Financial Accounting, Global Edition, 11th edition

For introductory courses in Financial Accounting.

A User-Focused Approach and Solid Foundation in the Construction and Analysis of Financial Statements for Use in Future Courses and Careers

Financial Accounting: International Financial Reporting Standards (IFRS) continues to give readers a solid foundation in the fundamentals of accounting and the basics of financial statements under IFRS, and then builds upon that foundation to offer more advanced and challenging concepts and problems. This approach helps students to better understand the meaning and relevance of financial information and develop the skills needed to analyze financial information in both their courses and careers.

Written in a manner suitable for accounting and non-accounting majors, the Eleventh Edition, Global Edition, is the ideal text for a first course in financial accounting with a focus on IFRS. With its long-standing reputation in the marketplace for being easy to read and understand, this text drives home fundamental concepts in a reader-friendly way without adding unnecessary complexity. While maintaining the hallmark features of accuracy, readability, and ease of understanding, this Global Edition includes updated explanations, coverage, new real-world examples, and most importantly, updates to the Conceptual Framework.

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MyLab is an online homework, tutorial, and assessment product designed to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

About the Book

Use Consistency, Repetition, and a High Level of Detail

• Scaffolding Approach: Chapter content and end-of-chapter material build from a basic, short exercise featuring one basic single concept, to more advanced problems featuring multiple learning objectives, encouraging practice and skill development among students.
• Emphasis on Conceptual Framework: The Conceptual Framework is the best way to understand accounting in an IFRS setting. The Eleventh Edition, Global Edition, includes updates in the Conceptual Framework and combines it with new and updated real-world applications. This approach ensures that students learn basic concepts in accounting in a way that is relevant, stimulating, and fun.
• UPDATED! Chapter opening images and illustrations across chapters.
• UPDATED! The first three chapters cover the accounting cycle and how financial statements are constructed; Chapter 1 gives an overview of the company’s financial statements and explains what each contains. Chapter 2 covers business transactions—how they impact the accounting equation and how they are journalized, posted, and summarized. Chapters 3 and 4 come with updated Chapter Spotlights, featuring the latest financial statements and accounting practices of companies.
• NEW and UPDATED! Box features reflect the latest discussions in the IFRS and harmonization contexts.
• UPDATED! Improved organization of material makes the sequence and flow of the topics easier to follow and retain.
• NEW adapted excerpts from real-world companies’ notes to the financial statements illustrate how additional information is factored into the main statements.
• UPDATED! Chapter 5 has been revised to include a new Chapter Spotlight on The LEGO Group to illustrate the use of internal controls and corporate governance; updated examples of accounting scandals and their repercussions to emphasize the significance of the need for internal controls under IFRS.
• UPDATED! Chapter 6 has a new Chapter Spotlight on Fast Retailing, illustrating a company accounting for merchandise operations across multiple brands. Updated excerpts adapted from various companies’ financial statements offer a focused look into inventory management in modern business organizations.
• UPDATED! Chapter 7 has a new Chapter Spotlight focusing on Airbus Group that illustrates how major companies with operations in multiple countries account PPE along with intangibles. Adapted excerpts are used as snapshots into the group’s classification of assets and methods of accounting.
• UPDATED! Chapter 9 comes with a new Chapter Spotlight on Jardine Matheson Holdings Ltd. to represent how companies operating in multiple sectors account for liabilities. Updated explanations of the company’s financial statements and adapted excerpts shed light on the specifics of the various categories of liabilities.
• UPDATED! Chapter 12 has a new Chapter Spotlight on Nestlé, which provides a significantly updated and comprehensive look into financial statement analysis for a company operating in multiple geographies and brands. A detailed look into the company’s financial statements covers the various aspects involved in analysis.
• NEW! Stop & Think boxes are tailored to act as important checkpoints for concepts on which later topics build.
• NEW! A Closer Look boxes provide snapshots into upcoming changes in IFRS under the topics covered in this edition.
• NEW! The “Try It i

About the Book

Use Consistency, Repetition, and a High Level of Detail

• Scaffolding Approach: Chapter content and end-of-chapter material build from a basic, short exercise featuring one basic single concept, to more advanced problems featuring multiple learning objectives, encouraging practice and skill development among students.
• UPDATED! Illustrations of electronic bank statements (Chapter 4).

Teach with Better Coverage of Accounting Concepts and Standards

• UPDATED! Accounting cycle is now covered in a more chronological sequence:
  • Chapter 1 introduces the accounting cycle with a brief financial statement overview, using the financial statements of The Walt Disney Company. This first exposure to accounting explores financial statements in depth, familiarizes students with using real business data, and points out basic relationships between the different types of statements.
  • Chapter 2 continues the discussion of the accounting cycle by explaining how to journalize, post, and summarize basic transactions, and builds in repetition to ensure that students understand the fundamentals when they prepare the trial balance.
  • Chapter 3 concludes the discussion of the accounting cycle with adjusting and closing entries, and preparation of the related trial balances to close the loop for students.
• Coverage of AICPA’s Code of Professional Conduct includes the code’s principles, explaining CPA’s responsibility to act in the public’s interest, to have integrity and objectivity, and to exercise due professional care.
• UPDATED! Up-to-the-minute coverage of the revised FASB accounting standard on revenue recognition, impacting accounting for sales returns and sales discounts, is included in Chapters 3, 5, and 11.
• UPDATED! The Days’ Sales Outstanding (DSO) ratio in Chapter 5 has been improved and made more consistent with the coverage of Days’ Inventory Outstanding (DIO) in Chapter 6 and Days’ Payable Outstanding (DPO) in Chapter 9.
• UPDATED! Coverage of inventory and cost of goods sold in Chapter 6 has been updated using Under Armour, Inc., a company highly familiar to college students, and one whose details makes the study of inventory more interesting.
• Ethics coverage is a vital part of accounting. Sound ethical judgment is important for every major financial decision—which is why this text provides consistent ethical reinforcement in every chapter.
  • Several sections of the text are dedicated to discussing potential ethical problems that can arise when dealing with the corresponding topic, and how they should be properly handled.
  • Additional End-of-Chapter questions allow for short open response questions and/or discussion. These End-of-Chapter questions connect back to AICPA’s Code of Professional Conduct and the overall topic of ethics.
• A self-contained section on straight-line amortization for bond premium or discount in Chapter 9 allows instructors to pick and choose what topics they want to cover.

Reinforce Learning by Using Exercises

• UPDATED! Short exercises, exercises, and problems are more clearly labeled by learning objectives (LO). Short exercises have been condensed and simplified in this edition to explain only one learning objective each (to better cover single concepts as illustrations or class exercises) while exercises cover two or three LOs and problems cover multiple LOs.
• A hypothetical Case Study in Chapter 4 introduces fraud concepts and how fraud can be prevented by internal control. This fictionalized case study is based on an actual company in Texas whos