 359 Liquidity ratios 363 Efficiency ratios 365 Investment ratios 367 Limitations of ratio analysis 375 Multivariate ratio analysis 376 23 Earnings per share 384 Significance of EPS 384 Calculation of basic EPS 385 Shares issued during the period 387 Bonus issues 389 Rights issues 390 Calculation of diluted EPS 393 Presentation and disclosure requirements 395 24 Segmental analysis 400 IFRS8 Operating Segments 401 Reportable segments 401 Disclosures required by IFRS8 403 IAS14 Segment Reporting 407 Primary and secondary segment reporting formats 408 Reportable segments 408 Disclosures for the primary format 409 Disclosures for the secondary format 410 Other disclosures 412 Part 5 ANSWERS Answersto exercises 419 Index 481
- ISBN: 978-0-273-73011-8
- Editorial: Pearson/Prentice Hall
- Encuadernacion: Rústica
- Páginas: 496
- Fecha Publicación: 23/07/2009
- Nº Volúmenes: 1
- Idioma: Inglés