Instructor’s Solutions Manual
Financial Accounting and Reporting Twentieth edition
Jamie Elliott Barry Elliott
For further instructor material please visit:
go.pearson.com/uk/he/resources ISBN: 978-1-292-40108-9
Pearson Education Limited 2022 Lecturers adopting the main text are permitted to download and photocopy the manual as required.
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PEARSON EDUCATION LIMITED KAO Two KAO Park Harlow CM17 9SR United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk This edition published 2022 © Pearson Education Limited 2022 The rights of Jamie Elliott and Barry Elliott to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Pearson Education is not responsible for the content of third-party internet sites. ISBN 978-1-292-40108-9 All rights reserved. Permission is hereby given for the material in this publication to be reproduced for 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. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. 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.
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Contents Chapters Part 1
Pages Introduction to accounting on a cash flow and accrual accounting basis
5
1
Accounting and reporting on a cash flow basis
6
2
Accounting and reporting on an accrual accounting basis
11
Preparation of internal and published financial statements
17
Preparation of financial statements of profit or loss and other comprehensive income, changes in equity and financial position
18
4
Annual Report: additional financial disclosures
42
5
Statements of cash flows
59
6
Accounting for price-level changes
70
Regulatory framework – an attempt to achieve uniformity
89
7
Financial reporting – evolution of global standards
90
8
Concepts – evolution of an international conceptual framework
92
9
Revenue recognition
96
Statement of financial position – equity, liability and asset measurement and disclosure
116
Part 2 3
Part 3
Part 4
10 Share capital, distributable profits and reduction of capital
117
11 Liabilities
128
12 Financial instruments
136
13 Employee benefits
156
14 Taxation in company accounts
166
15 Property, plant and equipment (PPE)
175
16 Leasing
190
17 Intangible assets
200
18 Inventories
213
19 Construction contracts
225
Part 5
Consolidated accounts
242
20 Accounting for groups at the date of acquisition
243
21 Preparation of consolidated statements of financial position after the date of acquisition
262
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Elliott, Financial Accounting and Reporting, 20e, Instructor’s Solutions Manual
22 Preparation of consolidated statements of profit or loss, changes in equity and cash flows
268
23 Accounting for associates and joint arrangements
286
24 Introduction to accounting for exchange differences
302
Part 6 Interpretation
317
25 Earnings per share
318
26 Review of financial ratio analysis
329
27 Analysis of published financial statements
352
Part 7 Accountability
378
28 Corporate governance
379
29 Ethical behaviour and implications for accountants
384
30 Integrated reporting: sustainability, environmental and social
388
Weblinks for Financial Accounting and Reporting
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397
PART 1
Introduction to accounting on a cash flow and accrual accounting basis
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