Introduction to Financial Accounting - Second Edition (Revised)

Description: THIS BOOK WILL BE ARCHIVED ON OCTOBER 1, 2018, AS IT HAS BEEN REPLACED BY A NEW EDITION. Based on International Financial Reporting Standards, this textbook was written by David Annand, EdD, MBA, CPA, CA, and Professor of Accounting in the Faculty of Business at Athabasca University. Each chapter includes questions and problems for review and feedback. Solutions are provided. The text and ancillary materials are freely-sharable under a Creative Commons CC-BY-SA-NC licence. The e-text version is extensively bookmarked for easy access and onscreen reading. Suggested solutions are linked to the end-of-chapter material in this version. Text and student solutions manual files are also available that are suitable for printing. A student workbook provides formatted outlines for all problems contained in the text. Students can print outlines as they need them, and fill in responses manually. Four randomly-generated Excel-based exercises are available. These provide unlimited review and feedback about a) recording transactions in a worksheet; b) recording journal entries and preparing financial statements; c) preparing adjusting and closing entries, and financial statements; and d) calculating depreciation and preparing journal entries for disposal of equipment. A comprehensive, randomly-generated case is also available. This requires the preparation of 18 different year-end adjusting entries and all four types of financial statements, and calculation and analysis of 16 different financial statement ratios. An example is included on this webpage. Unique exercises can be created for any number of individual students or groups upon request to davida@athabascau.ca. A 140-item exam bank, and a complete instructor’s solutions manual to all text and exam bank material are also available upon request to davida@athabascau.ca. In addition, a complete set of instructor PowerPoint slides has been developed by Lyryx Learning Inc. and adapted to this version of the text. Files in this book were last updated on February 22, 2017 (version 2.2). For details on updates and edits, see the Versioning History page.

Author: David Annand, Athabasca University

Original source: open.bccampus.ca

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DOWNLOAD Student Solutions Manual - EDITABLE: Word file (.docx) (3 MB)

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WEBSITE Instructor Resource: Exam Bank (email davida@athabascau.ca)

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DOWNLOAD Textbook - EDITABLE: Word files (.docx) (5 MB)

DOWNLOAD Textbook & Student Solutions Manual - etext (.pdf) (8 MB)

DOWNLOAD Textbook - Print (.pdf) (4 MB)

WEBSITE Instructor Resource - End-of-course Assignment (0.23 MB)

PRINT Buy a print copy: Textbook

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WEBSITE Versioning History (0.02 MB)

WEBSITE Instructor Resource - PowerPoint sildes (12 MB)

WEBSITE Student Resource - Practice Exercises (0.21 MB)

Introduction to Financial Accounting - Second Edition (Revised) by David Annand, Athabasca University is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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Reviews for 'Introduction to Financial Accounting - 2nd Edition (Revised)'

Number of reviews: 2

Average Rating: 4.35 out of 5

1. Reviewed by: Rosalie Harms

Institution: University of Winnipeg
Title/Position: Department Chair, Business and Admin
Overall Rating: 3.8 out of 5
Date: May 22, 2016
License:

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

No I don't think so. I think there are some gaps - I would like to see a chapter on investments, constructing the statement of cash flows as well as a more robust demonstration of the ADA for A/R, while other chapters were to complex. ie. Chapter 11 accounting fro treasury shares and participative preferred shares and the example on the debt versus equity financing which might be better suited for coverage in a Corp Fi course. There is inconsistency in terminology and terminology that is no longer used under IFRS ie. matching principle. There is not a clear conversation on IFRS and ASPE - where and how each is applied and the differences between the two. The textbook begins by indicating that is based on IFRS and then has an entire chapter dedicated to partnerships and proprietorships without explicit explanation that IFRS does not apply to these entities.

Comprehensiveness Rating: 3 out of 5

Q: Content is accurate, error-free and unbiased

As indicated early there is terminology issues and inconsistencies between what is appropriate for under IFRS versus ASPE, this should be cleaned up. Ie matching principle, net income versus profit, statement of profit and loss. New revenue recognition terminology. I think the IFRS framework should also be reviewed.

Content Accuracy Rating: 3 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

I think the consistency of using one company (Big Dog) as an ongoing example is very good and lends itself to relatively straightforward and easy updates. Most content is current (IFRS inconsistencies aside). I just found the content to be to be overly advanced in some areas with gap coverage in other areas, given the coverage I would like to have for our first year accounting students that are looking to pursue an accounting designation. Reference back to the CPA map for Module 1 might be helpful.

