For Financial Accounting modules on undergraduate and MBA courses. Understand financial accounting principles and techniques, and develop skills to make informed business decisions An accessible introduction to the subject from two highly regarded accounting authors, Financial Accounting for Decision Makers, 10th edition by Peter Atrill & Eddie McLaney focuses on the ways in which financial statements and information can be used to improve the quality of decision making. Updated with examples that show the pressure facing industries as a result of the * pandemic, the book regularly illustrates the outworking of financial accounting in real business issues. It maintains a clear, friendly style throughout, and is essential reading whether you are on an accounting degree or studying financial accounting modules within other disciplines. ‘My many students and I have used this book for years now and would highly recommend it to anyone looking for a very accessible introduction to financial reporting.’ Dr Andrew McFaull, Deputy Programme Director of BSc Accounting and Finance, King's College London Instructors, personalize learning with MyLab Accounting By combining trusted author content with digital tools and a flexible platform, MyLab personalises the learning experience and improves results for each student. MyLab Accounting for this edition includes over 1200 questions that can be assigned to students. If you would like to purchase both the physical text and MyLab Accounting search for: 9781292409153 Financial Accounting for Decision Makers 10th edition with MyLab Accounting Package consists of: 9781292409184 Financial Accounting for Decision Makers 10th edition 9781292409122 Financial Accounting for Decision Makers 10th edition MyLab Accounting 9781292409139 Financial Accounting for Decision Makers 10th edition Pearson eText ‘When used in conjunction with the MyLab Accounting package this is an excellent resource to build a non-technical understanding of financial accounting.’ Graham McDonald CA CFA, Senior Lecturer, University of Roehampton ‘An introductory financial accounting textbook in which theory is simplified and enhanced by real-world views and examples illustrating many applications in prominent businesses facing contemporary challenges, including the * pandemic.’ Dr Paola M. Madini, Lecturer in Accounting, University of Kent ‘My many students and I have used this book for years now and would highly recommend it to anyone looking for a very accessible introduction to financial reporting.’ Dr Andrew McFaull, Deputy Programme Director of BSc Accounting and Finance, King's College London
Author(s): Peter Atrill, Eddie McLaney
Edition: 10
Publisher: Pearson
Year: 2022
Language: English
Pages: 631
City: Harlow
Front Cover
Half Title
Title Page
Copyright Page
Brief Contents
Contents
Preface
How to use this book
1 Introduction to accounting
Introduction
Learning outcomes
What is accounting?
Who are the users of accounting information?
The conflicting interests of users
How useful is accounting information?
Providing a service
Weighing up the costs and benefits
Accounting as an information system
Management accounting and financial accounting
Scope of this book
The changing face of accounting
Accounting for business
What is the purpose of a business?
What kinds of business ownership exist?
How are businesses organised?
The quest for wealth creation
Meeting the needs of other stakeholders
Balancing risk and return
Accounting for ethics
Not-for-profit organisations
Summary
Key terms
References
Further reading
Critical review questions
2 Measuring and reporting financial position
Introduction
Learning outcomes
The major financial statements - an overview
The statement of financial position
The effect of trading transactions
Classifying assets
Classifying claims
Statement layouts
Capturing a moment in time
The role of accounting conventions
Money measurement
Valuing assets
Meeting user needs
Self-assessment question
Summary
Key terms
Reference
Further reading
Critical review questions
Exercises
3 Measuring and reporting financial performance
Introduction
Learning outcomes
The income statement
Different roles
Income statement layout
Further issues
Recognising revenue
Recognising expenses
Profit, cash and accruals accounting
Depreciation
Costing inventories
Trade receivables problems
Uses and usefulness of the income statement
Self-assessment question
Summary
Key terms
Further reading
Critical review questions
Exercises
4 Accounting for limited companies (1)
Introduction
Learning outcomes
The main features of limited companies
Legal safeguards
Public and private companies
Taxation
The role of the Stock Exchange
Capital market efficiency
Managing a company
Financing limited companies
Share capital
Reserves
Bonus shares
Share capital jargon
Borrowings
Raising share capital
Withdrawing equity
The main financial statements
Dividends
Self-assessment question
Summary
Key terms
References
Further reading
Critical review questions
Exercises
5 Accounting for limited companies (2)
Introduction
Learning outcomes
The directors' duty to account
The need for accounting rules
Sources of accounting rules
Problems with standards
Accounting rules or accounting choice?
