Based on the market-leading Financial Accounting (14 Edition), this textbook retains the features of the highly successful U.S. title and also incorporates examples, case studies, and questions drawn from Asian contexts and practices. Its highlights include an emphasis on International Financial Reporting Standards (IFRS) and IFRS-reporting companies; these replace U.S.GAAP terms, materials, and cases. Also included are actual company cases, which ground the chapter's lessons, as well as updated end-of-chapter problem and exercises.

Chapter 1
Accounting: Information for Decision Making. The chapter begins with HSBC, one of the largest banking institutions in the world, which has used IFRS in preparing its financial statements. Highlights of the chapter include:

• Introduction of accounting as a language of business
• The objectives of financial reporting, adapted to the objectives specified in IFRS, i.e. IAS 1 “Presentation of Financial Statements”
• Explanation of the International Accounting Standards Board (IASB) and International Federation of Accountants (IFAC)
• Explanation of the IFAC Code of Ethics for Professional Accountants
• Revised end-of-chapter questions and cases that include other IFRS reporting companies around the world

Chapter 2
Basic Financial Statements. An Asian case, Nintendo, is used to open the chapter, which introduces the primary financial statements in accounting. Highlights of the chapter include:

• Reformatted balance sheet in accordance with the presentation order under IAS 1
• Updated end-of-chapter questions and cases that include other IFRS reporting companies around the world, e.g. Singapore Airlines

Chapter 3
The Accounting Cycle: Capturing Economic Events. The chapter features Nestlé S.A. in discussing how a corporation captures economic events and activities in accounting. Highlights of the chapter include:

• A discussion of the recognition principle
• Alignment of terms with IFRS
• Updated IFRS materials, end-of-chapter questions, and cases, including Tesco and BP

Chapter 4
The Accounting Cycle: Accruals and Deferrals. The chapter explains the purpose and relevant issues of adjusting entries using the case of Genting Hong Kong Limited, a cruise company. Highlights of the chapter include:

• Updated IFRS materials, end-of-chapter questions, and cases, e.g. Peninsula Hotel and China Mobile

Chapter 5
The Accounting Cycle: Reporting Financial Results. The chapter opens with the case of Philips Electronics and explains the preparation of primary financial statements. Highlights of the chapter include:

• Explanation of IFRS primary financial statements, including income statement, statement of changes in equity, and balance sheet
• Replacement of statement of retained earnings with statement of changes in equity
• Revised links between IFRS primary financial statements
• Revised ratio analysis using IFRS terms
• Updated materials, end-of-chapter questions, and cases, including IFRS reporting companies such as Cathay Pacific and Carrefour

Chapter 6
Merchandising Activities. The chapter opener features Marks & Spencer, one of United Kingdom’s leading retailers. Highlights of this chapter include:

• Introduction of the financial statement of a merchandising business
• Explanation of the difference between perpetual and periodic inventory systems
• Updated gross profit margins analyses based on IFRS reporting companies: Marks & Spencer Group (a FTSE 100 company) and Metro Group (a DAX 30 company)
• Updated Internet case study based on Aeon Japan (a Tokyo Stock Exchange company)

Chapter 7
Financial Assets. The accounting treatments on financial assets are introduced and significant changes are made on the accounting of investments and receivable to conform to IFRS requirements. Highlights of this chapter include:

• Singapore Exchange Limited used as the introductory case
• Revision of the valuation basis of investments and receivables to align with IAS 39
• Fair value accounting and impairment requirements of financial assets are revised to meet the requirements of IAS 39
• Updated IFRS terms on financial assets
• Updated materials, end-of-chapter questions, and cases that include IFRS reporting companies such as CLP and China Merchants

Chapter 8
Inventories and the Cost of Goods Sold. The opening story features a DAX 30 company and one of the most important international retailing companies — Metro Group. Highlights of this chapter include:

