Instructor’s Manual International Financial Reporting: A Practical Guide Eighth edition
Alan Melville For further instructor material please visit:
go.pearson.com/uk/he/resources ISBN: 978-1-292-4 4 3945-7
Pearson Education Limited 2022 Lecturers adopting the main text are permitted to download and photocopy the manual as required.
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This edition published 2022 © Pearson Education Limited 2022 The rights of Alan Melville to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Pearson Education is not responsible for the content of third-party internet sites. ISBN: 978-1-292- 43945 5 -7 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers. This publication contains copyright material of the IFRS® Foundation in respect of which all rights are reserved. Reproduced by Pearson Education, Ltd with the permission of the IFRS Foundation. No permission granted to third parties to reproduce or distribute. For full access to IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org. The International Accounting Standards Board®, the IFRS Foundation, the authors and the publishers do not accept responsibility for any loss caused by acting or refraining from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise.
Melville: International Financial Reporting, Instructor's Manual, 8th edition
Contents
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17
Preface Acknowledgements
v vi
The regulatory framework Solutions 1.8 and 1.9
1
The IASB® conceptual framework Solutions 2.7 and 2.8
3
Presentation of financial statements Solution 3.7
5
Accounting policies, estimates and errors Solution 4.7, 4.8 and 4.9
8
Property, plant and equipment Solutions 5.7 and 5.8
10
Intangible assets Solutions 6.8 and 6.9
13
Impairment of assets Solutions 7.7 and 7.8
15
Non-current assets held for sale and discontinued operations Solution 8.7
16
Leases Solutions 9.7 and 9.8
17
Inventories Solutions 10.5 and 10.6
19
Financial instruments Solution 11.6
21
Provisions and events after the reporting period Solution 12.8
23
Revenue from contracts with customers Solutions 13.7 and 13.8
24
Employee benefits Solutions 14.6 and 14.7
26
Taxation in financial statements Solutions 15.7, 15.8 and 15.9
28
Statement of cash flows Solutions 16.8, 16.9 and 16.10
34
Financial reporting in hyperinflationary economies Solution 17.5
39
iii © 2022 Pearson Education Limited. All Rights Reserved.
Melville: International Financial Reporting, Instructor's Manual, 8th edition
Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24
Groups of companies (1) Solutions 18.6 and 18.7
40
Groups of companies (2) Solutions 19.5 and 19.6
45
Associates and joint arrangements Solution 20.5
51
Related parties and changes in foreign exchange rates Solution 21.4
53
Ratio analysis Solutions 22.5, 22.6 and 22.7
54
Earnings per share Solutions 23.6, 23.7, 23.8 and 23.9
59
Segmental analysis Solution 24.6
61
iv © 2022 Pearson Education Limited. All Rights Reserved.
Melville: International Financial Reporting, Instructor's Manual, 8th edition
Preface As indicated in the preface to International Financial Reporting, the main book does not contain solutions for those exercises which are marked with an asterisk. This provides lecturers who have adopted the textbook with a source of problems which may be used for tutorial work and revision. The purpose of this Instructor's Manual is to supply suggested solutions to those exercises. I should like to remind the reader that, whilst some of the exercises are drawn from the past examination papers of the professional accounting bodies, the answers provided here to those questions are entirely my own responsibility. Alan Melville February 2022
v © 2022 Pearson Education Limited. All Rights Reserved.