Company Accounting 6th edition has been thoroughly updated
to reflect the numerous and profound changes as a result of Australia
adopting the International Accounting Standards. The new edition
succinctly documents the recent changes to accounting standards,
particularly disclosures in income statements and balance sheets,
accounting for income tax and revaluation and impairment of non-current
The text is designed to provide students with a comprehensive and
practical grounding in the practice of company accounting, under
the new International Standards, whilst providing essential information
on why and how company accounting entries and disclosures are made.
NEW TO THIS EDITION
The 6th edition is substantially different from previous editions:
- There are new chapters on:
- property, plant and equipment, following AASB 116 Property,
Plant and Equipment
- intangible assets, following AASB 138 Intangible Assets
- impairment of assets, following AASB 136 Impairment
- New sections are included on the regulation of companies and
on the impact of the definitions contained in the IASB's Framework
for external and internal reporting by companies. Particular attention
has been paid to the definitions of income and revenue as contained
in the Framework and in AASB 118 Revenue.
- There are revised chapters on:
- accounting for income tax following AASB 112 Income
Taxes, using the balance sheet approach
- accounting for the acquisition of assets and entities,
following AASB 3 Business Combinations
- consolidated financial statements, following AASB 127 Consolidated
and Separate Financial Statements.
- Four chapters are devoted to external financial reporting and
have been amended to include not only the balance sheet and income
statement under AASB 101 Presentation of Financial Statements
but also the statement of changes in equity. The chapter on cash
flow statements has been amended to be consistent with the application
of AASB 107 Cash Flow Statements. Other accounting standards
considered in detail in the area of disclosure are AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors, AASB
110 Events after the Balance Sheet Date and AASB 1031 Materiality.
- The treatment of dividends declared and paid by a company has
been amended significantly to reflect the change in policy as
to when such dividends become liabilities.
- Chapters have been rearranged to provide a more logical flow
of ideas, particularly with the inclusion of new material - for
example, the chapter on liquidation is now placed at the end of
Besides the changes to content, other pedagogical changes are:
- a more accessible and student-friendly writing style
- new chapter organisation, ensuring students are not overwhelmed
by the more challenging aspects of company accounting
- structured and achievable learning objectives set out for each
- new graded end-of-chapter material enhancing the existing range
and diversity of exercises and problems, with a star rating system
to indicate the degree of difficulty
- end-of-chapter summaries and key terms, with a glossary at the
back of the book to reinforce student learning.
In writing the new edition, the authors were careful to retain
the strengths and hallmarks of this book:
- Attention to detail. Students are expected to learn key
concepts and definitions and to use the terms in the accounting
standards when considering issues and writing reports.
- Practical application of accounting standards. Students
must be able to apply accounting standards. Illustrative examples
are used to demonstrate practical application, and extensive problems
and exercises are available for student practice.
- Conceptual basis. It is not sufficient for students to
learn practical examples by rote. To be able to apply accounting
standards in unseen situations, students must understand the rationale
behind the standards. This book emphasises the conceptual rationale
behind the practice of accounting.
- Depth of analysis. Many current books and courses cover
only the very simplest of practical situations, which are not
representative of real-world practice. We have provided a variety
of practical situations in which an accounting standard may be
applied. This increases the complexity of the book, but makes
the learning appropriate for future employment. By adopting a
modular approach, particularly in the areas of external reporting
and consolidated financial statements, the book enables teachers
and students to learn progressively or selectively.