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Book Review

Australian Accounting Standards

Reviewed by Dr. Muhammad Mahboob Ali, Chairman and Associate Professor, School of Business Administration, The People's University of Bangladesh.

The book “Australian Accounting Standards” is written by six prolific and specialist authors jointly, and is a widespread work aimed at both students as well as practitioners of accounting. Though the book is primarily focused on Australian Accounting Standards Board's accounting requirements, but it also reflects the changing environment in the global arena. The book is a very comprehensive and accommodating one with special reference to the Australian perspective.

The book is divided into four parts: Framework, Elements, Disclosure and Economic Entities. It also consists of useful terms and an index. The book has been a total of twenty-five chapters divided under four parts.

The first part of the book covers two chapters. These chapters give a primary idea of the accounting procedure. In the second part of the book a total of ten chapters are discussed. In these ten chapters, the authors discuss basic principles with real life examples. Part Three of the book consists of three chapters. These chapters are well written and point out the importance and applicability of the disclosures. Part Four of the book considers ten issues. These are; Controlled entities-the consolidation method; Consolidated financial statements: Wholly owned subsidiaries; Consolidated financial statements: intra-group transactions; Consolidated financial statements: minority interest; Consolidated financial statements: indirect ownership interests; Consolidated financial statements: foreign subsidiaries; Accounting for investments in associates; Interest in joint ventures; Segment reporting-AASB 114; and Share-based payment.

The book makes a bridge between the expectations of accounting professionals and students. The book is very straightforward with exercises, pictures and charts demonstrating how accounting can be easily understandable. The book covers accounting in an enlightening style and links real-life examples to demonstrate the relevance of accounting. The book discusses new financial reporting procedures as per the Australian Accounting Standard Board's requirements. For example, in Chapter 21, it is stated that the foreign operation will record its transactions generally in a local currency. However, the local currency may not be that of the economy that determines the pricing of those transactions (page 894). This comment is very important, as it is relevant to the practical International transactions worldwide.

It is a very explanatory and excellent book in learning the fundamental skills to prepare for accounting courses in Australia. The book provides a window into the processes which deserve a wide range of reading by both students and practioners who wish to gain accounting knowledge as well as gaining theoretical knowledge. Each chapter contains exhaustive exercises to reinforce the material covered in the book.

Las, but not the least, the six authors must get special mention for presenting such a wonderful book of accounting. The authors made a wholehearted effort and with passion. This book should be well recognized, not only in Australia but other parts of the world, for its merit.

Australian Accounting Standards, Picker Ruth, Leo Ken, Alfredson Keith., Radford Jennie, Pacter Paul, and Wise Victoria, John Wiley & Sons Australia, Ltd., 2006 PP:1110, ISBN-10 0 470 81148 X.