This edition’s revisions are driven by instructors and students. Based on International Financial Reporting Standards (IFRS), the chapters have been revised with chapter-opening vignettes featuring Asian entrepreneurs, and updated comprehensive instructor supplements and offerings of new questions and assignments. Learning text and questions have been updated using the latest 2012 or 2013 financial statements of Adidas, Nestle, and Samsung included as appendices, with weblinks to other companies such as Puma, L’oreal, 361 Degrees, and Li-Ning. This diversity of IFRS reporting companies from both Europe and Asia will enhance learning for users.

The following gives a chapter-by-chapter synopsis, and includes revisions to the earlier edition as well as new IFRS-related material:

• Expanded explanation of IASB’s conceptual framework for financial reporting as part of discussion of Generally Accepted Accounting Principles
• Inclusion of updated titles and formats of IFRS financial statements including the Statement of Profit or Loss and Other Comprehensive Income

• Expanded discussion and illustration on the report versus the account formats of the Statement of Financial Position

• New Decision Update on the new revenue standard IFRS 15 Revenue from Contracts with Customers

• New opening story and accompanying decision insight from EyePower Games, a creator of educational and classroom technology tools
• Illustration of the formats of the Statement of Financial Position and the Statement of Profit or Loss and Other Comprehensive Income using Nestle, Adidas, and Samsung

• Detailed discussion of Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for a merchandising company

• Enhanced discussion and illustration of IFRS inventory methods specific identification, FIFO, and weighted average cost in main text; LIFO (not allowed under IFRS) moved to Appendix for reference
• Greater clarification on lower of cost and net realizable value

• Updated materials on technological advancements

• Updated materials on frauds involving technology

• Enhanced discussion on the allowance method used under IFRS

• Revised definition of residual value as clarified in IAS 16 Property, plant and equipment
• Enhanced discussion and examples on the revaluation model allowed under IFRS
• Enhanced discussion of impairment

• Enhanced discussion on contingent liabilities with examples using Apple, Samsung, and Nokia

• Updated Net problem to 2012 actual LP

• Major revision to enhance discussion of the formats for Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity, and Statement of Financial Position; these formats are also explained using Nestle’s financial statements
• Revised questions and problems based on the formats of the financial statements

• Revised terms in line with IFRS terminology
• Secret Recipe—new opener with new entrepreneurial assignment

• Discussion of the revised IFRS 9 Financial Instruments in a new Appendix

• More in-depth explanation of the IFRS indirect format for statement of cash flows, in particular the adjustment of items from profit to cash
• Revised explanation of free cash flows

• Updated 2013 financials of Adidas and Puma for all ratios and examples