Accounting policies are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements. They ensure consistency, transparency, and comparability of financial reporting.
Accounting principles are the foundation rules and guidelines that companies must follow when reporting financial data, ensuring consistency, transparency, and comparability of financial statements.
The Accounting Standards Committee (ASC) is a significant entity responsible for establishing and maintaining accounting standards to ensure consistency, transparency, and reliability in financial reporting.
An auditors' report provides an independent opinion on the fairness and accuracy of a company's financial statements, central to ensuring transparency and integrity in financial reporting.
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.
A disclosure statement is a legally required document in which sellers must reveal specified information to potential buyers. It ensures transparency in various transactions, particularly in real estate and investment interests.
EuroSOX refers to European initiatives, particularly regulatory frameworks, aimed at enhancing and harmonizing financial reporting and disclosure standards across the EU to improve transparency and confidence in financial markets.
The requirement that financial statements should not be misleading. 'Fair presentation' ensures that financial reports provide a true and fair view of the company's financial position in accordance with accounting standards.
Faithful representation means that financial information accurately reflects the real-world economic events or conditions it represents. This concept is central to the credibility of financial reports and ensures that information is complete, free from bias, and free from error.
Financial Reporting Releases (FRRs) are official communications issued by the SEC providing guidance on various accounting and auditing matters to ensure transparency and accuracy in financial reporting.
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.
The Freedom of Information Act (FOIA) is a federal law that provides the public with the right to request access to records from any federal agency. It is often described as the law that keeps citizens in the know about their government.
Full Disclosure refers to the obligation to release all material information pertinent to a transaction, especially in the context of securities where public information requirements are regulated.
Generally Accepted Accounting Principles (GAAP) are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements. GAAP’s objective is to ensure that financial reporting is transparent and consistent from one organization to another.
Conventions, rules, and procedures that define accepted accounting practice, including broad guidelines as well as detailed procedures, ensuring consistency and transparency in financial reporting.
Funds held in reserve but not disclosed on the balance sheet, often referred to as off-balance-sheet reserves or secret reserves. Used historically within some UK banking institutions, these reserves are now effectively prohibited due to their potential for earnings manipulation and lack of transparency.
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 IFRS Foundation is a not-for-profit organization responsible for the development and oversight of the International Financial Reporting Standards (IFRS). These standards provide a common global language for financial reporting, ensuring transparency, accountability, and efficiency in financial markets worldwide.
International Accounting Standards (IAS) are issued by the International Accounting Standards Board (IASB) to standardize accounting principles and procedures across different countries to enhance comparability and transparency in financial statements.
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 Public Sector Accounting Standard (IPSAS) sets forth accounting principles specifically tailored to the public sector, ensuring reliable and transparent financial reporting globally.
The International Public Sector Accounting Standards Board (IPSASB) is a global standard-setting body responsible for developing and promoting the adoption of International Public Sector Accounting Standards (IPSAS) to enhance the quality and transparency of public sector financial reporting.
MiFID (Markets in Financial Instruments Directive) is a regulatory framework that standardizes the financial markets across the European Union, enhancing transparency and protecting investors.
A Public Interest Entity (PIE) is an organization that operates under the scrutiny of the public eye due to its size, importance, or influence in the marketplace. These entities often include publicly traded companies, banks, insurance companies, and other financially significant institutions.
A public sale refers to a sale conducted through a notice to the public where members of the public are invited to bid. These sales are typically characterized by transparency and open competition among bidders.
A quoted company, also known as a listed company, is a business entity whose shares are traded on a stock exchange. These companies are subject to strict regulatory requirements and transparency rules to protect investors.
A related party transaction is an interaction between two parties where one party can exercise control or significant influence over the operating policies of the other, resulting from a special relationship such as between a business enterprise and its principal owners.
A slush fund is a financial stash reserved for illicit purposes, such as bribery or unethical activities, often without an accurate accounting record.
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.
Understanding the concept of 'Up Front' in financial, legal, and conversational contexts is essential for clear communication and transparency in agreements and interactions.
