Financial Accounting for Decision Makers

517
ex-rights share price 138
exchange differences 180
executive committees 449–50, 
517
executive directors 445, 446, 
517
non-executive directors, relations with 456
remuneration 
see
directors: remuneration
UK Corporate Governance Code 447
expectations gap in auditing 459–60, 
517
expenses 75, 
517
accrued 84, 85, 88, 508, 
514
capitalisation 191–2
classification 79–80
inflation and 336
massaging 191–2
overheads 77
prepaid 86–8, 508, 
521
recognition 84–8
segmental reporting 412
external audits 458–9, 467–8, 
517
external relations 450
external reporting 45
external users of accounts 37
EY 
see
Ernst and Young
failed business predictions 330–5
fair representation 161, 175–6
fair values 
517
depreciation calculations 89–90
goodwill arising on consolidation and 381–8
non-current assets 61–3
subsidiaries 368
fairness, directors 445
faithful representation, accounting information 6, 7, 
11, 171, 
517
false conformity, standards imposing 167–8
FASB (Financial Accounting Standards Board)
171
FCA (Financial Conduct Authority) 165
FIFO (first in, first out) 99, 100, 101, 102, 103, 104, 
518
final accounts 37, 
517
group accounts 
see
groups: financial
statements
preparing 505–8
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INDEX 
585
see also
financial statements; income statements; 
statements of cash flows; statements of 
financial position
final dividends 149
finance charges, leased assets 255
finance directors 467, 471
finance leases 
see
leases
financial accounting 13–15, 
518
Financial Accounting Standards Board (FASB) 171
Financial Conduct Authority (FCA) 165
financial failure predictions 330–5
financial gearing 270, 298–302, 
518
financial information 
see
accounting: information; 
information
financial institutions 481–9
financial performance, measuring and reporting 
73–115
financial periods 75
financial position
inflation and 429
measuring and reporting 34–6
accounting conventions 53–7
assets 47–9, 60–5
claims classification 49–50
money measurement 57–60
overview of major financial statements 34–8
time and 52–3
trading transactions 45–7
user needs 65–6
statements of 
see
statement of financial position
financial products 27
financial ratios 269
calculation 273–4
classification 270–1
common-size financial statements 325–9
comparisons 271–2, 337
efficiency 270, 283–91
financial gearing 270, 298–302
investment 270, 314–22
key performance indicators 324, 
519
limitations of analysis 335–7
liquidity 270, 291–5
operating cash cycle 295–7
overtrading and 323–4
predicting financial failure 330–5
combinations of ratios 332–3
single ratios 330–1
Z-score models 333–5
profitability 270, 276–83, 289–91
reliance on 336–7
restricted view of 336–7
trend analysis 329
see also
gearing ratio; liquidity: ratios; 
profitability: ratios
financial reporting 21, 406
decision making and 408
development of financial reporting 407–8
inflation accounting and reporting 
see
inflation
interim financial statements 416–20
segmental reports 409–13,