Financial Accounting for Decision Makers 8th edn

Peter Atrill is a freelance academic and author working with leading institutions in the UK, Europe and SE Asia. He was previously Head of Accounting and law and Head of Business and Management at the Plymouth University Business School   Eddie McLaney is Visiting Fellow in Accounting and Finance at Plymouth University.

CONTENTS 

 

Preface

How to use this book

Acknowledgements

 

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

Reasons to be ethical

Not-for-profit organisations

Summary

Key terms

References

Further reading

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

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

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

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

Review questions