Accrued benefits refer to the benefits that are due under a defined-benefit pension scheme in relation to the service rendered by an employee up to a specific date. These may be calculated based on current earnings or protected final earnings, and are governed by various regulatory standards depending on the jurisdiction.
Adjusting events, also known as post-balance-sheet events, occur between the balance-sheet date and the date on which financial statements are approved, providing additional evidence of conditions existing at the balance-sheet date.
Asset classification refers to the systematic categorization of assets on a balance sheet, distinguishing between fixed and current assets as mandated by the Companies Act and Financial Reporting Standard (FRS 102) in the UK and Republic of Ireland.
Compensated absences refer to certain periods during which employees are paid even though they do not attend work. This concept is crucial for proper financial reporting and management in organizations.
A compound instrument is a financial instrument that contains both an equity element and a debt element. These are complex financial instruments which require careful handling in financial reporting.
Farming, as defined by the Income Tax (Trading and Other Income) Act 2005, involves the occupation of land predominantly for the purpose of husbandry, excluding market gardening. Special tax provisions and reporting rules apply to farming activities.
A finance lease transfers substantially all the risks and rewards of ownership of an asset to the lessee. In accounting, it is akin to the lessee owning the asset. This entry describes the implications and guidelines involved in finance leases.
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.
The method of presenting financial statements chosen by an organization. Incorporated bodies must use the formats prescribed by relevant legislative and regulatory frameworks, such as the Companies Act, for their balance sheet and profit and loss account.
FRS 102 sets the standard for accounting principles and practices for small to medium-sized enterprises in the UK and Republic of Ireland, aiming to simplify reporting requirements and enhance financial transparency.
The income statement, also known as a profit and loss account, is a financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specific period. Under both International Accounting Standards (IAS) and the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the income statement plays a pivotal role in financial reporting.
A lease is a contractual agreement in which a lessor grants the lessee the right to use an asset for a specified period in return for specific rental payments. While the lessor retains ownership rights, the lessee gains usage rights.
Materiality is an important accounting principle determining the significance of financial information and its impact on decision-making. This concept is essential for accurate financial reporting and is influenced by the size, nature, and circumstances of an item.
A financial statement summarizing the performance of an organization during a financial period, covering recognized gains and losses, dividend payments, and capital changes in shareholders' equity. Essential under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
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.
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).
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.
