Project Description
Financial Reporting, 4th Edition
Loftus, Leo, Daniliuc, Luke, Ang, Bradbury, Hanlon, Boys, Byrnes
Interactive E-Text: 9780730396451, Print & Interactive E-Text Code: 9780730396413
Loftus’ Financial Reporting, 4th Edition is the most authoritative and comprehensive coverage for both the second- and third-year financial reporting and company accounting courses, blending theory, standards, and practical application. This textbook addresses key developments in the field, including a dedicated chapter on ethics, an enhanced sustainability chapter, and expanded coverage of New Zealand standards and examples.
Available on our affordable subscription platform, Wiley Business Now, it includes an Instructor Resource Toolkit and support from our local Wiley team.
Table of Contents
1.1 Key sources of regulation of financial reporting in Australia
1.2 The roles of key players in financial reporting regulation
1.3 Key sources of regulation of financial reporting in New Zealand
1.4 The international accounting standards board (IASB)
1.5 The components of Conceptual Framework
1.6 Qualitative characteristics of useful information
1.7 Financial statements and the reporting entity
1.8 Definition of elements of financial statement
1.9 Recognition and derecognition of the elements of financial statements
1.10 Measurement of the elements of financial statements
1.11 Presentation and disclosure
1.12 Concepts of capital
1.13 Inconsistencies between the Conceptual Framework and accounting standards
Concept check
Summary
Key terms
Comprehension questions
Case study 1.1
Case study 1.2
Case study 1.3
Case study 1.4
Application and analysis exercises
References
Acknowledgements
2.2 What is an accounting policy?
2.3 What is accounting theory?
2.4 Positive accounting theory
2.5 The role of accounting in capital markets
Concept check
Summary
Key terms
Comprehension questions
Case study 2.1
Case study 2.2
Case study 2.3
Application and analysis exercises
References
Acknowledgements
3.2 APES 110 code of ethics for professional accountants (including Independence Standards)
3.3 Ethical perspectives
3.4 Making ethical decisions
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 3.1
Case study 3.2
Case study 3.3
Case study 3.4
Case study 3.5
application and analysis exercises
References
Acknowledgements
4.2 The definition of fair value
4.3 The fair value measurement approach
4.4 Application to non financial assets
4.5 Application to liabilities
4.6 Application to an entity’s own equity’s own equity instruments
4.7 Issues relating to application to financial instruments
4.8 Disclosure requirements
Concept check
Summary
Key terms
Comprehensive questions
Case study 4.1
Case study 4.2
Case study 4.3
Case study 4.4
Case study 4.5
Case study 4.6
Application and analysis exercises
Reference
Acknowledge
5.2 Recognition and measurement of inventories
5.3 Measurement at cost
5.4 Method of record keeping for inventory control
5.5 End-of-period accounting
5.6 Assigning costs to inventories on sales
5.7 Net realisable value
5.8 Recognition as an expense
5.9 Disclosure
Concept check
Summary
Key terms
Demonstration problems
Comprehension questions
Case study 5.1
Case study 5.2
Case study 5.3
Case study 5.4
Application and analysis exercises
References
Acknowledgements
6.2 Initial recognition of PPE
6.3 Initial measurement of PPE
6.4 Measurement subsequent to initial recognition
6.5 The cost model
6.6 The revaluation model
6.7 Derecognition
6.8 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 6.1
Case study 6.2
Case study 6.3
Case study 6.4
Case study 6.5
Application and analysis exercises
Reference
Acknowledgments
7.2 The nature of intangible assets
7.3 Recognition of intangible asses
7.4 Measurement
7.5 Amortisation of intangible assets
7.6 Measurement subsequent to initial recognition
7.7 Disclosure
Concept check
Summary
Demonstration problem
Comprehension questions
Case study 7.1
Case study 7.2
Case study 7.3
Application and analysis exercises
References
Acknowledgements
8.1 Introduction and scope
8.2 When to undertake an impairment test
8.3 The impairment test
8.4 Impairment loss: individual assets
8.5 Impairment loss: cash-generating units
8.6 Reversal of an impairment loss
8.7 Disclosure
Concept check
Summary
Key terms
Demonstration problems
Comprehension questions
Case study 8.1
Case study 8.2
Case study 8.3
Application and analysis exercises
References
9.2 Definition of provision
9.3 Definition of a contingent liability
9.4 The recognition criteria for provisions
9.5 Measurement of provisions
