Financial Accounting: A New Zealand Perspective (3e) : 9781442545830

Financial Accounting: A New Zealand Perspective (3e)

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Update: March 2017 - the new Fourth Edition of this text is now available from Edify Limited. Students - please check which edition is required for your course before purchasing.

This book has been written primarily for accountancy students in their second year of study. It focuses on the practical aspects of intermediate financial accounting, complemented by a discussion of the underlying theory. This text is particularly suitable for students of the NZ Diploma in Business second level paper 601 Financial Accounting.

Each chapter provides

  • Learning objectives
  • Clear worked examples to illustrate methods
  • Real-life examples drawn from New Zealand company information
  • Chapter summaries 
  •  A comprehensive set of questions and exercises to test the reader’s grasp of the contents


A CD included in the back of the book provides students with: additional questions, exercises and solutions; current articles on various topics included in the book, plus supplemental chapters covering: 

  •  e-commerce
  • trust accounting 
  • accounting for the primary sector
  • accounting for insolvency for sole traders and partnerships (accounting for company liquidations and receiverships is still included as a chapter in the main text).

Instructor supplements are available free of charge to lecturers who adopt this text. These supplements include the solutions to end-of-chapter questions and exercises, and PowerPoint slides for each chapter.

Table of contents
  1 The framework for financial reporting
  2 The framework for the preparation and presentation of financial statements 
  3 Accounting for equity
  4 Financial reporting presentation and disclosures
  5 Accounting for property, plant and equipment
  6 Accounting for inventory
  7 Accounting for intangibles, provisions and contingencies
  8 Accounting for leases and hire-purchase contracts 
  9 Accounting for Goods and Services Tax
10 Analysis and interpretation of financial statements
11 Accounting for business combinations
12 Accounting for liquidations and receiverships .
13 Environmental and social responsibility accounting
Present value tables
New to this edition

The text has been updated to meet the requirements of the New Zealand International Accounting Standards (NZ IAS), to January 2011. At the time of writing, a number of initiatives are in the pipe-line that will have implications on current standards and the related processes - the text briefly describes the Ministry of Economic Development (MED) and the Accounting Standards Review Board (ASRB) discussion documents relating to the proposed framework for financial reporting. Current financial statements from companies who have used the NZ IASs in the preparation of these documents have been included to illustrate the application of the new standards.

In particular Chapter 4 Financial Statements have been updated to cover Other Comprehensive Income and NZ IAS 1’s new matrix format Statement of Changes in Equity and Chapter 11 is updated to cover changes in the treatment of pre- and post-acquisition dividends from subsidiaries to a parent, as well as terminology from “future tax benefit” to “deferred tax asset”, and “discount” or “excess” to “gain on bargain purchase”, in line with international accounting conventions.

Author biography

Murray Smart has taught accounting and finance papers at The Open Polytechnic of New Zealand since 1973. In 1992 he was seconded to the University of the South  Pacific, in Suva, Fiji, to teach in that institute’s accounting programme. During 1994–1995 he assisted a consortium of British universities to set up a first-year accounting programme in Karachi for Pakistani students who then progressed to the United Kingdom to complete their degrees. 

Murray has a Master of Business Studies (MBS) and Bachelor of Business (BBS) from Massey University and a Bachelor of Commerce and Administration with Honours (BCA (Hons)) from Victoria University of Wellington

Nazir Awan has taught Financial and Management Accounting courses at The Open Polytechnic since 2005. Prior to joining The Open Polytechnic he held various senior financial management roles in diverse companies and industries including: Telecommunications and Postal industries in New Zealand, Banking in Canada, and The Steel industry in the UK.

Nazir has a Master of Science (MSc) from the University of East Anglia, Norwich, England. He is a Chartered Accountant, a member of the Association of Management Accountants (Canada) and a fellow of the Association of Chartered Certified Accountants (UK)

Richard Baxter has taught financial accounting at the Open Polytechnic since 2009, and accounting, management, marketing, computer accounting, tax, economics, tax and small business at various institutions, including Taranaki Polytechnic (now Western Institute of Technology), Massey University and Whitireia Polytechnic.

He has produced numerous in-house texts, and practical accounting workbooks for financial accounting and MYOB. His practical experience includes work in the freezing works industry, agricultural, small business accounting and IT support sectors. Richard has a Bachelor of Business Studies (BBS) from Massey University, a Diploma from JSMI (Texas), and is a provisional member of the NZ Institute of Chartered Accountants.

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