Unit 1

5.0(1)
studied byStudied by 2 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/21

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

22 Terms

1
New cards
Who sets the standards for the accounting in the Anglo-Saxon tradition
Accounting professionals
2
New cards
Who sets the standards for the accounting in the Continental European tradition
The governments
3
New cards
Information purpose in the Anglo-Saxon tradition
For the shareholders and capital markets that are interested in the actual market
4
New cards
Approach of the Anglo-Saxon accounting
Fair value
5
New cards
Fair value approach
Practice of measuring the assets and liabilities at their current market price
6
New cards
Taxation and financial statements in the Anglo-Saxon tradition
They are not linked and are done through different channels
7
New cards
Which companies have extra rules in the continental European tradition
Limited liabilitity companies and listed companies
8
New cards
Approach of the Continental European accounting
Prudence with Historical cost accouting
9
New cards
Historical cost accounting
We cannot include profit that wasn’t realized. This leads to the concept of overvalue, which is a hidden reserve\`
10
New cards
Tax and financial statements in the Continental European system
Taxes are mostly calculated as a percentage
11
New cards
IASB
International Accounting Standards Board
12
New cards
Annual reports
Managment commentary, Auditor’s Report, Financial Statement, CSR Reporting
13
New cards
Mandatory financial statements in the annual reports
Statement of Financial Position (Balance sheet), Notes on accounting policies and other explanatory notes, Statement of Comprehensive Income (Profit and Loss statement), Statement of Changes in Equity, Statement of Cash flow
14
New cards
Other name for the Statement of Financial position
Balance Sheet
15
New cards
Other name for the Statement of Comprehensive income
Profit and loss statement, income statement
16
New cards
Statement of Comprehensive income (P&L) summary
Losses/gains that do and don’t have cash transactions (such as depreciation), shows the flow during the year
17
New cards
IAS 1
Prescribes the formats of the financial statements, but not the businesses that must prepare them
18
New cards
Features of the Consolidated (Group financial statements)
Exclude all internal transactions, aggregation of individual financial statements, companies could be in different countries and different legal entitities\`
19
New cards
2 dimensions of the balance sheet
The economic resources that are controlled, where the finances come from
20
New cards
Liability definition
Present (at the balance sheet date) responsibility obligating the company to act or perform in a certain way towards a 3rd party
21
New cards
Liability 3 bullet point definition
* Arising from an obligating event in the past
* Leading to a transfer of economic resources
* No practical ability to avoid the transfer
22
New cards