9.6 Application of the definitions, recognitions and measurement rules
9.7 Contingent assets
9.8 Disclosure
9.9 Comparison between AASB 3/IFRS 3 and AASB 137/IAS 37 in respect of contingent liabilities
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 9.1
Case study 9.2
Case study 9.3
Application and analysis exercises
Reference
Acknowledgements
10.2 Short-term employee benefits
10.3 Post-employee benefits
10.4 Accounting for defined contribution post-employment plans
10.5 Accounting for defined benefit post-employment plans
10.6 Other long-term employment benefits
Concept check
Summary
Key terms
Demonstration problem
Comprehensive questions
Case study 10.1
Case study 10.2
Case study 10.3
Case study 10.4
Case study 10.5
Application and analysis exercises
Reference
Acknowledgements
11.2 Accounting for leases by lessees
11.3 Classifying leases by lessor
11.4 Accounting for finance leases by financer lessors
11.5 Accounting for finances leases y manufacturer or dealer lessor
11.6 Accounting for operating leases by lessor
11.7 Disclosure requirements
Concept check
Summary
Key terms
Demonstration problems
Comprehension questions
Case study 11.1
Case study 11.2
Application and analysis exercises
Reference
Acknowledgements
12.2 Financial asses
12.3 Financial liabilities
12.4 Derivative instruments
12.5 What’s an equity instrument?
12.6 Distinguishing between financial liabilities and equity instruments
12.7 Compound financial instruments- convertible notes
12.8 Consequential effects of classifications for interest, dividends, gains and losses
12.9 Recognition of financial asset or financial liability
12.10 Offsetting a financial asset and a financial liability
12.11 Derecognition of a financial asset or a financial liability
12.12 Initial measurement of a financial asset or a financial liability
12.13 Subsequent measurement of a financial asset or a financial liability
12.14 Impairment of financial assets
12.15 Subsequent measurement of a financial liability
12.16 Disclosures
Concept check
Summary
Key terms
Demonstration problems
Comprehension questions
Case study 12.1
Case study 12.2
Application and analysis exercises
References
Acknowledgements
13.2 Differences between accounting profit and taxable profit
13.3 Current and future tax consequences of transactions and other events
13.4 Calculation and recognition of current tax
13.5 Calculation and recognition of deferred tax
13.6 Changes in tax rates
13.7 Disclosure requirements
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 13.1
Case study 13.2
Case study 13.3
Case study 13.4
Case study 13.5
Case study 13.6
Application and analysis exercises
Reference
Acknowledgements
14.2 Types of companies
14.3 Key features of the corporate structure
14.4 Different types of share capital
14.5 Contributed capital: issue of a share capital
14.6 Contributed capital: subsequent movements in share capital
14.7 Contributed capital: share buybacks
14.8 Retained earnings
14.9 Reserves
14.10 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 14.1
Case study 14.2
Case study 14.3
Application and analysis exercises
Reference
Acknowledgement
15.1 Shared-based payment transactions
15.2 Cash-settled and equity-settled share-based payment transactions
15.3 Recognition
15.4 Equity-settled share-based payment transactions
15.5 Vesting
15.6 Treatment of a reload feature
15.7 Modifications to terms and conditions on which equity instruments were granted
15.8 Cash-settled share based payment transactions
15.9 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 15.1
Case study 15.2
Case study 15.3
Case study 15.4
Application and analysis exercises
Reference
Acknowledgement
16.2 The definitions of income and revenue
16.3 The steps in recognising revenue
16.4 The recognition criteria
16.5 Revenue recognition issues in various industries in practice
16.6 Disclosure requirements of AASB 15/ IFRS 15
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 16.1
Case study 16.2
Case study 16.3
Application and analysis exercises
Reference
Acknowledgement
17.2 General features of a financial statement
17.3 Statement of financial position
17.4 Statement of a profit or loss and other comprehensive income
17.5 Statement of changes in equity
17.6 Notes
17.7 Digital financial reporting
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 17.1
Case study 17.2
Case study 17.3
Case study 17.4
Application and analysis exercises
Reference
Acknowledgement
18.2 Defining cash ad cash equivalents
18.3 Classifying cash flow activities
18.4 Format of the statement of cash flows
18.5 Preparing a statement of cash flows
