The authors’ aim is that this book will serve students, faculty, and practitioners as a reliable reference tool for understanding accounting and financial statements. The book commences by focusing on the accounting procedures for most common business transactions and it concludes by considering related recognition and measurement issues in companies’ financial statements. Theoretical explanations, case studies and examples presented and illustrated are developed from an international accounting perspective (IAS/IFRSs).

Introduction

Chapter 1 The accounting system
1. What to account for?
2. How to account for? The double entry method
3. Where to account for?
3.1. Ledger book
3.2. Journal book
4. Chart of accounts
5. When to account for?

Chapter 2 Accounting for ordinary business transactions
1. Purchases and sales of goods and services
1.1. VAT and Sales tax
1.2. Purchases and Sales with VAT
1.3. Purchases and sales not liable to VAT
2. Advance payments
3. Discounts
4. Returns
5. Import and export
5.1. Importing goods from the EU
5.2. Importing goods from outside the EU
5.2.1. Export
6. VAT settlement
7. Payroll
8. Non.Current assets
8.1. Tangible assets
8.2. Intangible assets
9. Financing
9.1. Loans
9.2. Bonds
9.3. Factoring
9.4. Leases
10. Shareholder’s Equity
10.1. Incorporation of the company
10.2. Issuance of new shares

Chapter 3 Adjusting and closing entries
1. Trial balance
2. Adjustments
2.1. Accrued revenues and expenses
2.2. Payroll accruals
2.3. Unearned revenue and prepaid expenses
2.4. Inventory
2.5. Depreciation
2.6. Amortization
2.7. Impairment
2.8. Bad Debts
2.9. Commitments, contingencies and risk
3. Closing entries
4. Advanced operations
4.1. Recognition of net profit (or loss);
4.2. Sale of fixed assets

Chapter 4 Financial Statements
Introduction to Financial Statements
2. Rules for Financial Statements
3. The financial statements under IAS/IFRS
3.1. The documents of financial statements
3.1.1. The statement of financial position (balance sheet)
3.1.2. The income statement
3.1.3. The statement of changes in equity
3.1.4. Statement of cash flows
3.1.5. The notes to the financial statements

Chapter 5 Measurement rules of Financial Statements
1. Intangible assets
1.1. Measurement after recognition
1.2. Amortisation
1.3. Disclosure
2. Property plant and equipment
2.1. Measurement after recognition
2.2. Depreciation
2.3. Disclosures
3. Impairment of assets
4. Investment property
4.1. Measurement after recognition
4.2. Disclosure
5. Inventories and construction contract
5.1. Disclosure
6. Financial instruments
7. Provisions and contingencies
7.1. Disclosure
8. The consolidated financial statements

Chapter 6 Cases
1. SOLVED cases
1.1. Case IRI
1.2. Case IRI - Solution
1.3. Case ITS
1.4. Case ITS - Solution
2. UNSOLVED cases
2.1. Case Info
2.2. Case One
2.3. Case Alpha
2.4. Case Tera
2.5. Case KEY
2.6. Case Trials
2.7. Case Kar

Appendix A Companies’ Cases of Financial Statements
Autogrill S.p.a. – Consolidated Financial statement - 31st December 2013
Autogrill S.p.a. – Bilancio consolidato al 31 dicembre 2013
The Coca Cola Company Group – Consolidated Financial statements - 31st December 2013
The Pepsi Cola Group – Consolidated Financial statements – 31st December 2013

Appendix B Basic English–Italian accounting glossary

References

Paolo Pietro Biancone è professore associato di Economia Aziendale presso l’Università di Torino, Dipartimento di Management. Presiede il corso di laurea in Professioni Contabili ed è responsabile dell’Osservatorio sulla Finanza Islamica.
Docente di Organizzazione e Amministrazione dell’Azienda Farmaceutica presso il corso di laurea in Farmacia dell’Università di Torino, è componente del Comitato Scientifico del Master in Farmacia Territoriale “Chiara Colombo”, organizzato dall’Università di Torino con la collaborazione dell’Ordine dei Farmacisti di Torino. Da alcuni anni è anche docente di Financial Management all’Università di Lanzhou (Cina) e alla National Chengchi University di Taipei (Taiwan). Relatore a convegni nazionali e internazionali, è autore di numerose pubblicazioni in materia di bilancio e princìpi contabili internazionali.

Paolo Pietro Biancone, ITP at London Business School, is associate professor of Management at the University of Turin, and Dean of the International Accounting Master Programme. His main field of research, teaching and writing concerns Islamic Finance and Financial Management. Moreover, he practices these disciplines by supporting companies as a public certified accountant and as an independent auditor.

Simone Domenico Scagnelli, Ph.D., is aggregate professor of Management at the University of Turin (Italy), and visiting professor at Macquaire University, Sidney (Australia). His main field of research, teaching and writing concerns Corporate Social Responsibility and Behavioral Finance. In addition, he practices these disciplines by supporting companies as a public certified accountant and as an independent auditor.