• Discussion on the different accounting treatment between IFRS and U.S. GAAP: Choices of inventory valuation method and the application of the lower-of-cost-and-net-realisable-value rule
• Revised inventory turnover and operating cycle analyses using IFRS reporting company Aeon Stores (Hong Kong)
• Revised Ethics, Fraud & Corporate governance case using Trend Intelligence.
• Updated end-of-chapter questions that include IFRS reporting companies such as Li & Fung, Marks & Spencer, Wing On, Chow Sang Sang, and Sa Sa

Chapter 9
PPE, Intangible Assets, and Natural Resources. The chapter opens with Cathay Pacific Airways, the recipient of the 2009 Airline of the Year award in the Skytrax World Airline Awards and of the 2009 Best Airline Asia award. Highlights of this chapter include:

• Detailed discussion on the key areas in which IFRS differ from U.S. GAAP: Classification of PPE, intangible assets, and natural resources, and the application of the cost and revaluation models after the initial recognition of PPE
• Revised R&D to Sales analysis based on IFRS reporting companies: PetroChina, Sinopec, Lenovo, Halma, Astrazeneca, GSK, Autonomy, and Sage
• Updated end-of-chapter questions include IFRS reporting companies such as Li & Fung and Hong Kong and China Gas

Chapter 10
Liabilities. This chapter starts with the takeover story of Manchester United Football Club by Malcolm Glazer. Highlights of this chapter include:

• Discussion on the different accounting treatments between IFRS and U.S. GAAP: Choices of inventory valuation method and the application of the lower-of-cost-and-net-realisable-value rule
• Updated end-of-chapter questions include IFRS reporting companies such as Cathay Pacific, PetroChina, and DBS Bank

Chapter 11
Shareholders’ Equity: Capital. The case of Hutchison Whampoa in repurchasing its own share capital is used to introduce the topic of accounting capital. Highlights of this chapter include:

• The classification of share capital is clarified in accordance with IFRS
• Updated share capital and relevant terms to align with IFRS
• Updated end-of-chapter questions and cases that include IFRS reporting companies such as Securities and Futures Commission in Hong Kong and Royal Dutch Shell

Chapter 12
Profit and Changes in Retained Earnings. The chapter begins with Sinopec, the largest refiner of oil in Asia, in introducing how profit or loss items are presented in the income statement. Highlights of this chapter include:

• Reformed income statement that aligns with the requirements of IAS 1
• Updated discussion on discontinued operations
• An emphasis on extraordinary items that are not allowed for presentation under IAS 1
• Replacement of statement of comprehensive income and statement of changes in equity with statement of retained earnings
• Explanation of other comprehensive income and the alternative presentation formats in statement of comprehensive income
• Updated materials, end-of-chapter questions, and cases to include IFRS reporting companies, such as Hutchison Telecommunications, Vodafone, and Ghana Telecommunications

Chapter 13
Statement of Cash Flows. The opening story features CLP Group, the largest external investor in China’s power industry, to illustrate that cash flow is an important consideration for all companies, particularly for a giant company like CLP Group. Highlights of this chapter include:

• Updated You as a Financial Analyst case based on IFRS reporting companies such as MTR, Li & Fung Limited, and Hong Kong and China Gas
• Updated Internet case using CLP Group and Hysan

Chapter 14
Financial Statement Analysis. The case of LVMH Moët Hennessy – Louis Vuitton, a world leader of luxury products, is discussed in the introduction of the tools and measures used in financial statement analyses. Highlights of this chapter include:

• IFRS cases illustrating the tools and measures in financial statement analysis
• Revised ratio analysis that conforms to IFRS terms
• Updated materials, end-of-chapter questions, and cases include IFRS reporting companies, including Volkswagen, China Resources Enterprise, and Tesco plc

Chapter 15
Global Business and Accounting. The chapter features Foxconn, one of the largest manufacturers of electronics and computer components worldwide, and discusses global business and accounting. Highlights of this chapter include:

• Different IFRS cases that illustrate globalization and international trading and accounting issues
• Terms, information, and dates updated from an IFRS perspective
• Updated materials, end-of-chapter questions, and cases