18.6 Consolidated statements of cash flow
18.7 Other disclosures
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 18.1
Case study 18.2
Case study 18.3
Case study 18.4
Application and analysis exercises
Reference
Acknowledgement
19.2 Changes in accounting estimates
19.3 Errors
19.4 Impracticability in respect of retrospect adjustments for accounting policy changes or correction of errors
19.5 Materiality
19.6 Events occurring after the end of the reporting period
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 19.1
Case study 19.2
Case study 19.3
Case study 19.4
Case study 19.5
Application and analysis exercises
Reference
Acknowledgement
20.2 Application and scope
20.3 Basic earnings per share
20.4 Diluted earnings per share
20.5 Disclosure
20.6 Advantages and disadvantages of an EPS accounting standard
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 20.1
Case study 20.2
Case study 20.3
Application and analysis exercises
Reference
Acknowledgement
21.2 Scope
21.3 A controversial standard
21.4 Operating segment
21.5 Reportable segments
21.6 Disclosure
21.7 Applying the disclosures in practice
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 21.1
Case study 21.2
Application and analysis exercises
Reference
Acknowledgement
22.1 Objective, application and scope of AASB 124/IAS 24
22.2 Identifying related parties
22.3 Relationships that are not related parties
22.4 Disclosure
22.5 Government-related entities
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 22.1
Case study 22.2
Case study 22.3
Application and analysis exercises
Reference
Acknowledgement
23.2 Stakeholder influences
23.3 International sustainability reporting frameworks
23.4 ESG reporting
23.5 Climate change and accounting
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 23.1
Case study 23.2
Case study 23.3
Case study 23.4
Case study 23.5
Application and analysis exercises
Reference
Acknowledgement
24.2 Exchange rates
24.3 Initial measurement at the transaction date
24.4 Monetary and non-monetary items
24.5 Foreign exchange differences for monetary items
24.6 Subsequent measurement of foreign currency monetary items
24.7 Subsequent measurement of foreign currency non-monetary items
24.8 Foreign exchange risk
24.9 Forward exchange contracts
24.10 Forward exchange contracts with hedging
24.11 Disclosures
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 24.1
Case study 24.2
Application and analysis exercises
Reference
Acknowledgement
25.2 Functional and presentation currencies
25.3 The translation problem
25.4 Translation into the functional currency – the temporal method
25.5 Translation from the functional currency into the presentation currency – the current rate method
25.6 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 25.1
Case study 25.2
Case study 25.3
Case study 25.4
Case study 25.5
Application and analysis exercises
Reference
Acknowledgement
26.2 Determining whether a transaction is a business combination
26.3 The acquisition method
26.4 Step 1: Identify the acquirer
26.5 Step 2: Determine the acquisition date
26.6 Step 3: Recognise and measure identifiable assets acquired and liabilities assumed
26.7 Step 4: Recognise and measure goodwill and gain on bargain purchase
26.8 Disclosures
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 26.1
Case study 26.2
Case study 26.3
Case study 26.4
Case study 26.5
Application and analysis exercises
Reference
Acknowledgement
27.1 Control
27.3 Consolidation process
27.4 Circumstances where a parent may not prepare consolidated financial statements
27.5 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 27.1
Case study 27.2
Case study 27.3
Application and analysis exercises
Reference
Acknowledgement
28.2 Consolidation worksheets
28.3 The acquisition analysis
28.4 Consolidation worksheets entries at the acquisition date
28.5 Consolidation worksheet entries subsequent to the acquisition date
28.6 Consolidation worksheet entries when the subsidiary revalues its assets at the acquisition date
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 28.1
Case study 28.2
Case study 28.3
Case study 28.4
Case study 28.5
Application and analysis exercises
Reference
Acknowledgement
29.1 The need for intragroup adjustments
29.2 The adjustment process
29.3 Inventories
29.4 Property, plant and equipment
29.5 Intragroup services
29.6 Dividends
29.7 Intragroup borrowings
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 29.1
Case study 29.2
Application and analysis exercises
Reference
Acknowledgement
30.1 The nature of non-controlling interest
