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· 분류 : 외국도서 > 경제경영 > 재무/회계 > 일반
· ISBN : 9781394333943
· 쪽수 : 640쪽
· 출판일 : 2025-11-24
목차
Preface x
About the Authors xiii
How to use this text xv
Chapter 1 Introduction to accounting and business decision making 1
Chapter preview 2
1.1 The accounting process 2
1.2 Accounting information and its role in decision making 3
1.3 Financial accounting and management accounting 5
1.4 Role of accounting information in business planning 7
Benefits of a business plan 8
Operation of the business 8
Evaluation of the business plan 8
1.5 Globalisation of accounting 8
1.6 Accounting information systems 9
1.7 Digital disruption and the impact on accounting 9
1.8 Careers in accounting 10
New opportunities 10
Summary of learning objectives 13
Key terms 14
Apply your knowledge 15
Comprehension questions 15
Problems 15
Decision-making activities 16
References 16
Acknowledgements 17
Appendix 1A: Excel primer 18
Chapter 2 Sustainability and reporting 39
Chapter preview 40
2.1 Sources of company regulation 40
Australian Securities and Investments Commission (ASIC) 40
Australian Securities Exchange (ASX) 41
Australian Competition and Consumer Commission (ACCC) 41
Reserve Bank of Australia (RBA) 41
Australian Prudential Regulation Authority (apra) 41
Australian Taxation Office (ATO) 42
Other government agencies 42
2.2 Australian and international accounting standards 42
Financial Reporting Council (FRC) 43
Development of accounting standards 43
Regulation in New Zealand 43
Role of professional associations 44
2.3 Business sustainability 45
Theories of business sustainability 47
2.4 Sustainability reporting and disclosure 48
2.5 Role of the Conceptual Framework 49
Objective of financial reporting 49
Qualitative characteristics of useful financial information 50
Cost constraint on useful financial reporting 51
Definition and recognition of the elements of financial statements 51
2.6 Corporate governance 52
What is corporate governance? 53
2.7 Corporate governance principles, guidelines and practices 54
2.8 Ethics in business 55
Ethics and regulation 55
Professional codes of ethics 56
Ethical decision-making methods 56
2.9 Limitations of accounting information 57
Information not reported in financial reports 58
Potential costs of providing accounting information 58
Summary of learning objectives 60
Key terms 61
Apply your knowledge 62
Self-evaluation activities 63
Comprehension questions 65
Exercises 67
Problems 69
Decision-making activities 70
References 71
Acknowledgements 71
Chapter 3 Business structures 73
Chapter preview 74
3.1 Forms of business entities 74
3.2 Definition and features of a sole trader 74
3.3 Advantages and disadvantages of a sole trader 75
Advantages 75
Disadvantages 75
3.4 Definition and features of a partnership 76
The partnership agreement 77
3.5 Advantages and disadvantages of a partnership 77
Advantages 77
Disadvantages 77
3.6 Definition and features of a company 78
Forming a company 78
3.7 Types of companies 79
Proprietary companies 79
Public companies 80
3.8 Advantages and disadvantages of a company 81
Advantages 81
Disadvantages 82
3.9 Definition and features of a trust 82
3.10 Advantages and disadvantages of a trust 82
3.11 Comparison of business reports 83
Sole trader reports 83
Partnership reports 84
Company reports ? private company 85
Company reports ? public company 86
Summary of learning objectives 90
Key terms 91
Apply your knowledge 92
Self-evaluation activities 93
Comprehension questions 95
Exercises 95
Problems 98
Decision-making activities 100
References 101
Acknowledgements 101
Chapter 4 Business transactions 103
Chapter preview 104
4.1 Recognising business transactions 104
Examples of business transactions 104
4.2 Business and personal transactions and business events 105
4.3 The accounting equation 105
The concept of duality 105
4.4 Analysis of business transactions 106
4.5 The accounting worksheet 107
4.6 Capturing accounting information: journals and ledger accounts 111
The journal 111
The ledger 111
Chart of accounts 111
4.7 Rules of debit and credit 112
4.8 The trial balance 114
4.9 Accounting errors 115
Single-entry error 115
Transposition error 115
Incorrect entry 115
Using the accounting equation to solve for missing figures 115
Summary of learning objectives 118
Key terms 119
Apply your knowledge 119
Self-evaluation activities 120
Comprehension questions 125
Exercises 125
Problems 127
Decision-making activities 131
Reference 132
Acknowledgements 132
Chapter 5 Statement of financial position 133
Chapter preview 134
5.1 Financial reporting obligations 134
Rules for the preparation of financial statements 134
General purpose and special purpose financial statements 135
5.2 Nature and purpose of the statement of financial position 136
5.3 Accounting policy choices, estimates and judgements 139
5.4 The definition of assets 140
Asset definition 140
5.5 The definition of liabilities 141
Liability definition 141
5.6 The definition and nature of equity 143
5.7 Assets, liabilities and equity 143
