This is the fourth edition of the book originally published in 2001. The third edition of this book was the first New Zealand text to be published that explored the New Zealand equivalents of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Since the publication of the third edition of this text, there have been further significant changes in the platform of accounting standards that were released by the New Zealand Financial Reporting Standards board (FRSB) in 2004 as part of the process for adopting International Financial Reporting Standards. Some of the changes were due to ongoing efforts to converge the accounting standards issued by the IASB and the Financial Accounting Standards Board (US).

This book details the most recent changes to accounting standards to January 2008. Any significant changes or chapter updates will be posted on the website for this book (www.mhhe.com/au/samkin4e). Apart from changing the material to incorporate the release of new accounting standards and the revision of other existing accounting standards, this fourth edition has been expanded by a further three chapters. Chapter 1 of the third edition has been split into two chapters. Chapter 1 now concentrates on explaining the process in place within New Zealand that lead to the development, release and enforcement of accounting standards and other accounting-related guidance. Chapter 2 is dedicated to the New Zealand framework. Two additional chapters have been added that address the process of consolidation accounting. This has resulted in the material addressing consolidation accounting being double relative to its coverage in the third edition. Apart from the changes to the chapters that address consolidation accounting, additional end-of-chapter questions have been added to most other chapters. It continues to be a major exercise to comprehensively update this book so that teachers are teaching up-to-date material. The input provided by many people towards the timely completion of this book is gratefully received.

Each chapter of this fourth edition contains learning objectives (structured to specify what it is that we expect a student will be able to do as a result of the learning activity), preface chapter summaries, and a comprehensive end-of-chapter exercise. A glossary of key terms is also provided towards the end of the book. The book provides material that will enable readers to gain a thorough grasp of the contents and practical application of the majority of financial accounting requirements currently in place in New Zealand. In the discussion of these requirements, numerous worked examples, with detailed solutions, are provided throughout the text. The text also actively encourages students to develop their critical thinking skills. From an accounting perspective, critical thinking requires any individual to question, attempt to make sense of, analyse or form judgments on the merits of values of underlying individual accounting standards. Through questioning and analysis, students are encouraged to evaluate their own thinking and the thinking of others, thus enabling them to contribute to a more positive accounting environment in the future.

In addition, as well as addressing how to apply the various accounting requirements, this text also encourages readers to critically evaluate the various rules and guidelines. The aim is to develop accountants who are not only able to apply particular accounting requirements, but who will also be able to contribute to the ongoing improvement of accounting requirements. For this reason, reference is made to various research studies that consider the merit, implications, and costs and benefits of the various accounting requirements.

Reference is also made to a number of newspaper reports that document different aspects of the accounting requirements in place within New Zealand and Australia. The permission of copyright holders to reproduce this material is gratefully acknowledged.

Social-responsibility reporting is an increasingly important area of accounting, and one that is rapidly developing. Its importance was further highlighted as a result of the February 2007 report of the Intergovernmental Panel on Climate Change (entitled Working Group 1 Fourth Assessment Report). The report emphasised the link between corporate activities and climate change and the need for rapid improvements in corporate environmental performance and related accountability. While this book predominantly considers financial accounting and reporting, Chapter 33 focuses on social-responsibility reporting and provides the most up-to-date and comprehensive material available on this important topic.

Writing a text like this is an extremely time-consuming exercise and so it is gratifying that the effort involved has been rewarded by many institutions across New Zealand electing to prescribe the previous edition of this book as part of their accounting program. Given the success of the previous editions, every effort has been made to ensure that the fourth edition is equally valuable to students and teachers alike, and that it has been substantially and thoroughly revised.

Grant Samkin

University of Waikato