Archive about 'Glossary-Accounting Terms'

GLOSSARY of Accounting Terms -R

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:

it is probable […]

GLOSSARY of Accounting Terms -P

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 for the […]

GLOSSARY of Accounting Terms -O

    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 of equity instruments.

GLOSSARY of Accounting Terms - N

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 course of […]

GLOSSARY of Accounting Terms -M

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 and jointly […]

GLOSSARY of Accounting Terms -L

    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 […]

GLOSSARY of Accounting Terms -J

    RETURN TO GLOSSARY INDEX 

Joint venture

A contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.

GLOSSARY of Accounting Terms - I

    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 financial report containing either a […]

GLOSSARY of Accounting Terms- H

    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 obligation, […]

GLOSSARY of Accounting Terms - G

    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 economic benefits arising from assets […]