5.8 Format of the statement of financial position 144
5.9 Presentation and disclosure of elements in the statement of financial position 147
Current and non-current assets and liabilities 147
Presentation and disclosure of assets, liabilities and equity 148
5.10 Measurement of various assets and liabilities 157
Measurement principles 157
Measuring receivables 158
Measuring inventory 159
Measuring non-current assets 161
5.11 Potential limitations of the statement of financial position 164
Summary of learning objectives 167
Key terms 169
Apply your knowledge 171
Self-evaluation activities 171
Comprehension questions 174
Exercises 175
Problems 179
Decision-making activities 182
References 184
Acknowledgements 184
Chapter 6 Statement of profit or loss and statement of changes in equity 185
Chapter preview 186
6.1 Purpose and importance of measuring financial performance 186
6.2 Accounting concepts for financial reporting 188
The reporting period 188
Accrual accounting versus cash accounting 188
Depreciation 191
6.3 Effects of accounting policy choices, estimates and judgements on financial statements 191
Quality of earnings 193
6.4 Measuring financial performance 194
6.5 Income 195
Income definition 195
Income classification 195
6.6 Expenses 195
Expense definition 195
Expense classification 196
6.7 Applying recognition criteria to income and expenses 197
Income (revenue) recognition 198
Expense recognition 199
6.8 Presenting the statement of profit or loss 201
Prescribed format for general purpose financial statements 201
Material income and expenses 202
Format for entities not required to comply with accounting standards 204
6.9 Financial performance measures 205
Gross profit 205
Profit pre- and post-tax 206
Profit pre- and post-interest 206
Profit pre- and post-depreciation and amortisation 207
Profit pre- and post-material items 207
Profit from continuing and discontinued operations 207
Management-defined performance measures 207
6.10 The statement of comprehensive income 208
The statement of changes in equity 209
6.11 The link between the financial statements 210
Summary of learning objectives 214
Key terms 215
Apply your knowledge 217
Self-evaluation activities 217
Comprehension questions 219
Exercises 220
Problems 224
Decision-making activities 228
References 230
Acknowledgements 231
Chapter 7 Statement of cash flows 233
Chapter preview 234
7.1 The purpose and usefulness of a statement of cash flows 234
Difference between cash and accrual accounting 235
Relationship of the statement of cash flows to other financial statements 237
7.2 Format of the statement of cash flows 245
Operating activities 246
Investing activities 247
Financing activities 248
Reconciliation of cash from operating activities with operating profit 248
Presentation of the statement of cash flows 249
7.3 Preparing the statement of cash flows 250
7.4 Analysing the statement of cash flows 258
Trend and ratio analysis 260
Complexity of transactions 263
Summary of learning objectives 265
Key terms 265
Apply your knowledge 266
Self-evaluation activities 267
Comprehension questions 271
Exercises 272
Problems 276
Decision-making activities 280
References 281
Acknowledgements 282
Chapter 8 Analysis and interpretation of financial statements 283
Chapter preview 284
8.1 Users and decision making 284
8.2 Nature and purpose of financial analysis 285
8.3 Analytical methods 286
Horizontal analysis 286
Trend analysis 289
Vertical analysis 290
Ratio analysis 292
Benchmarks 293
8.4 Profitability analysis 294
Return on equity 294
Return on assets 295
Profit margin ratios 295
Analysis of profitability: JB Hi-Fi Ltd 296
8.5 Asset efficiency analysis 298
Asset turnover ratio 298
Days inventory and days debtors ratios 298
Analysis of asset efficiency: JB Hi-Fi Ltd 299
8.6 Liquidity analysis 301
Current ratio and quick ratio 301
Cash flow ratio 301
Analysis of liquidity: JB Hi-Fi Ltd 302
8.7 Capital structure analysis 302
Capital structure ratios 303
Interest servicing ratios 304
Debt coverage ratio 304
Analysis of capital structure: JB Hi-Fi Ltd 304
8.8 Market performance analysis 306
Net tangible assets per share 306
Earnings, cash flow and dividend per share 306
Price earnings ratio 307
Analysis of market performance: JB Hi-Fi Ltd 307
8.9 Ratio interrelationships 308
8.10 Limitations of ratio analysis 309
Summary of learning objectives 313
Summary of ratios 314
Key terms 316
Apply your knowledge 317
Self-evaluation activities 318
Comprehension questions 324
Exercises 324
Problems 331
Decision-making activities 336
References 339
Acknowledgements 339
Chapter 9 Budgeting 341
Chapter preview 342
9.1 Strategic planning and budgeting 342
9.2 Budgets 343
The budgeting process 343
9.3 Types of budgets 344
9.4 Master budget 345
Preparation of an operating budget for a service entity 346
Preparation of an operating budget for a manufacturing entity 349
9.5 The cash budget 352
9.6 Budgets: planning and control 354
Improving cash flow 355
Budgeting and planning in times of upheaval 356
9.7 Behavioural aspects of budgeting 357
Styles of budgeting 357
