Financial Accounting: Including International Financial Reporting Standards

Prof. Jan Williams, Prof. Sue Haka, Prof. Mark Bettner, Prof. Joseph Carcello, Mr. Nelson Lam and Dr. Peter Lau

About the Book

Financial Accounting: Including International Financial Reporting Standards is written with the Asian student in mind. Based on the market-leading U.S. title, Financial Accounting (14th edition), this textbook retains the features that have contributed to the success of the U.S. book. In addition, it incorporates examples, case studies, and questions drawn from Asian contexts and practices. Combined with robust end-of-chapter exercises and exciting interactive supplementary materials, Financial Accounting: Including International Financial Reporting Standards is absolutely relevant and essential for instructors and students in the region.

Key features:

  1. A focus on International Financial Reporting Standards (IFRS) and IFRS-reporting companies, including HSBC, Singapore Airlines and adidas
  2. Actual company cases opening every chapter, which ground the theme of that chapter in a real-life example; e.g. Philips, Cathay Pacific Airlines, and Sinopec
  3. An “Ethics, Fraud & Corporate Governance” section in every chapter focuses students’ awareness on situations involving ethical breaches, frauds, and negative corporate governance implications
  4. Comprehensive cases studies, problems, and exercises that challenge students’ understanding and critical thinking
  5. End-of-Chapter Reviews summarize the learning objectives and key accounting terms of each chapter


About the Authors

Prof. Jan R. Williams
Professor Jan R. Williams is Dean of the College of Business Administration and the Stokely Foundation Leadership Chair at the University of Tennessee, where he has been a faculty member since 1977. He received a BS degree from George Peabody College, an MBA from Baylor University, and a PhD from the University of Arkansas. He previously served on the faculties at the University of Georgia and Texas Tech University. A CPA in Tennessee and Arkansas, Dr. Williams is also the coauthor of three books and has published over 70 articles on issues of corporate financial reporting and accounting education. He served as president of the American Accounting Association in 1999–2000 and has been actively involved in Beta Alpha Psi, the Tennessee Society of CPAs, the American Institute of CPAs, and AACSB International—the Association to Advance Collegiate Schools of Business—the accrediting organization for business schools and accounting programs worldwide.

Prof. Susan F. Haka
Professor Susan F. Haka is the Ernst & Young Professor of Accounting in the Department of Accounting and Information Systems at Michigan State University. Dr. Haka received her PhD from the University of Kansas and a master’s degree in accounting from the University of Illinois. She is the 2008–09 president of the American Accounting Association and has previously served as vice president of finance, director of the Doctoral Consortium, and president of the Management Accounting Section. Dr. Haka is active in editorial processes and has been editor of Behavioral Research in Accounting and an associate editor of Journal of Management Accounting Research, Accounting Horizons, The International Journal of Accounting, and Contemporary Accounting Research. Dr. Haka has been honored by Michigan State University with several teaching and research awards, including both Universitywide Teacher-Scholar and Distinguished Faculty awards.

Prof. Mark S. Bettner
Professor Mark S. Bettner is the Christian R. Lindback Chair of Accounting & Financial Management at Bucknell University. Dr. Bettner received his PhD in business administration from Texas Tech University and his MS in accounting from Virginia Tech University. He has received numerous teaching and research awards. In addition to his work on Financial Accounting and Financial & Managerial Accounting, he has written many ancillary materials, published in scholarly journals, and presented at academic and practitioner conferences. Professor Bettner is also on the editorial advisory boards of several academic journals, including the International Journal of Accounting and Business Society and the Accounting Forum, and has served as a reviewer for several journals, including Advances in Public Interest Accounting and Hospital and Health Services Administration.

