Accounting

ACCOUNTING 8th edition continues the strong reputation established by this leading Australian text as the most comprehensive book for students studying introductory accounting in undergraduate or postgraduate programs. This new edition illustrates the applications of accounting and explains the role of accounting in business decision making. Accordingly, information on the accounting process and the regulatory environment has been thoroughly updated in line with recent changes to AIFRSs and the Conceptual Framework as per International Accounting Standards Board developments. The full–colour design provides students with a more reader–friendly text to enhance their understanding of concepts and make their study more enjoyable. The text builds on the thorough and reliable explanation of the accounting process through the ‘business knowledge’ chapter vignettes that apply the principles to practice. Previous editions were renowned for the number of exercises and problems, and the new edition builds on this superior teaching feature. The end–of–chapter activities are designed to encourage student confi dence through the development of skills in decision making, critical thinking, ethical thinking, analysis and communication. WILEY WISHES YOU SUCCESS IN YOUR ACCOUNTING STUDIES

Preface xiii How to use this book xvii Acknowledgements xxi Part 1 Accounting for decision making 1 1 Decision making and the role of accounting 2 2 Financial statements for decision making 28 Part 2 Accounting systems and processes 63 3 Recording transactions 64 4 Adjusting the accounts and preparing financial statements 122 5 Completing the accounting cycle — closing and reversing entries 176 6 Accounting for retailing 228 7 Accounting systems 274 8 Accounting for manufacturing 338 9 Cost accounting systems 376 Part 3 Financial planning, control and decision making 415 10 Cash management and control 416 11 Cost–volume–profit analysis for decision making 460 12 Budgeting for planning and control 492 13 Performance evaluation for managers 538 14 Differential analysis, profitability analysis and capital budgeting 580 Part 4 Equity in business 613 15 Partnerships: formation, operation and reporting 614 16 Companies: formation and operations 648 Part 5 Accounting regulation of assets and liabilities 699 17 Regulation and the Conceptual Framework 700 18 Receivables 748 19 Inventories 784 20 Non–current assets: acquisition and depreciation 828 21 Non–current assets: revaluation, disposal and other aspects 866 22 Liabilities 906 Part 6 External reporting and performance evaluation 943 23 Presentation of financial statements 944 24 Statement of cash flows 976 25 Analysis and interpretation of financial statements 1054 Appendix Time value of money 1099 Glossary 1108 Index 1120

John Hoggett , BCom (Hons), BTh, MFM (Qld), AAUQ, FCPA, has taught accounting at several different universities in Western Australia and Queensland during his 40 years as an academic. He has taught introductory accounting, corporate accounting and accounting theory to undergraduate and postgraduate students, and written books and monographs for a variety of organisations including CPA Australia and the Group of 100. He was also involved in secondary accounting education for several years with the Curriculum Council of Western Australia. Dr John Medlin , PhD (UniSA), BEc (Adelaide), MEc (UNE), CA, is a senior lecturer in the School of Commerce at the University of South Australia. John began his career with Ernst & Whinney (now Ernst & Young) in the early 1980s. After a few years practical experience, John moved to accounting education where he has lectured in both financial and management accounting, accounting theory, economics and business finance. From 1998 until 2010, John coordinated a general first–year accounting subject with an enrolment in excess of 1000 students each year, 80% of whom were non–accounting majors. Since 2010, John has coordinated a second–year financial accounting subject. He has been recognised with teaching awards from the University of South Australia. His research interest is in the area of accounting education in which he has presented conference papers and been published. Lew Edwards  is Emeritus Professor of the School of Accounting, Queensland University of Technology. Lew’s career includes over 25 years teaching financial and managerial accounting to undergraduate and postgraduate students. He was Head of School (Department) of Accountancy for 18 years. He is a both a chartered accountant and a CPA, and served for many years on education and technical standards committees (both state and national) of the professional accounting bodies. He has also served as a consultant to accounting firms, industry and government at both national and international levels. Lew is co–author (with John Hoggett) of the best selling Australian accounting texts Financial Accounting in Australia and Accounting in Australia. He has also published (as author and co–author) a wide range of manual and computerised accounting practice sets. Matthew Tilling , BCom (Flinders), is a senior lecturer in Accounting at the University of Notre Dame, Australia. He has taught a range of accounting topics to both undergraduates and postgraduates in over a decade of university teaching, with a primary focus on issues affecting large corporations. This academic focus has been complemented with the provision of extensive consulting and training services to numerous professional and corporate entities on a wide range of current accounting problems. He has also been involved with syllabus and exam design for high school accounting in Western Australia. Matthew has published articles on accounting education and social and environmental accounting in a range of international journals. Evelyn Hogg , BCom, BAcc, CA, CA (SA), ACMA, is a senior lecturer in financial accounting and managerial accounting at the University of Notre Dame, Australia. She is a chartered accountant and a chartered management accountant. She has over 25 years of university teaching, commercial training and consulting experience in accounting and assurance services locally and overseas. She has a keen interest in the development of accounting education and training in secondary, tertiary and commercial environments.