Introduction to Financial Accounting

August 30, 2013 | Updated: February 3, 2016
Author: David Annand, Henry Dauderis

Good news! This book has been updated and revised. An adaptation of this book can be found here: open.bccampus.ca

Based on International Financial Reporting Standards, this textbook was written by Henry Dauderis and published by Athabasca University's David Annand, EdD, MBA, CA, Professor of Accounting in the Faculty of Business. It contains 13 chapters and includes discussion questions, cases and comprehension problems. An Instructors Manual for this book is available. Please contact the author directly at david.annand@fb.athabascau.ca to get access to the Instructors Manual.

Subject Areas
Business and Management, Accounting

Original source
business.athabascau.ca

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textbook cover image
Calculating Taxes Up And Down (http://www.flickr.com/photos/teegardin/5913069484/in/photostream/) by Ken Teegardin (http://www.flickr.com/photos/teegardin/) used under a CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

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Introduction to Financial Accounting by David Annand, Henry Dauderis is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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Reviews (1) Avg: 4.4 / 5

Kathleen Ross, CPA, CGA

Institution:Royal Roads UniversityTitle/Position: Associate FacultyCreative Commons License

Q: The text covers all areas and ideas of the subject appropriately and provides an effective index and/or glossary

The text covers all major areas of basic accounting. The glossary is comprehensive, but the text would benefit from and index.

Comprehensiveness Rating: 4 out of 5

Q: Content is accurate, error-free and unbiased

There are some errors in the text, but none are major and can be corrected relatively easily.

Ch 1 - Includes questions at the beginning that are ‘discussed in Chapter 1’. However, they are NOT actually discussed in the chapter (such as questions 7 and 9)

Ch 6 - Use of CRJ and CDJ in ledger will be confusing to students as special ledgers have not been mentioned previously in the text. An short explanation will be helpful here.

Ch 9 - Transaction 5 - IAS 38.69 requires that start up costs be expensed not capitalized.

Ch 13 - Second line of first para - precious s/b previous

Content Accuracy Rating: 4 out of 5

Q: Content is up-to-date, but not in a way that will quickly make the text obsolete within a short period of time. The text is written and/or arranged in such a way that necessary updates will be relatively easy and straightforward to implement

There are some issues with the context not current to IFRS standards, most of the material has been updated but there are some points that need to be addressed. For instance, in Chapter 1, Part D discusses GAAP - no longer state GAAP, now have IFRS and statements are prepared (and auditors confirm that statements are prepared in accordance with IFRS) and in Chapter 2 when discussing the cost principle need to say that amounts are *initially* recorded (cannot say “always” as adjustments are made and might be made related to FV). (for other issues see suggestions)

Relevance Rating: 4 out of 5

Q: The text is written in lucid, accessible prose, and provides adequate context for any jargon/technical terminology used

The text is written in lucid, accessible prose for accounting students.

Clarity Rating: 5 out of 5

Q: The text is internally consistent in terms of terminology and framework

See comments on IFRS.

Consistency Rating: 4 out of 5

Q: The text is easily and readily divisible into smaller reading sections that can be assigned at different points within the course (i.e., enormous blocks of text without subheadings should be avoided). The text should not be overly self-referential, and should be easily reorganized and realigned with various subunits of a course without presenting much disruption to the reader.

The text can be easily and readily divisible into smaller reading sections and modules.

Modularity Rating: 5 out of 5

Q: The topics in the text are presented in a logical, clear fashion

The topics are presented in a logical and clear fashion.

Organization Rating: 5 out of 5

Q: The text is free of significant interface issues, including navigation problems, distortion of images/charts, and any other display features that may distract or confuse the reader

The text is free of significant interface issues, only two minor issues were found:

Ch 4 - Arrows for partial income statement at end of part C point to wrong months (opening inventory of $4,000 points to inventory on balance sheet at end of month of $6,000).

Ch 7 - Page 273 - blue box on net income covers text.

Interface Rating: 4 out of 5

Q: The text contains no grammatical errors

No grammatical errors were noted in the review of the text.

Grammar Rating: 5 out of 5

Q: The text is not culturally insensitive or offensive in any way. It should make use of examples that are inclusive of a variety of races, ethnicities, and backgrounds

The text is not culturally insensitive or offensive. Examples are as generic as possible and therefore backgrounds, races and/or ethnicities are limited.

Cultural Relevance Rating: 4 out of 5

Q: Are there any other comments you would like to make about this book, for example, its appropriateness in a Canadian context or specific updates you think need to be made?

The selection of exercises for each chapter is excellent with a good of variety in styles and questions.
 
IFRS does not have a matching principle. It stresses the need to recognize elements when they satisfy the definition and recognition criteria. While most expenses would meet the recognition criteria under a matching concept, it is not accounting based on IFRS standards as the name of the text implies. The analysis, however, does not refer to matching and, for the most part, chapter 3 could be used with an additional note added to the chapter regarding the fact that the matching principle is for demonstration only.

In Chapter 5, LIFO is not permitted under IFRS, the only reference to this is that LIFO valuation is prohibited for reasons “beyond the scope of this text”. Might be been better to remove the comparisons using this method.

Chapter 13 provides an excellent worksheets on the indirect method, but no presentation of the direct method which is the preferred method under IFRS.

Overall, this is a great textbook that can be used easily for a first term accounting course with minor revisions.