30.2 Measurement and disclosure of the NCI share of equity
30.3 The consolidation worksheet in the presence of NCI
30.4 The effects of the NCI on the goodwill recognised in the consolidation process
30.5 Calculating the NCI share of recorded equity
30.6 Adjusting NCI for the effects of intragroup transitions
30.7 Gain on bargain purchase
30.8 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 30.1
Case study 30.2
Case study 30.3
Case study 30.4
Application and analysis exercises
Reference
Acknowledgement
31.2 Direct and indirect non-controlling interest in a multiple subsidiary group structure
31.3 Preparing consolidated financial statements for a multiple subsidiary group structure
31.4 Non-sequential acquisitions
31.5 Changes in ownership interests by a parent in a single subsidiary group structure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 31.1
Case study 31.2
Case study 31.3
Application and analysis exercises
Reference
Acknowledgement
32.2 Identifying associates and join ventures
32.3 The equity method of accounting: rationale and application
32.4 Applying the equity method: basic principles
32.5 Applying the equity method: goodwill and fair value adjustments
32.6 Applying the equity method: inter-entity transactions
32.7 Share of losses of an associate or joint venture
32.8 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 32.1
Case study 32.2
Case study 32.3
Case study 32.4
Application and analysis exercises
Reference
Acknowledgement
33.2 Joint arrangements: characteristics and classifications
33.3 Accounting for joint arrangements
33.4 Accounting by a joint operator
33.5 Disclosure
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 33.1
Case study 33.2
Case study 33.3
Case study 33.4
Case study 33.5
Application and analysis exercises
Reference
Acknowledgement
34.2 Receivership
34.3 Voluntary administration
34.4 Liquidation
34.5 Powers of a liquidator
34.6 Identifying the company’s debts on liquidation
34.7 Ranking the company’s debs on liquidation
34.8 Rights of contributories on liquidation
34.9 Accounting for liquidation
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 34.1
Case study 34.2
Application and analysis exercises
Reference
Acknowledgement
35.2 Objective of AASB 6/IFRS 6
35.3 Scope of AASB 6/IFRS 6
35.4 Recognition of exploration and evaluation assets
35.5 Measurement of exploration and evaluation sets
35.6 Impairment
35.7 Classification and reclassification of exploration and evaluation assets
35.8 Disclosure
35.9 Developments and contemporary issues
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 35.1
Case study 35.2
Case study 35.3
Application and analysis exercises
Reference
Acknowledgement
36.2 Scope and key definitions
36.3 The harvest distinction
36.4 The recognition criteria for biological assets and agricultural produce
36.5 Measurement at fair value less costs to sell
36.6 Practical implementation issues with the use of fair value
36.7 Government grants
36.8 The interaction between AASB 141/IAS 41 and AASB 116/IAS 16 and AASB 140/IAS 40
Concept check
Summary
Key terms
Demonstration problem
Comprehension questions
Case study 36.1
Case study 36.2
Case study 36.3
Application and analysis exercises
Reference
Acknowledgement
Authors
Janice Loftus (University of Adelaide)
Ken Leo (formerly Curtin University)
Sorin Daniliuc (Australian National University)
Belinda Luke (Queensland University of Technology)
Hong Nee Ang (Deakin University)
Michael Bradbury (Massey University)
Dean Hanlon (Monash University)
Jeffrey Knapp (formerly Macquarie, University of NSW)
Noel Boys (University of Melbourne)
Karyn Byrnes (CPA Australia, formerly University of Southern Queensland)
Explore our content
Loftus’ Financial Reporting, 4th Edition, fosters a strong understanding of financial and corporate accounting principles.
Using real-world examples and case studies from local ANZ organisations like Wesfarmers Limited, each chapter includes exercises to reinforce key concepts and encourage critical thinking. This edition features a chapter on ethics by leading ethics expert James Hazelton (RMIT University), emphasising ethical practices and the APESB Code of Ethics for Professional Accountants. It also addresses the intersection of technology and accounting, highlighting innovations like XBRL.
By combining theory with hands-on practice, this book prepares students for academic success and future careers in accounting.
What’s in Loftus’s Financial Reporting 4th Edition?
- Comprehensive Coverage: The most up-to-date financial reporting requirements in New Zealand and Australia.
