Principles of Accounting
저자 | : 이대선,송기신,정경만,이호갑,박성환 |
---|---|
발행일 | : 2019-03-06 |
ISBN-13 | : 9791187897583 |
판형 | : 4×6배판 |
페이지수 | : 632 쪽 |
판매가 | : 34,000 원 |
As we release the 3rd edition a Korean·English translation
It has been 7 years since Accounting Principles based on International Standards was published. Because the several revisions made over this period were not considered in-depth enough, this time we’ve done a major overhaul of the whole book. We consider the following points in this revision.
1. Highlight international standards that are different from the old standards
Up to now, this book was written and revised as an introduction to overall international standards, so it was somewhat short on explaining the specific, detailed requirements of the international standards. This revision highlights in detail the following items, which the international standards require be carried out differently than under the old standards.
|
Old standards |
International standards |
Text |
Estimating bad debts |
Select one amongst the individual method, percentage method, and aging method. |
If information obtained by the individual method is not enough, the aging method should be applied. |
p.276 |
Presenting trade receivables |
Indirect method, showing gross amount of trade receivables less allowance for uncollectible accounts. |
Both direct method, showing net amount of trade receivables, and indirect method are allowed. If direct method is used, allowance for uncollectible accounts balance should be disclosed in a footnote. |
p.274 |
Inventory valuation |
Select one amongst specific identification method, FIFO, LIFO, or weighted average method. |
LIFO is not allowed. Must apply specific identification method first. If inventories are exchangeable, FIFO or weighted average can be applied. |
p.326 |
Checking whether depreciation expense reflects economic reality |
No standard. |
Must check every year whether depreciation expense reflects economic reality and, if it does not reflect, must change depreciation method, useful life, and residual value. |
p.371 |
Presenting accumulated depreciation |
Indirect method showing accumulated depreciation as a deduction. |
Both direct method, showing net amount, and indirect method are allowed. If direct method is used, balance of accumulated depreciation should be disclosed in a footnote. |
p.376 |
Presenting bonds payable |
Indirect method showing discount on bonds payable as a reduction. |
Direct method showing amortized cost. |
p.428 |
Classification of interest received, dividend received, and interest paid in statement of cash flows |
Classified as operating activities applying an exception to the theory. |
Allows both the exceptional old standards and the theory, classifying interest received and dividend received as investing activities and interest paid as a financing activity. (This book applies classification by the theory). |
p.511 |
Classification of financial assets |
Trading, Available-for-sale, Held-to-maturity financial assets |
Amortized cost, Fair value through profit or loss, Fair value through other comprehensive income financial assets |
p.582 |
2. Use of revised terminology
We revise and use the titles of the income statement account (Korean) that can be understood as cash flows rather than expense or revenue as below.
Before revision |
After revision |
Rent (paid) |
Rent expense |
Insurance premium |
Insurance expense |
Salaries |
Salaries expense |
Rent(received) |
Rent revenue |
Service fees |
Service fees revenue |
3. Inclusion of IFRS (International Financial Reporting Standards) footnotes
Each time IFRS is quoted or referenced, a footnote is created, and the related standards are listed in the ‘IFRS References (http://www.kasb.or.kr)’ section included at the end of each Chapter. Therefore, it becomes clear that the definitions of key terms and important accounting methods are determined by IFRS. If a student wishes to conduct in-depth research on a related topic, he or she can easily identify the relevant standards and so conduct the research more effectively by using the information provided. In addition, when the student publishes his or her research outputs, he or she can easily quote or reference the related standards.
4. A Korean-English translation
We have created a Korean·English translation, in response to the internationalization of the accounting environment. When translating, we attempt to consider both the Korean and English version as independent texts. We first translate each sentence from Korean version into English and then re-translate this English version back into Korean, to ensure we arrive at a consistent result. Accounting can be difficult to both understand and effectively communicate. We expect that this Korean-English translation will help minimize these problems.