Prof. Joseph V. Carcello
Professor Joseph V. Carcello is the Ernst & Young Professor in the Department of Accounting and Information Management at the University of Tennessee. He also is the cofounder and director of research for UT’s Corporate Governance Center. Dr. Carcello received his PhD from Georgia State University, his MAcc from the University of Georgia, and his BS from the State University of New York College at Plattsburgh. Dr. Carcello is currently the author or coauthor of four books, more than 50 journal articles, and two monographs. Dr. Carcello serves on the Public Company Accounting Oversight Board’s Standing Advisory Group. He also testified before the U.S. Treasury Department’s Advisory Committee on the Auditing Profession and has served as a member of a COSO task force that developed guidance on applying COSO’s internal control framework for smaller public companies. Dr. Carcello is active in the American Accounting Association—he serves as an associate editor of Accounting Horizons and serves on the editorial boards of The Accounting Review, Auditing: A Journal of Practice & Theory, and Contemporary Issues in Auditing. Dr. Carcello has consulted with three of the Big Four accounting firms, regional and local accounting firms, and the Securities and Exchange Commission.

Mr. Nelson C. Y. Lam
Mr. Nelson C. Y. Lam is a practising CPA with his own professional accounting and consulting firms, and Vice-Chairman at Accounting Development Foundation Limited. He also serves as Visiting Associate Professor at United International College of the Beijing Normal University and the Hong Kong Baptist University and as Independent Non-executive Director of China Resources Cement Holdings Limited, a publicly-listed entity. He is very active in IFRS-related projects, which include over 500 consultancy projects, seminars, and conferences in the Asia Pacific. His firm website,, contains more than 400 of his public presentations and publications for free download. He is also the co-author of three IFRS and auditing books. In addition to holding an MSc in finance from the Chinese University of Hong Kong, an MBA from the Hong Kong University of Science and Technology, and a BBA (Hons) in accounting from the Hong Kong Baptist University, he is also a CFA Charter holder, a CPA in Australia, Hong Kong, and USA, a fellow member of ACCA, and a Chartered Accountant in UK. He has received numerous awards for his contributions to professional accountancy examinations and also won a championship in an accounting case competition that accepted entries from university professors.

Dr. Peter T. Y. Lau
Dr. Peter T. Y. Lau is Associate Dean of the School of Business and BBA Program Director at the Hong Kong Baptist University, where he has been a faculty member since 1987. He is Independent Non-executive Director of a Hong Kong-listed company. He received a Bachelor of Commerce (summa cum laude) in accounting from Saint Mary’s University, an MBA from Dalhousie University and a PhD in accounting from the Chinese University of Hong Kong. Dr. Lau is also a Chartered Accountant (Canada), a Certified Management Accountant (Canada), a Fellow of the Hong Kong Institute of Certified Public Accountants, and an Associate of the Taxation Institute of Hong Kong. Dr. Lau has more than 24 years’ teaching experience and has been serving or previously served as the external examiner for various accounting programs. He was also an examiner of the Qualification Program of the Hong Kong Institute of Certified Public Accountants. Dr. Lau has published over 20 journal articles and he is the co-author of Intermediate Financial Reporting: An IRFS Perspective, Auditing and Assurance in Hong Kong, and Hong Kong Auditing.

Table of Contents

1. Accounting: information for decision making
2. Basic financial statements
3. The accounting cycle: capturing economic events
4. The accounting cycle: accruals and deferrals
5. The accounting cycle: reporting financial results
Comprehensive problem 1: Susquehanna equipment rentals

6. Merchandising activities
7. Financial assets
8. Inventories and the cost of goods sold
Comprehensive problem 2: guitar universe company

9. Property, plant, and equipment, intangible assets and natural resources
10. Liabilities
11. Shareholders’ equity: capital
Comprehensive problem 3: McMinn retail limited

12. Profit and changes in retained earnings
13. Statement of cash flows
14. Financial statement analysis
Comprehensive problem 4: Adidas ag, Herzogenaurach

15. Global business and accounting

Appendix A: Adidas ag, Herzogenaurach 2009 consolidated group financial statements (IFRS) and additional information
Appendix B: the time value of money: future amounts a