International Financial Reporting and Analysis, 9th edition David Alexander, Ann Jorissen, Martin Hoogendoorn, Carien van Mourik, Collette Kirwan, Petra Inwinkl and Giovanna Michelon Solutions Manual Answers marked can also be found on the student side of the website.
CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL FINANCIAL REPORTING 1 Obviously the scope here is almost endless. Here are three definitions from the US (extracted from Belkaoui (2004: 38) Accounting Theory, 5th edn, Cengage Learning EMEA). ‘The Committee on Terminology of the American Institute of Certified Public Accounting’ defined accounting as follows: Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof.1 The scope of accounting from this definition appears limited. A broader perspective was offered, by the following definition of accounting as: The process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information.2 Accounting has also been defined with reference to the concept of quantitative information: Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature about economic entities that is intended to be useful in making economic decisions, in making resolved choices among alternative courses of action.3
1 ‘Review and resume’, Accounting Terminology Bulletin No.1, American Institute of Certified Public Accountants,
New York, 1953, paragraph 5. 2 American Accounting Association, A Statement of Basic Accounting Theory, American Accounting Association, Evanston, IL, 1966, p. 1. 3 Financial Statements of Business Enterprises’, American Institute of Certified Public Accountants, New York, 1970, paragraph 40.
For use with International Financial Reporting and Analysis, 9e Alexander, Jorissen, Hoogendoorn, van Mourik, Kirwan, Inwinkl and Michelon © 2023, Cengage Learning EMEA, ISBN 9781473786820