Principles of Accounting (5e) : 9781486010134

Principles of Accounting (5e)

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Pearson New Zealand
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Principles of Accounting introduces students to the general principles and concepts of accounting, including budgeting as well as the analysis and interpretation of financial reports. Written in a clear, easy-to-follow style, the text examines:

  • the concepts on which accounting rests,
  • the methods by which accounting events are measured, and
  • the uses to which accounting information is put.

This very readable book is ideal for students needing to understand financial statements in order to make business decisions. It will also serve those who want to further their studies in accounting and require a solid grounding in the underlying concepts and methods. It helps to demystify the science of accounting, giving an understanding of how financial statements are put together and what they mean.

PLEASE NOTE: The Companion Website content referenced in this textbook is no longer available.

Table of contents

 1 Introduction
 2 The business environment
 3 The New Zealand Framework
 4 The accounting process
 5 The Balance Sheet (Statement of Financial Position)
 6 Income Statement and Statement of Changes in Equity
 7 The Cash Flow Statement
 8 Non-cash impacts on financial statements
 9 Business planning and budgeting
10 Analysis and interpretation of financial statements

Appendix The big picture

New to this edition

This fifth edition outlines the new structure of reporting standards and reporting entities. It explains the role of the External Reporting Board (XRB) and the changes to International Financial Reporting Standards (IFRS) standard setting bodies in New Zealand. Review exercises have been revised for greater emphasis on skills and their application. Real life examples from New Zealand companies ensure the concepts being taught are relevant and up-to-date.

Features & benefits

Key features include:

  • Objectives and rationale at the start of each chapter
  • Key points and definitions of new terms highlighted in the margins
  • Worked examples to illustrate methods
  • Summaries, graded review questions and final checks to test and measure full understanding.

Author biography

Murray Smart has taught accounting and finance papers at various tertiary institutions since 1973, including the Open Polytechnic of New Zealand, Wellington Institute of Technology (WelTec), and currently, Henan University of Technology, Zheng Zhou, China. 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 Studies (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 United Kingdom. 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 (United Kingdom).

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, Central Queensland 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 and the 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 New Zealand Institute of Chartered Accountants.

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