An accounting process that involves allocating the purchase consideration's fair value between the underlying tangible and intangible net assets of a company being acquired.
The value of an asset as represented on the balance sheet, detailing how various types of assets are recorded considering depreciation, amortization, and valuation methods like fair value accounting.
Understand the accounting process of including borrowing costs in the cost of a qualifying asset and how this affects financial statements.
A document setting out the basic accounting concepts informing International Accounting Standards and International Financial Reporting Standards, serving as a guide in the preparation and presentation of financial statements.
Consolidated financial statements combine the financial records of a group of companies, providing a comprehensive view of the entire group's financial situation.
The consolidated statement of financial position, often referred to as the consolidated balance sheet, provides a snapshot of a parent and its subsidiaries’ financial situation at a specific point in time.
Depreciation refers to the methodical reduction in the recorded cost of a tangible fixed asset, allocated over its useful life. It is a key accounting concept employed to denote the impairment of value of assets over time due to wear and tear, age, or obsolescence.
The European Financial Reporting Advisory Group (EFRAG) was established in 2001 to advise the European Commission on the use of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) within the EU. It coordinates the views of preparers and users of financial statements as well as accounting professionals and represents these to both the Commission and the International Accounting Standards Board (IASB).
Costs or income that affect a company's profit and loss account and need special disclosure due to their unusual size or incidence, despite falling within ordinary activities.
Fair Value Accounting (FVA) refers to the method of valuing assets and liabilities at prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Financial Reporting Standards (FRS) provide guidelines and regulations on how financial statements should be prepared and presented. These standards ensure consistency, reliability, and comparability of financial reports across different entities, fostering transparency and trust in financial information.
A detailed overview of FRS 102, an accounting standard issued by the Financial Reporting Council in 2013 to supersede previous UK GAAP, bringing it in line with international standards.
Fundamental accounting concepts are the core principles that underpin the practice of accountancy, shaping the integrity, consistency, and efficiency of financial reporting.
US GAAP refers to the accounting rules, standards, and concepts that guide US accountants in measuring, recording, and reporting financial transactions.
The International Accounting Standards Board (IASB) is the independent, private sector body that develops and approves International Financial Reporting Standards (IFRS). The IASB was formed to achieve transparency, accountability, and efficiency in financial markets around the world through consistent and high-quality accounting standards.
The term IFRIC stands for the International Financial Reporting Interpretations Committee, which is responsible for developing interpretive guidance on accounting issues under the International Financial Reporting Standards (IFRS).
An abbreviation for International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) which provides simplified financial reporting standards for small to medium-sized entities.
An impairment review is a critical process conducted by entities to assess whether the carrying amount of a fixed asset or goodwill may not be recoverable due to certain events or changes in circumstances.
A comprehensive guide to the International Accounting Standards (IAS) issued by the International Accounting Standards Committee (IASC) and maintained by the International Accounting Standards Board (IASB).
The London-based privately funded organization responsible for developing a single set of high-quality, understandable International Financial Reporting Standards (IFRS) for general-purpose financial statements.
The International Financial Reporting Interpretations Committee (IFRIC) assists the International Accounting Standards Board (IASB) by providing guidance on the application and interpretation of International Financial Reporting Standards (IFRS).
International Financial Reporting Standards (IFRS) are a set of accounting rules that standardize how businesses report their financial outcomes globally, ensuring transparency, accountability, and efficiency in financial markets.
International Financial Reporting Standards (IFRS) are a set of international accounting standards issued by the International Accounting Standards Board (IASB) since 2001, aimed at creating consistent financial statements that are comparable across international boundaries.
International Financial Reporting Standards (IFRS) are a set of accounting standards developed and maintained by the International Accounting Standards Board (IASB). They aim to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
The method of presenting an asset in the balance sheet where the asset linked to financing is shown gross, with the financing deducted within a single asset caption.
Net Realizable Value (NRV) is the estimated selling price of goods, services, or assets minus any costs associated with making the sale, including completion and disposal costs.
New UK Generally Accepted Accounting Practice (UK GAAP) refers to the financial reporting standards that replace previous UK GAAP standards and align more closely with International Financial Reporting Standards (IFRS) while considering the specifics of UK companies.
Non-Controlling Interest (NCI) is a term in International Financial Reporting Standards (IFRS) used to describe the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.
Under former UK accounting rules, a 'non-equity share' referred to shares in a company that had limited rights or redeemable terms. This concept was defined by Financial Reporting Standard (FRS) 4 but was later replaced by FRS 25.
Purchase accounting, also known as acquisition accounting, is the method used in financial accounting to consolidate the financial statements of two companies when one company acquires another. It involves revaluing the acquired company's assets and liabilities to fair value and recognizing goodwill, if any, in the consolidated financial statements.
The Standard Interpretations Committee (SIC), now known as the International Financial Reporting Interpretations Committee (IFRIC), was established by the International Accounting Standards Committee (IASC) to provide interpretations of International Financial Reporting Standards (IFRS). These interpretations aimed to standardize the application of accounting standards across various regions and industries.
The Standard Interpretations Committee (SIC), also known as the IFRIC (International Financial Reporting Interpretations Committee), develops interpretations of accounting standards to address issues that are not specifically covered in International Financial Reporting Standards (IFRS).
A financial statement that provides detailed information about a company's cash inflows and outflows during a specific period. It is essential for assessing the liquidity, flexibility, and overall financial health of an organization.
The Statement of Changes in Equity (SOCE) is a financial document that outlines the changes in shareholders' equity over a reporting period. It highlights changes due to transactions with owners, profits, losses, and other comprehensive income.
The statement of comprehensive income, as defined by the IFRS and applicable FRS in the UK and Republic of Ireland, presents a complete picture of a company's financial performance beyond the traditional income statement.
In accounting, the Statement of Financial Position is an important financial statement that provides a snapshot of a company's financial health at a specific point in time. It is often referred to as a balance sheet and is critical for understanding the assets, liabilities, and equity of a business.
An older term for the statement of total recognized gains and losses, now commonly referred to as the statement of comprehensive income, which provides a comprehensive summary of all income and expenses recognized in a financial period.
The Urgent Issues Task Force (UITF) is a body responsible for providing timely guidance on new or emerging accounting issues that may not yet be addressed sufficiently by existing standards.
