Archive about 'Glossary-Accounting Terms'

GLOSSARY of Accounting Terms - B

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Basic earnings per share

Profit or loss that is attributable to ordinary equity holders of the parent entity (the numerator) divided by the weighted average number of ordinary shares outstanding during the period (the denominator).

Borrowing costs

Interest and other costs incurred by an entity in connection with the borrowing of funds.

Business

An integrated set [...]

GLOSSARY of Accounting Terms -F

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FIFO (first-in, first-out)

The assumption that the items of inventory that were purchased or produced first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently purchased or produced.

Finance lease

A lease that transfers substantially all the risks and rewards incident to ownership [...]

GLOSSARY of Accounting Terms - E

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Economic life

Either:

the period over which an asset is expected to be economically usable by one or more users; or
the number of production or similar units expected to be obtained from the asset by one or more users.

Equity

The residual interest in the assets of the entity after deducting all its [...]

GLOSSARY of Accounting Terms - D

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Depreciation (amortisation)

The systematic allocation of the depreciable amount of an asset over its useful life.
[ In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’. The two terms have the same meaning. ]
 

Dividends

Distributions of profits to holders of equity investments in proportion [...]

GLOSSARY of Accounting Terms -C

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Capital

Under a financial concept of capital, such as invested money or invested purchasing power, the net assets or equity of the entity. The financial concept of capital is adopted by most entities.
Under a physical concept of capital, such as operating capability, the productive capacity of the entity based on, for [...]

GLOSSARY of Accounting Terms - A

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Asset

A resource controlled by an entity as a result of past events; and
from which future economic benefits are expected to flow to the entity

Abnormal item

Abnormal items are transactions or other events that are both “unusual in nature” and “infrequent in occurrence”.

Absorption costing

A [...]