Instructor’s Manual
International
Financial Reporting:
A Practical Guide
Eighth edition
Alan Melville
For further instructor material
please visit:
go.pearson.com/uk/he/resources
ISBN: 978-1-292-4
4 3945-7
Pearson Education Limited 2022
Lecturers adopting the main text are permitted to download and photocopy the manual as required.
,PEARSON EDUCATION LIMITED
Kao Two
Kao Park
Harlow
CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
This edition published 2022
© Pearson Education Limited 2022
The 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.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292- 43945
5 -7
All 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.
This publication contains copyright material of the IFRS® Foundation in respect of which all
rights are reserved. Reproduced by Pearson Education, Ltd with the permission of the IFRS
Foundation. No permission granted to third parties to reproduce or distribute. For full access to
IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org.
The International Accounting Standards Board®, the IFRS Foundation, the authors and the
publishers do not accept responsibility for any loss caused by acting or refraining from acting
in reliance on the material in this publication, whether such loss is caused by negligence or
otherwise.
, Melville: International Financial Reporting, Instructor's Manual, 8th edition
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, estimates and errors
Solution 4.7, 4.8 and 4.9 8
Chapter 5 Property, plant and equipment
Solutions 5.7 and 5.8 10
Chapter 6 Intangible assets
Solutions 6.8 and 6.9 13
Chapter 7 Impairment of assets
Solutions 7.7 and 7.8 15
Chapter 8 Non-current assets held for sale and discontinued operations
Solution 8.7 16
Chapter 9 Leases
Solutions 9.7 and 9.8 17
Chapter 10 Inventories
Solutions 10.5 and 10.6 19
Chapter 11 Financial instruments
Solution 11.6 21
Chapter 12 Provisions and events after the reporting period
Solution 12.8 23
Chapter 13 Revenue from contracts with customers
Solutions 13.7 and 13.8 24
Chapter 14 Employee benefits
Solutions 14.6 and 14.7 26
Chapter 15 Taxation in financial statements
Solutions 15.7, 15.8 and 15.9 28
Chapter 16 Statement of cash flows
Solutions 16.8, 16.9 and 16.10 34
Chapter 17 Financial reporting in hyperinflationary economies
Solution 17.5 39
iii
© 2022 Pearson Education Limited. All Rights Reserved.
, Melville: International Financial Reporting, Instructor's Manual, 8th edition
Chapter 18 Groups of companies (1)
Solutions 18.6 and 18.7 40
Chapter 19 Groups of companies (2)
Solutions 19.5 and 19.6 45
Chapter 20 Associates and joint arrangements
Solution 20.5 51
Chapter 21 Related parties and changes in foreign exchange rates
Solution 21.4 53
Chapter 22 Ratio analysis
Solutions 22.5, 22.6 and 22.7 54
Chapter 23 Earnings per share
Solutions 23.6, 23.7, 23.8 and 23.9 59
Chapter 24 Segmental analysis
Solution 24.6 61
iv
© 2022 Pearson Education Limited. All Rights Reserved.
International
Financial Reporting:
A Practical Guide
Eighth edition
Alan Melville
For further instructor material
please visit:
go.pearson.com/uk/he/resources
ISBN: 978-1-292-4
4 3945-7
Pearson Education Limited 2022
Lecturers adopting the main text are permitted to download and photocopy the manual as required.
,PEARSON EDUCATION LIMITED
Kao Two
Kao Park
Harlow
CM17 9NA
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
This edition published 2022
© Pearson Education Limited 2022
The 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.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292- 43945
5 -7
All 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.
This publication contains copyright material of the IFRS® Foundation in respect of which all
rights are reserved. Reproduced by Pearson Education, Ltd with the permission of the IFRS
Foundation. No permission granted to third parties to reproduce or distribute. For full access to
IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org.
The International Accounting Standards Board®, the IFRS Foundation, the authors and the
publishers do not accept responsibility for any loss caused by acting or refraining from acting
in reliance on the material in this publication, whether such loss is caused by negligence or
otherwise.
, Melville: International Financial Reporting, Instructor's Manual, 8th edition
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, estimates and errors
Solution 4.7, 4.8 and 4.9 8
Chapter 5 Property, plant and equipment
Solutions 5.7 and 5.8 10
Chapter 6 Intangible assets
Solutions 6.8 and 6.9 13
Chapter 7 Impairment of assets
Solutions 7.7 and 7.8 15
Chapter 8 Non-current assets held for sale and discontinued operations
Solution 8.7 16
Chapter 9 Leases
Solutions 9.7 and 9.8 17
Chapter 10 Inventories
Solutions 10.5 and 10.6 19
Chapter 11 Financial instruments
Solution 11.6 21
Chapter 12 Provisions and events after the reporting period
Solution 12.8 23
Chapter 13 Revenue from contracts with customers
Solutions 13.7 and 13.8 24
Chapter 14 Employee benefits
Solutions 14.6 and 14.7 26
Chapter 15 Taxation in financial statements
Solutions 15.7, 15.8 and 15.9 28
Chapter 16 Statement of cash flows
Solutions 16.8, 16.9 and 16.10 34
Chapter 17 Financial reporting in hyperinflationary economies
Solution 17.5 39
iii
© 2022 Pearson Education Limited. All Rights Reserved.
, Melville: International Financial Reporting, Instructor's Manual, 8th edition
Chapter 18 Groups of companies (1)
Solutions 18.6 and 18.7 40
Chapter 19 Groups of companies (2)
Solutions 19.5 and 19.6 45
Chapter 20 Associates and joint arrangements
Solution 20.5 51
Chapter 21 Related parties and changes in foreign exchange rates
Solution 21.4 53
Chapter 22 Ratio analysis
Solutions 22.5, 22.6 and 22.7 54
Chapter 23 Earnings per share
Solutions 23.6, 23.7, 23.8 and 23.9 59
Chapter 24 Segmental analysis
Solution 24.6 61
iv
© 2022 Pearson Education Limited. All Rights Reserved.
