Regulatory Framework in Accounting

Flashcards covering key terms and definitions relevant to the regulatory framework for accounting standards and international financial reporting standards.

International Financial Reporting Standards (IFRS)

Standards for financial reporting that aim to make financial statements comparable across different organizations.

International Accounting Standards Board (IASB)

The board responsible for establishing accounting standards and ensuring they are followed globally.

True and Fair View

A principle that financial statements must present an accurate reflection of a company's financial position.

IFRS Foundation

An organization that oversees the development and promotion of international financial reporting standards.

IFRS Interpretations Committee

A body that provides guidance on the application of IFRS and clarifies issues not explicitly addressed in standards.

International Sustainability Standards Board (ISSB)

A board focused on developing sustainability-related disclosure standards for companies.

Financial Reporting Council (FRC)

The regulatory body in the UK responsible for overseeing the accounting framework and compliance with standards.

Convergence of Standards

The effort to align national accounting standards with international standards for greater consistency.

Recognition

The process of recording a transaction in the financial statements.

Measurement

Determining the monetary amounts at which to report transactions in financial statements.

Presentation

The way financial information is displayed in financial statements.

Disclosure

The provision of additional information in financial statements to enhance understanding of the financial position.

Stakeholders

Individuals or groups with an interest in the financial performance of a company, including owners, employees, and customers.

Fair Presentation

Financial statements that accurately represent the financial condition and results of operations of a company.

Advisory Council

A consultative body that advises standard-setting boards on various issues to ensure standards are practical.

Comparability

The ability to compare financial statements from different organizations, facilitated by standardized reporting.

Scope of IFRS Standards

Specifies the applicability and limits of each IFRS standard in different scenarios.