As we hurry to revise, we know that there will be some errors and typos. We politely ask for your understanding and for kindly notifying us of any errors. We also promise to revise continuously from now on. We express our profound thanks to all staff of Yulgok publishing company for their invaluable work.
February 21, 2019
Authors
1. Business Activities and Financial Statements
Section 1 Business enterprises and business activities 2
Section 2 Business activities and accounting system 9
Section 3 Preparing and disclosing financial statements 17
2. Nature of Financial Statements
Section 1 Statement of financial position 32
Section 2 Comprehensive income statement 47
Section 3 Statement of cash flows 64
Section 4 Statement of changes in equity 69
Section 5 Basic assumption and limitations of financial statements 72
3. Recording Transactions and Preparation of Financial Statements
―Cash Transactions
Section 1 Transactions and bookkeeping 84
Section 2 Recording transactions under the double-entry bookkeeping system
87
Section 3 Accounting cycle (cash) 102
4. Accrual Basis and Preparation of Financial Statements
Section 1 Measurement of income: Accrual basis and cash basis 140
Section 2 Recognition of revenue and expense under the accrual basis
145
Section 3 Adjusting journal entries 151
Section 4 Accounting cycle (accrual) 166
5. Comprehensive Illustration of Preparing and Using Financial
Statements
Section 1 A comprehensive illustration of preparing financial statements
190
Section 2 A comprehensive illustration of using financial statements 224
Case Financial Statements of Daehan Department Store
I. Financial statements 250
II. Footnotes 254
6. Operating Activities―Sales and Trade Receivables
Section 1 Sales and trade receivables 270
Section 2 Trade receivables and bad debts 272
Section 3 Trade receivables and cash flows 285
Section 4 Related financial ratios 290
7. Operating Activities―Cost of Goods Sold, Inventory, and Trade Payables
Section 1 Cost of goods sold, inventory, and trade payables 306
Section 2 Recording cost of goods sold 308
Section 3 Correction of inventory errors 316
Section 4 Inventory valuation methods 326
Section 5 Estimating cost of ending merchandise inventory 333
Section 6 Inventory shortage loss and valuation loss 338
Section 7 Cost of goods sold and cash flows 342
Section 8 Related financial ratios 346
8. Investing Activities―Non-current Assets
Section 1 Acquisition cost of tangible assets 367
Section 2 Depreciation methods 371
Section 3 Depreciation expense and cash flows 379
Section 4 Capital expenditures and revenue expenditures 380
Section 5 Disposal of tangible assets 382
Section 6 Impairment of tangible assets 387
Section 7 Related financial ratios 391
9. Financing Activities―Liabilities
Section 1 Financial liabilities and non-financial liabilities 412
Section 2 Borrowings 414
Section 3 Bonds payable 418
Section 4 Provisions 443
Section 5 Related financial ratios 448
10. Financing Activities-Equity
Section 1 Issuance of stock 470
Section 2 Dividends 473
Section 3 Treasury stock 477
Section 4 Statement of changes in equity 481
Section 5 Related financial ratios 486
11. Statement of Cash Flows
Section 1 Key issues 510
Section 2 Cash flows from operating activities 517
Section 3 Cash flows from investing and financing activities 525
Section 4 Non-cash transactions 528
Section 5 A comprehensive illustration of preparing a statement of cash flows
529
Section 6 Related financial ratios 552
Appendix 1 Special Issues
Section 1 Other comprehensive income and net income 580
Section 2 Accounting for fair value through other comprehensive income financial assets 582
Section 3 Accounting for revaluation of tangible assets 588
Section 4 Equity method and consolidated financial statements 596
Appendix 2 Key Financial Ratios
I. Evaluating profitability 610
II. Evaluating growth 610
Ⅲ. Evaluating activity 611
Ⅳ. Evaluating safety (financial) 611
Ⅴ. Price multiples 612
Translation of terms and index (English-Korean)/613