Stewardship is a traditional approach in accounting that emphasizes the duty of stewards or agents, such as company directors, to provide accurate and reliable financial information concerning resources they control but do not own, usually for the proprietors or shareholders.
A method of calculating the amount by which a fixed asset is to be depreciated in an accounting period, using a constant annual depreciation charge against profits year by year.
An important concept in accounting, according to which transactions and other events are accounted for by their commercial reality rather than their legal form.
An abbreviated form of the annual accounts and report that can be sent by listed companies to their shareholders instead of the full report, given specific conditions are met.
Tax accounting is an accounting specialization focusing on tax preparation, compliance, and planning. It involves the application of accounting principles to adhere to tax laws and accurately report tax-related information.
A tax year is a period used for calculating annual income tax returns. It is commonly a calendar year but can also be a fiscal year, which is any consecutive 12-month period that does not necessarily start on January 1st.
A fall in the value of an asset that is expected to be temporary. Under historical-cost accounting, no adjustments are made for temporary diminutions unless they become permanent.
Termination benefits refer to those additional perks an employee receives when their employment ends at the employer's behest, including voluntary redundancy scenarios treated as employer-initiated terminations.
The principle that a company should provide financial information to its users without undue delay, ensuring the data arrives in time to influence economic decisions. Timeliness is critical in maintaining the information's relevance and impact.
Trade loading, also known as channel stuffing, is a practice where manufacturers or suppliers induce more products into the distribution channel than the end customer demand, often through aggressive sales tactics, to inflate short-term sales and revenue figures.
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.
UK GAAP refers to the practices followed by British accountants in preparing company accounts, governed by accounting standards, theoretical accounting concepts, and legal requirements. These are increasingly critical in determining taxable profits.
UK GAAP, or Generally Accepted Accounting Practice, refers to the framework of accounting standards and principles that accountants in the United Kingdom must follow to ensure financial statements are consistent and comparable.
An unconsolidated subsidiary refers to a subsidiary undertaking that, while a subsidiary of a group, is not included in the consolidated financial statements of the group.
Understandability is a core principle in financial reporting which ensures that financial information provided by a company can be comprehended by individuals with a reasonable knowledge of business and accounting.
Uniform Capitalization Rules (UNICAP) are a set of tax accounting principles governing the capitalization of direct and indirect costs to property produced by taxpayers or acquired for resale. Established under the Tax Reform Act of 1986, these rules aim to ensure consistent decision-making regarding inventory cost allocation, leading to more accurate financial reporting and tax compliance.
Unrealized appreciation refers to the increase in the value of an asset that has not yet been sold, calculated as the excess of the asset's fair market value over its adjusted basis. This appreciation is recognized for financial reporting purposes but does not incur income tax until the asset is sold.
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.
The principle that the reliability (faithful representation) of the financial information provided by a company should be open to confirmation, i.e., that an independent person with a reasonable knowledge of accounting should be able to look at the same data and reach broadly similar conclusions. The International Accounting Standards Board's Conceptual Framework for Financial Reporting recognizes verifiability as a qualitative characteristic that enhances the usefulness of financial information.
The presentation of a financial statement where debits and credits are displayed one above the other.
Wear and tear refers to the reduction in value of a fixed asset as a result of its regular usage and the inevitable damage it sustains over its working life. It is one of the primary reasons behind asset depreciation.
Window dressing refers to any practice aiming to make a financial situation appear more favorable than it really is, often used by accountants to enhance the look of balance sheets.
Work in Process (WIP) refers to the materials and components that have begun their journey in the production process but are not yet completed products. It is an essential concept in manufacturing and inventory management.
An illustrious global event that gathers accountants from around the world to discuss the latest trends, challenges, and innovations in the field of accountancy.
An international conference of accounting professionals first held in St Louis, USA, in 1904. It is now held at four-yearly intervals under the auspices of the International Federation of Accountants (IFAC). The nineteenth Congress was held in Rome in 2014.
The act of reducing the value of an asset or a debt to zero in a balance sheet, often due to obsolescence, expiration, or uncollectibility.
XBRL (eXtensible Business Reporting Language) is a global framework for exchanging business information digitally, aimed at improved efficiency, accuracy, and transparency in financial reporting.
A year is traditionally understood as a period of time consisting of 365 days, or 366 days in a leap year, which represents one complete orbit of the Earth around the Sun.
Year-end refers to the end of an accounting period, which may align with the calendar year or a fiscal year, and is a pivotal moment when financial books are closed.
