Applying International Accounting Standards helps accounting students and practitioners to understand the complexities of international accounting standards and to apply the stable platform of standards. It examines standards not related to specific industries that are therefore of wide application. The book has four sections:

• Part 1: Framework. The first chapter in this section provides an overview of the IASB as an organisation. To understand the workings of the IASB, it is useful to view its history as well as its current structures and decision-making processes. The second chapter contains an analysis of the Framework in relation to the accounting standards. A detailed knowledge of the Framework used by the IASB in its development of accounting standards enables the interrelationships between the standards themselves to be better understood.
• Part 2: Elements. The three elements of accounting are assets, liabilities and equity. This book uses primarily companies as the organisational structure under review, so equity is analysed in relation to the component parts of share capital, retained
  earnings and other reserves. For assets, the key classes analysed are: inventories; intangibles; leases; and property, plant and equipment. Provisions and contingencies constitute the liability focus, while other standards that cover both assets and liabilities (such as income tax and financial instruments) add to the coverage of the elements. Because of their effects on the recognition and measurement process, the standards on business combinations and impairment are included in this part.
• Part 3: Disclosure. An introduction to the process of selecting and changing accounting policies, as well as the concept of materiality, is provided in the first chapter of this section. The remaining two chapters provide details about what must be disclosed in the balance sheet, income statement, statement of changes in equity and the cash flow statement.
• Part 4: Economic Entities. This section focuses on organisational structures where an entity has investments in other entities. Much detail is provided on the rationale for and preparation of consolidated financial statements, including the translation of the financial statements of foreign subsidiaries. Accounting for investments in associates and joint ventures is also analysed. The section closes with an examination of how information about the segments of such organisational structures is prepared.

The following common themes flow throughout the book:

• Accounting standards are underpinned by a conceptual framework. Accounting standards are not simply a rulebook to be learned by rote. An understanding of the conceptual basis of accounting, and the rationale behind the principles espoused in particular standards, is crucial to their consistent application in the variety of situations a practitioner is likely to face.
• International accounting standards are principles based. Although a specific standard is a stand-alone document, the principles in any standard relate to and are interpreted in conjunction with other standards. This reinforces the conceptual basis of the standards. To appreciate the application of a specific standard, an understanding of the reasoning within other standards is needed. We have endeavoured where applicable to refer to other accounting standards that are connected in principle and application. In particular, extensive references are made to the Basis for Conclusions documents accompanying each standard. This material, although not integral to the standards, explains the reasoning process used by the IASB as well as providing indicators of changes in direction being proposed by the IASB.
• Accounting standards have a practical application. The end product of the standard setting process is applied by accounting practitioners in a variety of organisational structures and practical settings. While a theoretical understanding of a standard is necessary, practitioners must be able to apply the relevant standard. The author of each chapter has demonstrated the practical application of the accounting standards by providing case studies, examples and journal entries (where relevant). The references to practical situations require the reader to pay close attention to the detailed information provided, but such a detailed examination is essential to an understanding of the standards. Having only a broad overview of the basic principles is insufficient.