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

It is a fairly easy reading textbook, which is excellent. This is particularly good for young students new to accounting or with very little business experience. The examples and chapter demonstrations are easy to follow and are logical.

Clarity Rating: 4 out of 5

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

No I don't think this is true. As indicated I think the IFRS framework is not clearly defined or adhere to and I think ASPE need to be addressed and defined at the first year level.

Consistency Rating: 2 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.

I would agree with this statement. The text content is easy to navigate. Overall it is one of the easier to follow accounting textbooks I have seen.

Modularity Rating: 5 out of 5

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

Yes I would agree with this statement for the most part. I like that the liabilities section has been broken down into two chapters - both current and non current. However, I think that the A/R section could have been better developed and is lost in the Internal control chapter. A more robust conversation on what constitutes an appropriate control environment would have also enhanced this section.

Organization Rating: 4 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

There are a few typos - amortization versus amortisation. Also on page 383 - Professional Fess versus Fees. But other than this nothing significant. There is a very clear, logical and orderly flow to the examples.

Interface Rating: 4 out of 5

Q: The text contains no grammatical errors

Addressed in previous section.

Grammar Rating: 4 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

Not sure this applicable, for the most part examples are focused on accounting and financial information not particular races or ethnicities. There are no company names that I found offensive or non inclusive.

Cultural Relevance Rating: 5 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?

Nothing that I have not already addressed in my previous comments. I really think it is important to provide a clear discussion regarding IFRS versus ASPE standards in relationship to GAAP and Canadian reporting requirements. I think CRA requirements are less relevant in an Introduction to Accounting textbook and will be covered in more detail in the Intermediate courses. Highlighting how IFRS and ASPE differ and may be applied would really enhance this text. I think this is a significant gap and will lead to confusion for students moving to more advanced studies.

2. Reviewed by: John O'Brien

Institution: Thompson Rivers University - Open Learning
Title/Position: Open Learning Faculty Member - Delivers courses to 150 learners mainly in BC
Overall Rating: 4.9 out of 5
Date: Dec 21, 2016
License:

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

This text is well done and matches the level of Horngren's 9th Canadian Edition Volume 1 currently in use.
In fact it looks like it also covers the majority of Volume 2 currently in use.
The index provided will help learners find key documents/concepts easily.
The pdf file can be searched as well.

Comprehensiveness Rating: 5 out of 5

Q: Content is accurate, error-free and unbiased

I scanned all the chapters and found them to be of a high quality. I fully expect the examples, comprehensive problems and problems to be accurate and well laid out for the learners. In the event our organization decides to take up this text, then I will know better how error-free it is.

Content Accuracy Rating: 5 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

The text topic as Accounting and has been fairly stable. Changes with IFRS have been folded in lightly through the text.
In my opinion, it would be helpful to include additional references to IFRS as appropriate.

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 material is written clearly with sufficient diagrams to convey the key concept. I found the Accounting Principles to be well done and clearer than the Horngren material.

Clarity Rating: 5 out of 5

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

I found the text organization to closely parallel the text we currently use. The grouping of topics seemed to fit well with what I expected. Basically, the text is consistent in its terminology and framework.

Consistency Rating: 5 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.

I was easily able to divide the text into smaller parts for delivery in the form of two distance courses similar to what we currently follow.
At one point I was looking for basic payroll journal but found a chapter on Current Liabilities that covered that nicely.

Modularity Rating: 5 out of 5

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

The text is aimed at people that may be new to bookkeeping and need a solid grounding in the basic concepts. It provides a solid introduction to concepts with lots of examples to follow. Students familiar with bookkeeping will find the notes an excellent refresher and will build confidence for the new material they will encounter in subsequent chapters.

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

During my initial review of the text I did not find any issues with the navigation, charts or diagrams. Overall, the text was most professional.

Interface Rating: 5 out of 5

Q: The text contains no grammatical errors

None were noticed in my review of the text. Students may spot the odd issue but I am confident it will not be a tripping point for them.

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

Well, all business people need someone to help keep score. I doubt accounting is culturally insensitive or offensive in any way.

Cultural Relevance Rating: 5 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?

I have recommended this text to replace Volume 1 and 2 of Accounting 9th Canadian Version. This is a savings of about $100 for each text which should be passed on to the students. Education is expensive, we need to support the development of Open Textbooks for use in our Universities