The need for a conceptual framework
The IASB framework
The auditors' role
The framework of annual financial reports
Presenting the financial statements
Management commentary
Directors' report
Strategic report
Accounting standards and accounting policies
Creative accounting
Self-assessment question
Summary
Key terms
References
Further reading
Critical review questions
Exercises
6 Measuring and reporting cash flows
Introduction
Learning outcomes
Why is cash so important?
The statement of cash flows and its relation to the other financial statements
The relationship between the financial statements
The main features of the statement of cash flows
A definition of cash and cash equivalents
The layout of the statement of cash flows
The normal direction of cash flows
Preparing the statement of cash flows
Reconciliation of liabilities from financing activities
What does the statement of cash flows tell us?
Problems with IAS 7
Self-assessment question
Summary
Key terms
Reference
Further reading
Critical review questions
Exercises
7 Recognising and reporting assets and liabilities
Introduction
Learning outcomes
Provisions, contingent liabilities and contingent assets
Provisions
Contingent liabilities
Contingent assets
Internally generated intangible assets
Leases
Borrowing costs
Self-assessment question
Summary
Key terms
Further reading
Critical review questions
Exercises
Appendix: Time value of money
8 Analysing and interpreting financial statements (1)
Introduction
Learning outcomes
Financial ratios
Financial ratio classifications
The need for comparison
Calculating the ratios
A brief overview
Profitability
Efficiency
Relationship between profitability and efficiency
Liquidity
Operating cash cycle
Financial gearing
Self-assessment question
Summary
Key terms
Further reading
Critical review questions
Exercises
9 Analysing and interpreting financial statements (2)
Introduction
Learning outcomes
Investment ratios
Financial ratios and the problem of overtrading
Key performance indicators
Common-size financial statements
Trend analysis
Using ratios to predict financial failure
Limitations of ratio analysis
Self-assessment question
Summary
Key terms
References
Further reading
Critical review questions
Exercises
10 Reporting the financial results of groups of companies
Introduction
Learning outcomes
What is a group of companies?
How do groups arise?
Types of group relationship
Preparing a consolidated statement of financial position
Inter-company assets and claims
Goodwill arising on consolidation and asset carrying amounts
Preparing a consolidated income statement
Inter-company trading
The statement of comprehensive income
Consolidated statement of cash flows
Accounting for less than a controlling interest - associate companies
The argument against consolidation
Self-assessment question
Summary
Key terms
Further reading
Critical review questions
Exercises
11 Increasing the scope of financial reporting
Introduction
Learning outcomes
The development of financial reporting
From stewardship to decision making
Segmental financial reports
Summary financial statements
Interim financial statements
The value added statement
Accounting for inflation
Self-assessment question
Summary
Key terms
References
Further reading
Critical review questions
Exercises
12 Governing a company
Introduction
Learning outcomes
Corporate governance
The board of directors
The UK Corporate Governance Code
Tasks of the board
Chairing the board
The role of non-executive directors
The audit process
Remunerating directors
Performance measures
Assessing board performance
The rise of shareholder activism
Self-assessment question
Summary
Key terms
References
Further reading
Critical review questions
Exercises
Appendix A Recording financial transactions
Introduction
Learning outcomes
The basics of double-entry bookkeeping
Recording trading transactions
Balancing accounts and the trial balance
Preparing the financial statements (final accounts)
The ledger and its division
Summary
Key terms
Further reading
Exercises
Appendix B Glossary of key terms
Appendix C Solutions to self-assessment questions
Appendix D Solutions to critical review questions
Appendix E Solutions to selected exercises
Index
Credits
Back Cover
