A definitive set of criteria used to guide financial accounting and reporting practices globally, formulated by various authoritative bodies such as FASB, IASB, and FRC.
An audit opinion is an expression provided by auditors within an auditors' report, stating whether the financial statements have been prepared consistently using appropriate accounting policies and standards, and if there is adequate disclosure of vital information.
Legislation designed to curb fees, interest rate increases, and other abusive practices by credit card companies. The legislation went into effect fully in February 2010.
Disclosure involves the provision of financial and non-financial information to stakeholders interested in the economic activities of an organization. It is standard practice for transparency and accountability in modern businesses.
Dual agency refers to a real estate scenario where a single agent represents both the buyer and the seller in a transaction. This practice is accepted in many states, provided there is full disclosure and consent from both parties. However, it is often met with skepticism as each party prefers individual representation to have their interests safeguarded.
Gain Contingency refers to a potential or pending development that may result in a future gain to the company, such as a successful lawsuit against another company.
A material fact is a fact that is significant or essential to the issue at hand. In the context of legal proceedings or transactions, it is a fact that could sway a decision or compel the need for full disclosure.
Non-adjusting events are occurrences that take place between the balance-sheet date and the approval of financial statements by the board of directors. These events do not relate to conditions that existed at the balance-sheet date but necessitate disclosure if they are material to the financial statements.
A term used in the auditor's report to signify sufficient disclosure, reasonable detail, and absence of bias, ensuring the integrity and accuracy of financial statements.
The first law enacted by Congress to regulate the securities markets, approved May 26, 1933, as the Truth in Securities Act.
Transparency in financial reporting refers to the ease of understanding financial information through the full, clear, and timely disclosure of relevant details. It enables stakeholders to make informed decisions and detect fraudulent activities or manipulations.
