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| Preface to the Fourth Edition | |
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| About the Author | |
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| Acknowledgements | |
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| Context of Accounting | |
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| Introduction to Accounting | |
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| Accounting, accountability and the account | |
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| Introducing the functions of accounting | |
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| A short history of accounting | |
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| The role of financial accounting | |
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| The role of management accounting | |
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| Recent developments in accounting | |
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| The relationship between financial accounting and management accounting | |
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| A critical perspective | |
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| Conclusion | |
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| References | |
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| Questions | |
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| Accounting and its Relationship to Shareholder Value and Corporate Governance | |
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| Capital and product markets | |
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| Shareholder value-based management | |
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| Shareholder value, strategy and accounting | |
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| Company regulation and corporate governance | |
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| The regulation of companies | |
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| Corporate governance | |
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| Principles of corporate governance | |
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| Responsibility of directors | |
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| Audit | |
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| Audit committees | |
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| Stock Exchange Listing Rules | |
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| Risk management, internal control and accounting | |
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| A critical perspective | |
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| Conclusion | |
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| References | |
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| Websites | |
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| Questions | |
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| Recording Financial Transactions and the Principles of Accounting | |
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| Business events, transactions and the accounting system | |
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| The double entry: recording transactions | |
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| Extracting financial information from the accounting system | |
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| Basic principles of accounting | |
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| Accounting entity | |
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| Accounting period | |
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| Matching principle | |
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| Monetary measurement | |
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| Historic cost | |
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| Going concern | |
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| Conservatism | |
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| Consistency | |
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| Cost terms and concepts: the limitations of financial accounting | |
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| Conclusion | |
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| References | |
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| Questions | |
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| Management Control, Accounting and its Rational-Economic Assumptions | |
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| Management control systems | |
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| Planning and control in organizations | |
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| Non-financial performance measurement | |
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| A theoretical framework for accounting | |
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| Conclusion | |
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| References | |
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| Websites | |
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| Interpretive and Critical Perspectives on Accounting and Decision Making | |
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| Research and theory in management control and accounting | |
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| Alternative paradigms | |
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| The interpretive paradigm and the social construction perspective | |
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| Culture, control and accounting | |
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| The radical paradigm and critical accounting | |
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| Power and accounting | |
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| Case study 5.1: easyJet | |
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| Ethics and accounting | |
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| Case study 5.2: Enron | |
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| Case study 5.3: WorldCom | |
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| Conclusion | |
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| References | |
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| The Use of Financial Statements for Decision Making | |
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| Constructing Financial Statements: IFRS and the Framework of Accounting | |
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| International Financial Reporting Standards (IFRS) | |
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| Framework for the Preparation and Presentation of Financial Statements | |
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| Objectives of financial statements | |
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| Qualitative characteristics of financial statements | |
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| Elements of financial statements | |
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| Concepts of capital maintenance | |
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| True and fair view | |
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| Reporting profitability: the Statement of Comprehensive Income | |
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| Reporting financial position: the Statement of Financial Position | |
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| Accruals accounting | |
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| Depreciation | |
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| Specific IFRS accounting treatments | |
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| Accounting for sales taxes | |
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| Accounting for goodwill and impairment testing | |
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| Accounting for research and development expenditure | |
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| Accounting for leases | |
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| Reporting cash flow: the Statement of Cash Flows | |
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| Differences between the financial statements | |
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| Illustration | |
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| A theoretical perspective on financial statements | |
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| Agency theory | |
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| A critical perspective on financial statements and accounting standards | |
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| Conclusion | |
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| Reference | |
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| Websites | |
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| Appendix: IFRS as at 1 January 2011 | |
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| Questions | |
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| Interpreting Financial Statements | |
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| Annual Reports | |
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| The context of financial statements | |
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| Ratio analysis | |
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| Profitability | |
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| Return on (shareholders�) investment (ROI) | |
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| Return on capital employed (ROCE) | |
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| Operating margin (or operating profit/sales) | |
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| Gross margin (or gross profit/sales) | |
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| Overheads/sales | |
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| Sales growth | |
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| Liquidity | |
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| Working capital | |
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| Acid test (or quick ratio) | |
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| Gearing | |
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| Gearing ratio | |
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| Interest cover | |
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| Activity/efficiency | |
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| Asset turnover | |
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| Working capital | |
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| Managing receivables | |
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| Managing inventory | |
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| Managing payables | |
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| Managing working capital | |
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| Shareholder return | |
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| Dividend per share | |
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| Dividend payout ratio | |
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| Dividend yield | |
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| Earnings per share (EPS) | |
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| Price/earnings (P/E) ratio | |
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| The relationship between financial ratios | |
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| Interpreting financial statements using ratios | |
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| Profitability | |
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| Liquidity | |
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| Gearing | |
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| Activity/efficiency | |
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| Shareholder return | |
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| Using the Statement of Cash Flows | |
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| Case study 7.1: HMV Group � interpreting financial statements | |
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| Using Accounting Information for Decision Making, Planning and Control | |