Financial Accounting and Reporting, 21st edition
Published by Pearson (July 2, 2025) © 2025
  • Jamie Elliott
  • Barry Elliott
  • Jo Watkins

Title overview

Financial Accounting and Reporting, 21st edition provides a complete overview of this demanding subject, equipping students with the knowledge to understand, prepare and critically discuss IFRS-compliant financial statements with reference to the wider context and practice of financial reporting.

Also available with MyLab Accounting.

Hallmark features of this title

Provides real-life understanding of key issues

  • Real-world examples of international companies' reports and accounts help students apply key principles and use a variety of techniques.

Features to support in-depth learning and use for quick reference

  • End-of-chapter summaries, exercises from past exam papers, and review questions all help students study and build their confidence in the subject.

A clear and comprehensive guide to financial reporting

  • Sections on the use and analysis of financial statements provide essential information for financial accounting students.
  • Broad coverage - from the basics up to consolidated statements and complex issues.
  • The lay-out of financial statements is reinforced so students can familiarise themselves with where to find key information.

"I recommend this book for its practical insights and academically solid foundation, effectively bridging theory and real-world applications — ideal for professionals and researchers seeking actionable knowledge and scholarly rigor. - Dr. Ahmed Aboud, Associate Professor, University of Portsmouth

"An excellent financial accounting resource with seamlessly integrated MyLab Accounting materials, enhancing learning and application for students." - Zezeng Li, Assistant Professor in Accounting, Queen Mary University of London

New and updated features of this title

  • UPDATED: Includes the latest accounting standards, as set out in the IFRS, IAS and the Conceptual Framework for Financial Reporting, as well as a discussion of the recently issued IFRS 18: Presentation and Disclosure in Financial Statements.
  • REVISED: Features new material on the preparation of financial statements, revenue recognition, sustainability, corporate governance and accountability.
  • REVISED: The explanation of group accounts and consolidation has been expanded.
  • UPDATED: New illustrations are introduced, relevant to key areas of discussion and application, and incorporate a range of companies' reports and accounts
  • NEW: Improved flow of topics, surfacing the governance and overall context for financial accounting and reporting earlier, and more logically progressing through elements of the financial statements.

With thanks to the contributors to this edition, who were Jo Watkins, University of Birmingham, Emily Jobling, Coventry University, and Ian Crawford, University of Bath.

Key features

A companion to modules in financial accounting and reporting from two highly regarded authors, this 21st edition equips students with the knowledge to understand, prepare and critically discuss IFRS-compliant financial statements with reference to the wider context and practice of financial reporting. Expanded with updates for current practices and updated end-of-chapter questions, this eTextbook balances theoretical principles with worked examples and up-to-date practical applications of financial reporting standards.

Extend learning beyond the classroom with Pearson eTextbook – an easy-to-use digital textbook.

Meet students where they are

  • Study on or offline. With the Pearson+ app, you and your students can access your eTextbook anytime, anywhere.
  • Listen anywhere. Learners can listen to the audio version of their eTextbook, making learning even more flexible.
  • NEW translation feature - users can select a word, phrase, or passage and translate it to a language of their choosing (over 100 languages).

    Optimise study time

    • Find it fast. Enhanced search makes it easy to find a key term or topic to study. Students can also search the additional content such as flashcards and any notes they've created.
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Features of MyLab® Accounting for the 21st Edition

There are over 1600 exercises and questions of various forms in MyLab® that can be selected and assigned for quizzes, formative or summative work, helping you test your students’ performance in a variety of different ways.

  • Teach your course your way: Integrate MyLab seamlessly into your virtual learning environment and create a course that fits your needs. MyLab gives you a great level of flexibility to build your own quizzes and assignments, direct self-study, track student performance, and more.
  • EXPANDED: Feedback that helps students understand where they have gone wrong has been improved, for questions relating to several topics in the book, enabling students to gain even more value from time spent using MyLab.
  • EXPANDED: More questions are now algorithmic questions helping to prevent cheating, where each student works on a numerical problem individual to them.
  • NEW! Short explanatory videos covering key concepts in financial accounting can be viewed by students to help consolidate concepts learned in class.
  • Case Studies in MyLab Accounting help students link theory with its application in real-world decision-making.
  • Excel Projects: In response to feedback from lecturers and teaching staff, the 6 financial problems that use Excel now include instructional video links to support your students' learning of performing functions in Excel. The auto-graded system in the Gradebook allows your students to assess their work in Excel and identify the areas they need to improve.

Enhance student learning with MyLab® Accounting.

Table of contents

PART 1 Introduction to accounting on a cash flow and accrual accounting basis

  1. 1 Accounting and reporting on a cash flow basis
  2. 2 Accounting and reporting on an accrual accounting basis

PART 2 Accountability

  1. 3 Corporate governance
  2. 4 Ethical behaviour and implications for accountants
  3. 5 Integrated reporting: sustainability, environmental and social

PART 3 Preparation of internal and published financial statements

  1. 6 Preparation of financial statements of profit or loss and other comprehensive income, changes in equity and financial position
  2. 7 Annual report: additional financial disclosures
  3. 8 Statements of cash flows
  4. 9 Accounting for price-level changes

PART 4 Regulatory framework – an attempt to achieve uniformity

  1. 10 Financial reporting – evolution of global standards
  2. 11 Concepts – evolution of an international conceptual framework

PART 5 Accounting for the elements of the financial statements

  1. 12 Share capital, distributable profits and reduction of capital
  2. 13 Property, plant and equipment (PPE)
  3. 14 Intangible assets
  4. 15 Inventories
  5. 16 Liabilities
  6. 17 Leasing
  7. 18 Revenue recognition
  8. 19 Taxation in company accounts
  9. 20 Employee benefits
  10. 21 Financial instruments

PART 6 Consolidated accounts

  1. 22 Accounting for groups at the date of acquisition
  2. 23 Preparation of consolidated statements of financial position after the date of acquisition
  3. 24 Preparation of consolidated statements of profit or loss, changes in equity and cash flows
  4. 25 Accounting for associates and joint arrangements
  5. 26 Introduction to accounting for exchange differences

PART 7 Interpretation

  1. 27 Earnings per share
  2. 28 Review of financial ratio analysis
  3. 29 Analysis of published financial statements

Author bios

Jamie Elliott is a director who has worked for Deloitte, Huawei, Panasonic, and more. Prior to his corporate career, he lectured in undergraduate degree programmes and was Assistant Professor in MBA and Executive Education programmes at London Business School.

Barry Elliott has extensive teaching experience in undergraduate, postgraduate, and professional programmes in England, New Zealand, China and Singapore. He has worked for Coopers & Lybrand as a Training Manager in London and National Training Manager in Australia. He has extensive experience as an external examiner in higher education and at all levels of professional education.

Jo Watkins teaches MBA level and undergraduate Accounting and Finance students at the University of Birmingham in the UK and delivers modules overseas in Singapore and Dubai with the university's partners.

Contributors to this edition also included Emily Jobling, Coventry University, and Ian Crawford, University of Bath.

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