Archive about 'Glossary-Accounting Terms'
Tweet RETURN TO GLOSSARY INDEX Realisable value The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal. Recognition The process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the following criteria for recognition: [...]
Tweet RETURN TO GLOSSARY INDEX Parent An entity that has one or more subsidiaries. Profit The residual amount that remains after expenses (including capital maintenance adjustments, where appropriate) have been deducted from income. Any amount over and above that required to maintain the capital at the beginning of the period is profit. Profit or loss [...]
Tweet RETURN TO GLOSSARY INDEX Operating activities The principal revenue-producing activities of an entity and other activities that are not investing or financing activities. Operating cycle The time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Ordinary share An equity instrument that is subordinate to all other classes [...]
Tweet RETURN TO GLOSSARY INDEX Net realisable value The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Net realisable value refers to the net amount that an entity expects to realise from the sale of inventory in the ordinary [...]
Tweet RETURN TO GLOSSARY INDEX Matching of costs with revenues A process in which expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the earning of specific items of income. This process involves the simultaneous or combined recognition of revenues and expenses that result directly [...]
Tweet RETURN TO GLOSSARY INDEX Liability A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Liquidity The availability of cash in the near future after taking account of financial commitments over this period. Losses Decreases [...]
Tweet RETURN TO GLOSSARY INDEX Joint venture A contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.
Tweet RETURN TO GLOSSARY INDEX Income Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. Intangible asset An identifiable non-monetary asset without physical substance. Interim financial report A [...]
Tweet RETURN TO GLOSSARY INDEX Historical cost A measurement basis according to which assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the [...]
Tweet RETURN TO GLOSSARY INDEX Gains Increases in economic benefits and as such are no different in nature from revenue. Going concern The financial statements are prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. Goodwill Future [...]