Cover -- Financial Accounting -- Brief contents -- Contents -- Guided tour of the book -- Guided tour of the Companion Website -- Preface -- How to use this book -- Acknowledgements -- 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 -- But . . . is it material? -- Weighing up the costs and benefits -- Accounting as an information system -- Management accounting and financial accounting -- Scope of this book -- Has accounting become too interesting? -- The changing face of accounting -- What kinds of business ownership exist? -- How are businesses organised? -- What is the financial objective of a business? -- Balancing risk and return -- Not-for-profit organisations -- Summary -- Key terms -- Reference -- Further reading -- Review questions -- Measuring and reporting financial position -- Introduction -- Learning outcomes -- Making financial decisions -- 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 -- Summary -- Key terms -- Further reading -- Review questions -- Exercises -- Measuring and reporting financial performance -- Introduction -- Learning outcomes -- What does it mean? -- The income statement -- Different roles -- Income statement layout -- Further issues -- Recognising revenue -- Recognising expenses -- Depreciation -- Costing inventories -- Trade receivables problems -- Uses and usefulness of the income statement -- Summary -- Key terms -- Further reading -- Review questions.

Exercises -- Accounting for limited companies (1) -- Introduction -- Learning outcomes -- Why limited companies? -- The main features of limited companies -- Legal safeguards -- Public and private companies -- Taxation -- Transferring share ownership: the role of the Stock Exchange -- Managing a company -- Financing limited companies -- Share capital -- Reserves -- Bonus shares -- Share capital jargon -- Raising share capital -- Borrowings -- Withdrawing equity -- The main financial statements -- Dividends -- Summary -- Key terms -- Further reading -- Review questions -- Exercises -- Accounting for limited companies (2) -- Introduction -- Learning outcomes -- The directors' duty to account -- The need for accounting rules -- Sources of accounting rules -- Presenting the financial statements -- Selected financial reporting standards -- The framework of principles -- Problems with standards -- Accounting rules or accounting choice? -- The auditors' role -- Directors' report -- Summary financial statements -- Creative accounting -- Summary -- Key terms -- Further reading -- Review questions -- Exercises -- Measuring and reporting cash flows -- Introduction -- Learning outcomes -- The statement of cash flows -- Why is cash so important? -- The main features of the statement of cash flows -- A definition of cash and cash equivalents -- The relationship between the main financial statements -- The form of the statement of cash flows -- Preparing the statement of cash flows -- What does the statement of cash flows tell us? -- Problems with IAS 7 -- Summary -- Key terms -- Reference -- Further reading -- Review questions -- Exercises -- Analysing and interpreting financial statements (1) -- Introduction -- Learning outcomes -- Financial ratios -- Financial ratio classifications -- The need for comparison -- Calculating the ratios -- Profitability.

Efficiency -- Relationship between profitability and efficiency -- Liquidity -- Operating cash cycle -- Financial gearing -- Summary -- Key terms -- Further reading -- Review questions -- Exercises -- Analysing and interpreting financial statements (2) -- Introduction -- Learning outcomes -- Investment ratios -- Financial ratios and the problem of overtrading -- Trend analysis -- Common-sized financial statements -- Using ratios to predict financial failure -- Limitations of ratio analysis -- Summary -- Key terms -- References -- Further reading -- Review questions -- Exercises -- Reporting the financial results of groups of companies -- Introduction -- Learning outcomes -- What is a group of companies? -- Why do groups exist? -- Types of group relationship -- Preparation of a group statement of financial position -- Goodwill arising on consolidation and asset carrying amounts -- Inter-company assets and claims -- Preparation of a group income statement -- The statement of comprehensive income -- Inter-company trading -- Group statement of cash flows -- Accounting for less than a controlling interest - associate companies -- The argument against consolidation -- Summary -- Key terms -- Further reading -- Review questions -- Exercises -- Increasing the scope of financial reporting -- Introduction -- Learning outcomes -- The development of financial reporting -- From stewardship to decision making -- Segmental financial reports -- Business review -- Interim financial statements -- The value added statement -- Inflation accounting and reporting -- Summary -- Key terms -- References -- Further reading -- Review questions -- Exercises -- 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 -- Assessing board performance -- Remunerating directors -- Setting performance targets -- Total shareholder return -- Economic value added (EVA�) -- Earnings per share -- Directors' share options -- Deciding on a target measure -- The rise of shareholder activism -- Summary -- Key terms -- References -- Further reading -- 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 review questions -- Appendix E Solutions to selected exercises -- Index.

A comprehensive and accessible introduction to the subject, Financial Accounting for Decision Makers focuses on the ways in which financial statements and information can be used to improve the quality of decision making.  By introducing topics gradually and explaining technical terminology in a clear, friendly style, the authors cater both for accounting students, and for those studying entry-level accounting within another field. A practical emphasis throughout the book ensures that the material is always relevant and suitable to the decision makers of the future.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2019. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.