You are here

Financial Accounting using IFRS
Share
Share

Financial Accounting using IFRS

Third Edition


August 2025 | Cambridge Business Publishers
Formerly published by Cambridge Business Publishers, now published by Sage 

Financial Accounting using IFRS, Third Edition equips students with the accounting techniques and insights necessary to succeed in today’s global business environment. Written for universities that teach International Financial Reporting Standards (IFRS) exclusively, the text helps students understand how financial statements are prepared and how published financial information is used by investors, creditors, analysts, and managers. Designed for the first financial accounting course at the undergraduate or graduate level, this text balances financial statement preparation with analysis and interpretation. Students learn to apply IFRS concepts using real company data drawn from diverse countries and industries, building confidence in working with international financial statements and disclosures.

With a strong real-world orientation, the book integrates focus companies, footnotes, financial analysis discussions, and data-driven assignments throughout. A structured, student-friendly approach ensures students grasp both the mechanics and the meaning of IFRS-based financial reporting.

Instructor Resources/Ancillaries: To access the resources for this title—including the test bank, editable chapter PowerPoint® slides, solution files, and supplementary materials—please follow these easy steps:

  1. Visit mybusinesscourse.com.
  2. Sign in with your instructor account. New to myBusinessCourse™? Create an instructor account here.
  3. From your instructor dashboard, go to the Request Materials page and request access to this title's resources. Verified instructors receive immediate access; new accounts are typically verified within 48 business hours.

 
About the Authors
 
Preface
 
Brief Contents
 
Contents
 
Chapter 1: Introducing Financial Accounting
Roche

 
Demand for Accounting Information

 
Business Activities

 
Financial Statements

 
Financial Reporting Environment

 
Analyzing Financial Statements

 
Organisation of the Book

 
Appendix 1A: Conceptual Framework for Financial Reporting

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
Chapter 2: Constructing Financial Statements

 
Canada Goose

 
Reporting Financial Condition

 
Reporting Financial Performance

 
Reporting on Equity

 
Journalizing and Posting Transactions

 
Analyzing Financial Statements

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 3: Adjusting Accounts for Financial Statements
Canada Goose

 
Accounting Cycle

 
Analyzing and Recording Transactions

 
Adjusting the Accounts

 
Constructing Financial Statements from Adjusted Accounts

 
Closing Temporary Accounts

 
Summarising the Accounting Cycle

 
Financial Statement Analysis

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 4: Reporting and Analyzing Revenues and Receivables
TomTom

 
Reporting Operating Income

 
Reporting Accounts Receivable

 
Analyzing Financial Statements

 
Earnings Management

 
Appendix 4A: Reporting Nonrecurring Items

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 5: Reporting and Analyzing Inventory
VTech

 
Reporting Operating Expenses

 
Inventory Costing Methods

 
Financial Statement Disclosure

 
Analyzing Financial Statements

 
Appendix 5A: LIFO

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 6: Reporting and Analyzing Long-Term Operating Assets
Airbus

 
Introduction

 
Property, Plant, and Equipment (PPE)

 
Analyzing Financial Statements

 
Intangible Assets

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 7: Reporting and Analyzing Liabilities
Samsung Electronics

 
Introduction

 
Current Liabilities

 
Long-Term Liabilities

 
Analyzing Financial Statements

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 8: Reporting and Analysing Leases, Pensions, and Income Taxes
Unilever

 
Introduction

 
Leases

 
Pensions

 
Accounting For Income Taxes

 
Analyzing Financial Statements

 
Summary

 
Guidance Answers . . . You Make The Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 9: Reporting and Analyzing Shareholders’ Equity
Inditex, S.A.

 
Introduction

 
Contributed Capital

 
Earned Capital

 
Analyzing Financial Statements

 
Earnings Per Share

 
Appendix 9A: Dilutive Securities: Further Considerations

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 10: Reporting and Analysing Financial Investments
SoftBank Group

 
Introduction

 
Fair Value: An Introduction

 
Passive Investments

 
Investments with Significant Influence

 
Investments with Control

 
Financial Statement Analysis

 
Appendix 10A: Equity Method Mechanics

 
Appendix 10B: Consolidation Accounting Mechanics

 
Appendix 10C: Accounting for Investments in Derivatives

 
Summary

 
Guidance Answers . . . You Make the Call

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 11: Reporting and Analyzing Cash Flows
Qantas

 
Purpose of the Statement of Cash Flows

 
Preparing the Statement of Cash Flows-Operating Activities

 
Preparing the Statement of Cash Flows-Investing and Financing Activities

 
Additional Detail in the Statement of Cash Flows

 
Analyzing Financial Statements

 
Appendix 11A: A Spreadsheet Approach to Preparing the Statement of Cash Flows

 
Summary

 
Guidance Answers . . . You Make The Call

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Chapter 12: Analyzing and Interpreting Financial Statements
Vodafone Group Plc

 
Introduction

 
Vertical and Horizontal Analysis

 
Return on Investment

 
Liquidity and Solvency

 
Appendix 12A: Analyzing and Interpreting Core Operating Activities

 
Appendix 12B: Pro Forma Financial Statements

 
Appendix 12C: Measuring Return on Financial Leverage

 
Summary

 
Key Ratios

 
Key Terms

 
Multiple Choice

 
Guidance Answers . . . You Make the Call

 
Discussion Questions

 
Mini Exercises

 
Exercises

 
Problems

 
Cases and Projects

 
Solutions to Review Problems

 
 
Appendix A: Compound Interest and the Time Value of Money
Future Value Concepts

 
Present Value Concepts

 
Using Excel to Compute Time Value

 
Key Terms

 
Exercises

 
 
Appendix B: Data Analytics and Blockchain Technology
Data Analytics

 
Blockchain Technology

 
Summary

 
Video Resources For Tableau

 
Multiple Choice

 
Exercises

 
Problems

 
 
Index
Key features
NEW TO THIS EDITION:
  • Added an introduction to Data Analytics in Chapter 1 and an expanded online appendix devoted to data analytics concepts.
  • Updated coverage to reflect the latest IASB standards, including revenue recognition, leases, and financial investments.
  • Updated focus companies to reflect current global business activity and ownership changes.
  • Revised examples, illustrations, footnotes, and assignments using the most recent real-world data.
  • Expanded and refreshed assignments throughout the book to reinforce application and interpretation under IFRS.
KEY FEATURES:
  • IFRS-Exclusive Coverage: Designed specifically for programs teaching International Financial Reporting Standards; U.S. GAAP is not covered.
  • Global Real-World Focus: Extensive use of real companies from multiple countries and industries builds international perspective.
  • Focus Companies by Chapter: Each chapter centers on a real company to demonstrate IFRS concepts in context.
  • Footnotes and Disclosures: Students learn how to interpret footnotes and management disclosures and use them to make business inferences.
  • Integrated Financial Analysis: Nearly every chapter includes ratio analysis applied to the focus company’s IFRS financial statements.
  • Assignments Using Real Data: End-of-chapter assignments require students to analyze current company data and disclosures.
  • Balanced Pedagogical Approach: Combines financial reporting, analysis, interpretation, and decision-making with core mechanics.