Accounting literature refers to the procedural and conceptual approaches in the teaching of an introductory accounting course. This book integrates these two approaches by teaching students to understand the why, before considering the how of accounting. The pedagogical philosophy used here is referred to as the ‘concepts model’, hence the title. This impacts on both the order of teaching the topics as well as how various topics are taught. The effect of the concepts-based approach is particularly evident in the chapters that relate to the accounting process which give students a complete, conceptual understanding of the underlying transactions before applying the accounting equation and then only processing the transactions through bookkeeping entries. By this means, students are able to acquire a conceptual understanding of each topic before considering the procedural aspects.

The seventh edition of A Concepts-based Introduction to Financial Accounting is up-to-date with the requirements of the 2018 Conceptual Framework as well as the current requirements of International Financial Reporting Standards (IFRS). This book is accompanied by Questions, Exercises and Problems in Financial Accounting: A Concepts-based Introduction, by the same author.

It incorporates all the successful pedagogical features of earlier editions such as learning path tools at the beginning of each chapter, the highlighting of key definitions in the text, the integration of pause-and-reflect scenarios throughout the text, and extracts from published financial statements within each chapter, which relate to the chapter content.

About the author

David Kolitz is a Senior Lecturer in the Business School at the University of Exeter. He was previously Associate Professor and Assistant Dean in the Faculty of Commerce, Law and Management at the University of the Witwatersrand. He is an experienced accounting academic and author with a special interest in accounting education.

1 The Accounting Environment 

2 Fundamental Accounting Concepts 

3 The Accounting Equation and the Analysis of Transactions 

4 Recording External Transactions 

5 Recording Internal Transactions 

6 Preparation and Presentation of Financial Statements

7 Closing Entries 

8 Value-added Tax 

9 Purchase and Sale Transactions 

10 Analysis Journals 

11 Property, Plant and Equipment 

12 Inventory and Cost of Sales 

13 Accounts Receivable 

14 Cash and Cash Equivalents

15 Accounts Payable 

16 Owner's Equity and Non-current Liabilities 

17 Partnerships 

18 Companies 

19 Statement of Cash Flows 

20 Analysis of Financial Statements 

21 Non-business Entities