Accounting bases refer to the methods and techniques used to apply fundamental accounting concepts to financial transactions and items when preparing financial statements. The specific bases adopted by an organization form its accounting policies.
A comprehensive document detailing a business's accounting policies and procedures, often including account codes and a chart of accounts. Key aspects include methods for treating depreciation and other asset-related processes.
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.
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.
Audit rotation is the policy of appointing an audit firm for a set period only, after which a different firm must be employed. This practice aims to prevent the renewal of audits from influencing conduct and ensure auditor independence. However, it faces criticism for cost implications, disruption, and potentially reduced audit quality.
Comparative figures are provided in financial statements for previous years of an organization, allowing for comparison and sometimes requiring adjustment if accounting policies have changed.
Originally one of the four fundamental accounting concepts, the consistency concept mandates uniform treatment of like items within and across accounting periods, ensuring consistent application of accounting policies.
A Financial Reporting Release (FRR) is a pronouncement made by the Securities and Exchange Commission (SEC) in the United States on matters of financial reporting policy.
An in-depth analysis of financial statements to assess a business's performance and position, using ratios to evaluate profitability, solvency, working capital management, liquidity, and capital structure.
Nonprofit accounting encompasses the accounting policies, procedures, and techniques employed by nonprofit organizations. It is different for governmental units compared to nongovernmental units such as colleges, hospitals, voluntary health and welfare organizations, and charities.
Adjustments applicable to prior accounting periods due to changes in accounting policies or correction of material errors. These are not normal recurring adjustments or corrections of accounting estimates.
A financial statement that combines the income statement and the statement of retained earnings, detailing a company's profit, dividends, and equity changes during a period, as outlined by the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102, Section 6).
Statements of Standard Accounting Practice (SSAPs) are a series of accounting standards issued by the Accounting Standards Committee between 1971 and 1990. These standards were utilized to ensure consistency and reliability in financial reporting practices.