- Expanded Ethics Chapter: Written by leading ethics expert James Hazelton, it introduces students to the role of ethics in accounting, with particular emphasis on the APESB Code of Ethics for Professional Accountants.
- Ethics in Action: Feature boxes discussing ethical issues in financial reporting, relevant to the chapter content.
- Technology Insight: Highlighting the role of technology in accounting and how this is changing the profession, such as the use of XLBR for financial reporting.
- Standards Coverage: Conceptual and practical application of IFRS/IAS, AASB, and NZASB standards, updated until May 2022.
- Real Financial Reporting Data: Financial reporting examples from local Australian and New Zealand organisations like Australian Wesfarmers Limited is used to illustrate the application of key concepts in multiple chapters.
- Sustainability Reporting: Chapter 23 has been completely rewritten, covering up-to-date content on international reporting frameworks for sustainability issues, environment, social and governance reporting, and the implications of climate change on accounting.
- Dual Course Use: Suitable for financial and corporate accounting courses.
- NZ Standards Integration: Localised examples and insights by Mike Massey (Board Member: External Reporting Board, NZ Accounting Standards Board, Property Institute NZ Standards Board). New Zealand students will understand their local standard-setting process and applicable accounting standards.
Take a closer look:
Interactives and Key Features
Available as a interactive e-text or printed textbook, with both subscription or buy-to-own access models. This title empowers students to master concepts and excel in assessments. Lecturers are supported with an extensive, easy-to-use teaching and learning package.
The book uses real financial data from Australian and New Zealand organisations, including Wesfarmers Limited, to demonstrate key accounting concepts, helping students understand their application in professional settings.
Featured: Wesfarmers data
The Technology Insights boxed features are integrated throughout, showcasing the role of technology in accounting and its impact on the profession, while helping students build a practical understanding.
Featured: Technology insight
Our ethics chapter covers the critical role of ethics in accounting. This edition has been enhanced to equip students with a strong foundation to navigate ethical challenges in the profession.
Enhanced ethics chapter
Students engage deeply with key topics through Application and Analysis Excercises. Allowing them to apply concepts to real-world scenarios to ensure a thorough understanding of essential learning outcomes.
Application and analysis exercises
Our digital eText includes multiple-choice questions which provide immediate feedback, reinforcing learning and identifying areas that may need further review.
Concept check (eText)
Each chapter includes example problems based on real-world financial-reporting scenarios. These guide students step-by-step through solving issues linked to the chapter's content, demonstrating key concepts and building practical skills.
Illustrative examples
Students can personalise their eText by highlighting and taking notes, as well as other useful features including read aloud.
Personalisation features
Access Options
Wiley is committed to creating innovative delivery options that cater to students, libraries and institutions, our texts are available with multiple purchase models to ensure flexibility and meet the needs of our diverse customers.
Student Purchase Options
At Wiley Direct, students can explore subscription or buy-to-own options (inc. Print & eText) – with 10% off and free shipping, click here
Library Provisioned
This text can be provisioned by your university library with unlimited student access, as well as other options, click here
Institution Provisioned
When your department wants to provision the text for students – we can help. To discover more click here
Practice Resources
Available exclusively in Wiley Business Now, inclusive of the semester or monthly subscription price.
Student Solution Manual
Answers to every odd-numbered question posed in the text. Students can check their understanding, boost self-study and excel at exam preparation.
Instructor Resource Toolkit
Our Instructor Resource Toolkit is designed to seamlessly integrate the text content into your teaching, saving you time and boosting student engagement. It includes a variety of customisable tools, guides and assessment.*
Pre-made PowerPoint slides save you time in your course set-up, while the ability to customise the content means you can build it to suit your courses learning outcomes.
Local Wiley Support
This text is proudly published and supported by a local team dedicated to enriching learning experiences for ANZ based students and instructors.
Meet with your Wiley Representative!
- Take a customised tour of the text features tailored to your course learning objectives
- Explore the Instructor Resources available to you
- Learn about the access models available to students, or ways your university can provision the text
- Request a review copy or sample materials
- Discuss the needs of your course and how we can assist you
*The Instructor Resource Toolkit is only available to educators in Australian, New Zealand & Pacific Universities. Our team will verify all requests for access. Once your request is verified, you will be able to login and download the resources from the Instructor Companion site. *All prices on this page are AUD