The Accounting Council is a body established to provide advice on accounting and financial reporting policies, aiding the Financial Reporting Council (FRC) in the development of Financial Reporting Standards.
Brands, as intangible assets, play a crucial role in a company's strategic differentiation and financial performance. The accounting treatment of brands varies globally and has evolved to address the complexity in valuing and amortizing these assets.
Consignment Stock refers to products owned by one party but held and managed by another party with the right to sell or return the goods. This ownership arrangement requires careful accounting practices to reflect commercial realities accurately in financial statements.
Deemed cost represents a substituted value for the net book value of an asset when an entity transitions to a new accounting regime. This approach allows entities to treat assets as if initially recognized at this value on the specified date.
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.
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.
An important accounting practice designed to manage the impact of volatile financial instruments on a company's profit and loss account through the use of financial derivatives to hedge against risk.
A memorandum item in the annual accounts and report of a company giving an abbreviated restatement of the profit and loss account showing the reported profit or loss as if no revaluations had been made.
Internally generated goodwill, also known as inherent or non-purchased goodwill, refers to the presumed value present in an existing business that has not been evidenced by a purchase transaction. According to Section 18 of the Financial Reporting Standard applicable in the UK and Republic of Ireland, and International Accounting Standard 38, such goodwill should not be recognized on the balance sheet.
Inventory Valuation involves determining the monetary worth of raw materials, work-in-progress, and finished goods, as prescribed by specific accounting standards. It plays a critical role in both financial and management accounting.
Generally accepted accounting principles tailored to small companies to reduce the compliance burden relative to the informational value provided to the owners.
A long-term contract spans multiple accounting periods and involves the design, manufacture, or construction of significant assets, such as in construction or civil engineering industries. Proper accounting measures must be taken to allocate reasonable profit to each period.
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.
The currency in which the financial statements of an entity are presented, which can differ from the functional currency, especially in multinational groups with subsidiaries in different countries. It often requires a common presentation currency for consolidated financial statements.
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 detailed examination of key contributions by Professor David Solomons on the education, training, and standards of professional accounting.
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.
