A focused, user-friendly introduction to international financial reporting International Financial Reporting, 8th edition by Melville employs a practical, applied approach in exploring and explaining the key financial standards. With more than 140 countries in the world now using international financial reporting standards (IFRS® Standards), knowledge of the standards issued by the International Accounting Standards Board (IASB®) is vital to your success in financial accounting. Offering a thorough introduction to international financial reporting, this new edition brings the book completely up-to-date with international standards issued as of 1 January 2022. The title is suitable for second-year undergraduates studying for a degree in accounting and finance and those preparing for examinations for the professional accounting bodies. It explains each standard as clearly and concisely as possible and provides plenty of worked examples and solutions. End-of-chapter exercises feature questions from past exam papers of key professional accountancy bodies to test your grasp of the topics introduced in that chapter. 'Melville's textbook is accessible, comprehensive, reliable, and a pleasure to read.' Dr. Neil Dunne, Trinity College Dublin 'A practical book which takes a very technical subject and breaks it down into concise sections which are easy to follow.' Emma James, Swansea University Pearson, the world's learning company.
Author(s): Alan Melville
Edition: 8
Publisher: Pearson
Year: 2023
Language: English
Pages: 529
City: Harlow
Front Cover
Half Title
Title Page
Copyright Page
Contents
Preface
Acknowledgements
List of international standards
Part 1 Introduction to Financial Reporting
Chapter 1 The regulatory framework
The need for regulation
Sources of regulation
Generally accepted accounting practice
The International Accounting Standards Board
The IASB standard-setting process
The purpose of accounting standards
Worldwide use of international standards
First-time adoption of international standards
The International Sustainability Standards Board
Chapter 2 The IASB conceptual framework
Purpose and status of the IASB Conceptual Framework
Objective of general purpose financial reporting
Qualitative characteristics of financial information
Financial statements and the reporting entity
Elements of financial statements
Recognition of the elements of financial statements
Measurement of the elements of financial statements
Presentation and disclosure
Concepts of capital and capital maintenance
Discounting and present value
Chapter 3 Presentation of financial statements
Purpose of financial statements
Components of financial statements
General features
Structure and content of financial statements
The statement of financial position
The statement of comprehensive income
The statement of changes in equity
The notes to the financial statements
Interim financial reporting
Management commentary
Making materiality judgements
Exposure Draft ED/2019/7
Chapter 4 Accounting policies, estimates and errors
Accounting policies
Accounting estimates
Prior period errors
Part 2 Financial Reporting in Practice
5 Property, plant and equipment
Definition of property, plant and equipment
Recognition of property, plant and equipment
Initial measurement of property, plant and equipment
Subsequent measurement of property, plant and equipment
Depreciation
Disclosure requirements
Borrowing costs
Government grants
Investment property
IFRS13 Fair Value Measurement
Chapter 6 Intangible assets
Definition of an intangible asset
Initial recognition and measurement of intangible assets
Subsequent measurement of intangible assets
Amortisation of intangible assets
Derecognition
Disclosure requirements
Goodwill
IFRS3 Business Combinations
Chapter 7 Impairment of assets
Indications of impairment
Recoverable amount
Recognition and measurement of an impairment loss
Cash-generating units
Reversal of impairment losses
Disclosure requirements
Chapter 8 Non-current assets held for sale and discontinued operations
Classification of non-current assets as held for sale
Measurement of non-current assets held for sale
Presentation of non-current assets held for sale
Discontinued operations
Chapter 9 Leases
Definition of a lease
Lease accounting by lessees
Lease accounting by lessors
Sale and leaseback transactions
Chapter 10 Inventories
Inventories
Cost of inventories
Cost formulas
Net realisable value
Disclosures relating to inventories
Chapter 11 Financial instruments
Definitions
Classification of financial instruments
Recognition and measurement
Initial measurement of financial assets and liabilities
Subsequent measurement of financial assets
The effective interest method
Subsequent measurement of financial liabilities
Disclosure requirements
Chapter 12 Provisions and events after the reporting period
Recognition of a provision
Measurement of a provision
Application of the recognition and measurement rules
Contingent liabilities and contingent assets
Disclosure requirements
Events after the reporting period
Chapter 13 Revenue from contracts with customers
Purpose and scope of IFRS15
The five-step model
Identifying the contract
Identifying performance obligations
Determining the transaction price
Allocating the transaction price
Satisfaction of performance obligations
Contract costs
Presentation and disclosure
Guidance to the application of IFRS15
Chapter 14 Employee benefits
Short-term employee benefits
Post-employment benefits
Accounting for defined contribution plans
Accounting for defined benefit plans
Other long-term employee benefits
Termination benefits
Share-based payments
Chapter 15 Taxation in financial statements
Current tax
Deferred tax
The tax base concept
IAS12 requirements with regard to deferred tax
Disclosure requirements
Chapter 16 Statement of cash flows
Cash and cash equivalents
Classification of cash flows by activity
Interest, dividends and taxes
Reporting cash flows from operating activities
Disclosures
Exposure Draft ED/2019/7
Chapter 17 Financial reporting in hyperinflationary economies
Historical cost accounting and its weaknesses
Strengths of historical cost accounting
Alternatives to historical cost accounting
Hyperinflationary economies
The restatement of financial statements
Disclosures required by IAS29
Part 3 Consolidated Financial Statements
Chapter 18 Groups of companies (1)
Requirement to prepare consolidated financial statements
Group statement of financial position at date of acquisition
Group statement of financial position in subsequent years
Partly-owned subsidiaries
Preference shares
Elimination of intra-group balances
Unrealised profits
Reporting period and accounting policies
Disclosure requirements
Chapter 19 Groups of companies (2)
Group statement of comprehensive income
Group statement of changes in equity
Subsidiary acquired part way through an accounting period
Chapter 20 Associates and joint arrangements
Associates and significant influence
The equity method
Application of the equity method
Joint arrangements
Disclosure requirements
Chapter 21 Related parties and changes in foreign exchange rates
Related parties
Definition of related party and related party transaction
Disclosures required by IAS24
Foreign exchange accounting
Reporting foreign currency transactions
Translation to a presentation currency
Part 4 Analysis of Financial Statements
Chapter 22 Ratio analysis
Accounting ratios
Profitability ratios
Liquidity ratios
Efficiency ratios
Investment ratios
Limitations of ratio analysis
Multivariate ratio analysis
Chapter 23 Earnings per share
Significance of EPS
Calculation of basic EPS
Shares issued during the accounting period
Bonus issues
Rights issues
Calculation of diluted EPS
Presentation and disclosure requirements
Chapter 24 Segmental analysis
Operating segments
Reportable segments
Disclosures required by IFRS8
Part 5 Small and Medium-sized Entities
Chapter 25 The IFRS for SMEs Standard
Small and medium-sized entities
Concepts and pervasive principles
Financial statement presentation
Statement of financial position
Statement of comprehensive income and income statement
Statement of changes in equity and Statement of income and retained earnings
Statement of cash flows
Notes to the financial statements
Consolidated and separate financial statements
Accounting policies, estimates and errors
Financial instruments
Inventories
Investments in associates and joint ventures
Investment property
Property, plant and equipment
Intangible assets other than goodwill
Business combinations and goodwill
Leases
Provisions and contingencies
Liabilities and equity
Revenue
Government grants
Borrowing costs
Share-based payment
Impairment of assets
Employee benefits
Income tax
Foreign currency translation and Hyperinflation
Events after the end of the reporting period
Related party disclosures
Specialised activities
Transition to the IFRS for SMEs Standard
Part 6 Answers
Answers to exercises
Index
Back Cover