Effect of budget targets on behaviour 357
Summary of learning objectives 360
Key terms 360
Apply your knowledge 361
Self-evaluation activities 361
Comprehension questions 362
Exercises 363
Problems 368
Decision-making activities 374
Reference 377
Acknowledgements 377
Chapter 10 Cost?volume?profit analysis 379
Chapter preview 380
10.1 Cost behaviour 380
Fixed, variable and mixed costs 380
10.2 Break-even analysis 382
Break-even analysis for a single product or service 383
Break-even analysis for multiple products 386
10.3 Contribution margin ratio 388
10.4 CVP assumptions 389
10.5 Using break-even data 389
10.6 Operating leverage 390
10.7 Contribution margin per limiting factor 391
10.8 Relevant information for decision making 392
10.9 Outsourcing decisions 393
10.10 Special order decisions 396
Summary of learning objectives 401
Key terms 402
Apply your knowledge 402
Self-evaluation activities 403
Comprehension questions 404
Exercises 405
Problems 411
Decision-making activities 417
References 418
Acknowledgements 419
Chapter 11 Costing and pricing in an entity 421
Chapter preview 422
11.1 Use of cost information 422
11.2 Direct and indirect costs 423
11.3 Cost allocation 425
Cost drivers 425
11.4 Allocation process 427
Determination of full cost 428
11.5 Inventoriable product cost 434
11.6 Pricing of products and services 439
Summary of learning objectives 443
Key terms 443
Apply your knowledge 444
Self-evaluation activities 445
Comprehension questions 446
Exercises 446
Problems 450
Decision-making activities 454
Reference 456
Acknowledgements 456
Chapter 12 Capital investment 457
Chapter preview 458
12.1 The nature and scope of investment decisions 458
The process of decision making 459
12.2 Accounting rate of return 461
Decision rule for ARR 462
Advantages and disadvantages of ARR 462
12.3 Payback period 462
Decision rule for payback period 463
Advantages and disadvantages of PP 463
12.4 Net present value 464
Time value of money 464
Decision rule for NPV 465
Discount tables 465
Determining the discount rate 465
Advantages and disadvantages of the NPV method 466
12.5 Practical issues in making decisions 467
Sustainability and ESG reporting 468
Ethical investing 468
Collecting data 468
Taxation effects 469
Finance 469
Human resources 469
Goodwill and future opportunities 469
Conclusion ? Coconut Plantations’ potential coconut oil manufacturers’ investment decisions 470
Summary of learning objectives 473
Key terms 473
Apply your knowledge 474
Self-evaluation activities 475
Comprehension questions 475
Exercises 476
Problems 477
Decision-making activities 479
References 480
Acknowledgements 480
Appendix 12A 481
Appendix 12B 481
Chapter 13 Financing the business 483
Chapter preview 484
13.1 Managing net working capital 484
Deciding the appropriate level of net working capital 484
13.2 Managing cash 486
The need to have sufficient cash 486
The timing of cash flows 486
The cost of cash 487
The cost of not having enough cash 487
13.3 Managing accounts receivable 488
Benefits and costs of granting credit 488
Determinants of the level of accounts receivable 488
13.4 Managing inventories 490
Types of inventories 491
Benefits and costs of holding inventories 491
Inventory management techniques 492
13.5 Sources of short-term finance 493
Accrued wages and taxes 493
Trade credit 493
Bank overdrafts 494
Commercial bills and promissory notes 494
Factoring or debtor/invoice/trade finance 495
Inventory loans or floor-plan finance 495
13.6 Sources of long-term debt finance 496
Intermediated finance 496
Debt finance from the Australian market 498
13.7 Equity finance 498
Ordinary shares 499
Preference shares 499
Rights and options 500
13.8 Hybrid finance 500
Convertible notes 500
Convertible preference shares 501
13.9 International sources of funding 501
13.10 New funding opportunities for business 501
Green finance 502
Venture capital 502
Angel investors 502
Crowdfunding 502
Security token offerings (STOs) 502
Microcredit (microloans) 502
Summary of learning objectives 505
Key terms 506
Apply your knowledge 507
Self-evaluation activities 508
Comprehension questions 509
Exercises 509
Problems 510
Decision-making activities 512
References 513
Acknowledgements 513
Chapter 14 Performance measurement 515
Chapter preview 516
14.1 Organisational performance measurement 516
Balanced scorecard 517
14.2 Divisional performance measurement 519
Divisional performance evaluation 521
Pricing guide 522
Evaluation of investment level 523
14.3 Investment centre performance evaluation 524
Residual income 526
Economic value added 527
ROI, RI and EVA compared 528
The investment base 529
14.4 Environmental and social performance 530
Eco-efficiency 531
14.5 Individual performance measurement 531
14.6 Non-financial performance evaluation 533
14.7 Data visualisation 535
Summary of learning objectives 539
Key terms 539
Apply your knowledge 540
Self-evaluation activities 541
Comprehension questions 543
Exercises 544
Problems 546
Decision-making activities 550
References 552
Acknowledgements 552
Appendix I 553
Appendix II 573
Index 609
