WILD/KWOK: Financial Accounting Information for Decisions - IFRS

Shifting from a U.S. scenario to a global focus, this book transforms John Wild's popular U.S. financial accounting textbook into one based on International Financial Reporting Standards (IFRS). The chapters have been rewritten with an IFRS focus, global examples, new chapter-opening vignettes featuring Asian entrepreneurs, and updated comprehensive instructor supplements and offerings of new questions and assignments. The following gives a chapter-by-chapter synopsis:

Chapter 1 A good business idea needs to be accounted for. The opening story features a unique ice cream café churning out potent liqueur flavors. Highlights of the chapter include

• Early introduction to the "products" of financial accounting — the financial statements
• New real-life examples such as accounting frauds worldwide
• Description, updates, and references to resources on IFRS
• Revised return on assets analysis using IFRS-reporting company Nestlé
• Some revised end-of-chapter questions include other IFRS-reporting companies such as Adidas

Chapter 2 The Japanese is still in. Chapter 2 features a niche store that carries apparel and accessories from the well-known Harajuku and Akihabara Streets in Tokyo. To explicate the basics of accounting records, the highlights of the chapter include

• New presentation of Transaction Analysis: Identify — Analyze — Record — Post: a more logical and simpler presentation of transaction analysis
• Clearer links to the financial statements
• Revised debt ratio analysis using IFRS-reporting company Adidas
• New questions on real-life companies such as Heineken
• Some revised end-of-chapter questions include IFRS-reporting companies and discussion on global accounting qualifications

Chapter 3 Arranging love through lunch dates is an idea from the West that is taking off in Asia. Like many other types of businesses, the featured entrepreneur receives payments in advance and must account appropriately over time. Accounting adjustments are discussed with other highlights, which include

• Discussion of IFRS financial statement presentation formats, and how they are different from other GAAP formats
• Revised profit margin and current ratio analyses using IFRS-reporting company Nestlé
• Some revised end-of-chapter questions on IFRS reporting companies, including L'Oréal

Chapter 4 Fall in love with fabric creations as the company in the opening story introduces the topic of merchandising operations. Highlights include

• More details on IFRS financial statement formats, including the separation of some key items such as interest
• Revised acid-test and gross margin ratios analyses using IFRS-reporting company Nestlé
• For revised end-of-chapter questions, another well-known company, Puma, joins in the list of IFRS reporting companies

Chapter 5 Have your cake the way you like it. The entrepreneur in the opening story shows how her cake decorating items, coupled with her training, can help customers make the perfect cake. Highlights of this inventory chapter include

• Detailed discussion on the key areas where IFRS differs from U.S. GAAP: choice of inventory methods and application of lower of cost or market
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 6 Beauty is profit in the eyes of the entrepreneur. The chapter opener features a nail services business that grew to provide comprehensive beauty services. As it expands, the need for stringent internal controls becomes more apparent. Highlights of the chapter include

• New global Internet fraud resources
• New global examples of retailers and their inventory control systems
• New example on Internet crime complaint statistics
• Discussion of internal controls as applied by IFRS-reporting company Heineken
• Revised days' sales uncollected analysis using IFRS-reporting companies Nestlé and Kraft Foods
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 7 "Your bill has been settled." The opening story features a business that provides boardgames for play besides food and drinks. Businesses have the choice of letting customers pay by cash or credit, and this chapter elaborates on the treatment of receivables popular with big companies. Highlights include

• Global examples on major retailers' receivables
• Revised accounts receivable turnover analysis using IFRS-reporting companies Carrefour and Tesco
• Some revised end-of-chapter questions based on IFRS-reporting companies, including a Chinese company

Chapter 8 Desserts spell sweet success for an enterprising restaurant serving custom-made premier desserts paired with wine. Such a business needs to invest in capital expenditures. Highlights of this chapter on long-term assets include

• Updates for IFRS treatment of increases and decreases in values of property, plant and equipment and intangible assets
• Revised total asset turnover analysis using IFRS-reporting companies Nestlé and Kraft Foods
• Some revised end-of-chapter questions based on IFRS-reporting companies, including comparative analysis with U.S. competitors

Chapter 9 A driving force. Two successful entrepreneurs show that the business of motivational training can reap great rewards. As most of its "assets" are people, employee wages and benefits are the business's most significant expenses. Highlights of this chapter include

• Revisions for IFRS treatment of contingent liabilities
• New diagram for contingent liabilities
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 10 Swimming in a brave new world. Chapter 10 opens with the founder of a fish business, which is now a major listed company. Expansion has come at the cost of borrowing and a delicate balance must be maintained. Long-term funding is the focus of this chapter. Other highlights of this chapter include:

• IFRS treatment of bonds and leases
• Revised debt-to-equity ratio analysis using an IFRS-reporting company
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 11 "Do not take air for granted" is what patients with a special pulmonary disease would tell us. The opening story shows how three entrepreneurs designed a portable oxygen system to help these patients and managed to attract equity financing from investors. Highlights of the chapter include

• Revisions with IFRS treatment of preferred stock
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 12 Everyone loves animation! The founders of one of the most prolific animation companies in Asia discover that managing cash flows for their production projects is a challenging task. This chapter shows how profitable companies still have to manage cash flows well. Other highlights of this chapter include

• A new diagram on cash effects of changes in current assets and liabilities
• Detailed explanations on the preparation of indirect cash flow method using IFRS, which shows tax and interest separately
• Revised cash flow on total assets analysis using IFRS-reporting company Nestlé
• Some revised end-of-chapter questions based on IFRS-reporting companies

Chapter 13 A fool and his money are soon parted. Two brothers set up the famous Motley Fool Website to help people become more savvy in financial matters. This final chapter on basic financial statement analysis aptly wraps up the book. Highlights include

• Revisions with IFRS-reporting companies Adidas and Puma
• Revised appendix on IFRS format for statement of comprehensive income
• Some revised end-of-chapter questions based on IFRS-reporting companies and IFRS statement formats