International
Financial Reporting:
A Practical Guide
Seventh edition
Alan Melville
© Pearson Education Limited 2019
Lecturers adopting the main text are permitted to download and photocopy the manual as required.For further instructor material
please visit:
www.pearsoned.co.uk/melville
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
iInstructor’s Manual
ISBN: 978-1-292-29317-2
Instructors_Manual_2019.indd 1 4/17/19 11:41 AM PEARSON EDUCATION LIMITED
Kao TwoKao ParkHarlow CM17 9SRUnited KingdomTel: +44 (0)1279 623623Web: www.pearson.com/uk
This edition published 2019
© Pearson Education Limited 2019The rights of Alan Melville to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
ISBN: 978-1-292-29317-2
© Pearson Education Limited 2019Melville: International Financial Reporting, Instructor’s Manual, 7th edition
iiAll rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers.
Pearson Education is not responsible for the content of third-party internet sites.
Instructors_Manual_2019.indd 2 4/17/19 11:41 AM Melville: International Financial Reporting, Instructor's Manual, 7th edition iii © Pearson Education Limited 2019 Contents Preface v Acknowledgements vi Chapter 1 The regulatory framework Solutions 1.8 and 1.9 1 Chapter 2 The IASB conceptual framework Solutions 2.7 and 2.8 3 Chapter 3 Presentation of financial statements Solution 3.7 5 Chapter 4 Accounting policies, accounting estimates and errors Solution 4.7 8 Chapter 5 Property, plant and equipment Solutions 5.7 and 5.8 9 Chapter 6 Intangible assets Solutions 6.8 and 6.9 12 Chapter 7 Impairment of assets Solutions 7.7 and 7.8 14 Chapter 8 Non-current assets held for sale and discontinued operations Solution 8.7 15 Chapter 9 Leases Solutions 9.7 and 9.8 16 Chapter 10 Inventories Solutions 10.5 and 10.6 18 Chapter 11 Financial instruments Solution 11.6 20 Chapter 12 Provisions and events after the reporting period Solution 12.8 22 Chapter 13 Revenue from contracts with customers Solutions 13.7 and 13.8 23 Chapter 14 Employee benefits Solution 14.6 and 14.7 24 Chapter 15 Taxation in financial statements Solutions 15.7, 15.8 and 15.9 26 Chapter 16 Statement of cash flows Solutions 16.8 and 16.9 32 Chapter 17 Financial reporting in hyperinflationary economies Solution 17.5 35 Melville: International Financial Reporting, Instructor's Manual, 7th edition iv © Pearson Education Limited 2019 Chapter 18 Groups of companies (1) Solutions 18.6 and 18.7 36 Chapter 19 Groups of companies (2) Solution 19.5 41 Chapter 20 Associates and joint arrangements Solution 20.5 44 Chapter 21 Related parties and changes in foreign exchange rates Solution 21.4 46 Chapter 22 Ratio analysis Solutions 22.5 and 22.6 47 Chapter 23 Earnings per share Solutions 23.6 and 23.7 50 Chapter 24 Segmental analysis Solution 24.6 51
Financial Reporting:
A Practical Guide
Seventh edition
Alan Melville
© Pearson Education Limited 2019
Lecturers adopting the main text are permitted to download and photocopy the manual as required.For further instructor material
please visit:
www.pearsoned.co.uk/melville
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
iInstructor’s Manual
ISBN: 978-1-292-29317-2
Instructors_Manual_2019.indd 1 4/17/19 11:41 AM PEARSON EDUCATION LIMITED
Kao TwoKao ParkHarlow CM17 9SRUnited KingdomTel: +44 (0)1279 623623Web: www.pearson.com/uk
This edition published 2019
© Pearson Education Limited 2019The rights of Alan Melville to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
ISBN: 978-1-292-29317-2
© Pearson Education Limited 2019Melville: International Financial Reporting, Instructor’s Manual, 7th edition
iiAll rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers.
Pearson Education is not responsible for the content of third-party internet sites.
Instructors_Manual_2019.indd 2 4/17/19 11:41 AM Melville: International Financial Reporting, Instructor's Manual, 7th edition iii © Pearson Education Limited 2019 Contents Preface v Acknowledgements vi Chapter 1 The regulatory framework Solutions 1.8 and 1.9 1 Chapter 2 The IASB conceptual framework Solutions 2.7 and 2.8 3 Chapter 3 Presentation of financial statements Solution 3.7 5 Chapter 4 Accounting policies, accounting estimates and errors Solution 4.7 8 Chapter 5 Property, plant and equipment Solutions 5.7 and 5.8 9 Chapter 6 Intangible assets Solutions 6.8 and 6.9 12 Chapter 7 Impairment of assets Solutions 7.7 and 7.8 14 Chapter 8 Non-current assets held for sale and discontinued operations Solution 8.7 15 Chapter 9 Leases Solutions 9.7 and 9.8 16 Chapter 10 Inventories Solutions 10.5 and 10.6 18 Chapter 11 Financial instruments Solution 11.6 20 Chapter 12 Provisions and events after the reporting period Solution 12.8 22 Chapter 13 Revenue from contracts with customers Solutions 13.7 and 13.8 23 Chapter 14 Employee benefits Solution 14.6 and 14.7 24 Chapter 15 Taxation in financial statements Solutions 15.7, 15.8 and 15.9 26 Chapter 16 Statement of cash flows Solutions 16.8 and 16.9 32 Chapter 17 Financial reporting in hyperinflationary economies Solution 17.5 35 Melville: International Financial Reporting, Instructor's Manual, 7th edition iv © Pearson Education Limited 2019 Chapter 18 Groups of companies (1) Solutions 18.6 and 18.7 36 Chapter 19 Groups of companies (2) Solution 19.5 41 Chapter 20 Associates and joint arrangements Solution 20.5 44 Chapter 21 Related parties and changes in foreign exchange rates Solution 21.4 46 Chapter 22 Ratio analysis Solutions 22.5 and 22.6 47 Chapter 23 Earnings per share Solutions 23.6 and 23.7 50 Chapter 24 Segmental analysis Solution 24.6 51
