corporate reporting

Accounting Directive

EU directive (2013/34/EU) regulating annual and consolidated financial statements

Annual Financial Statements

official yearly financial reports including balance sheet income statement notes cash flow statement

Consolidated Financial Statements

financial statements combining parent company and subsidiaries into one report

True and Fair View

principle requiring financial statements to accurately represent company reality

Going Concern

assumption that the company will continue operating in the foreseeable future

Prudence

accounting principle requiring caution do not overstate profits or assets and recognize losses early

Accrual Basis

transactions recorded when they occur not when cash is exchanged

Substance Over Form

economic reality is more important than legal form

Consistency

accounting methods must remain stable over time for comparability

Materiality

only information relevant to users decisions must be disclosed

Balance Sheet

statement showing assets liabilities and equity at a specific date

Assets

resources owned or controlled by a company such as cash buildings equipment

Liabilities

financial obligations and debts owed by a company

Equity / Capital and Reserves

owners residual interest after liabilities are deducted

Fixed Assets

long term assets used in operations including tangible intangible and financial assets

Intangible Assets

non physical assets such as patents trademarks software

Tangible Assets

physical assets such as machinery buildings

Current Assets

short term assets expected to be used or converted into cash within one year

Provisions

amounts set aside for future liabilities or risks

Payables

amounts a company owes to suppliers or creditors

Accruals

revenues or expenses recorded before cash payment or receipt

Deferred Income

money received before goods or services are delivered

Profit and Loss Account (Income Statement)

statement showing revenues costs and profit or loss over a period

Revenue

income generated from business activities

Production Costs

costs incurred in producing goods or services

Financial Income

income from financial activities such as interest earned

Financial Charges

costs from financing such as loan interest

Profit Before Taxes

profit calculated before tax deduction

Cash Flow Statement

statement showing movement of cash during the year

Operating Activities

cash flows from normal business operations

Investing Activities

cash flows related to investment and asset purchases

Financing Activities

cash flows related to loans shares and dividends

Notes to Financial Statements

additional explanations supporting financial statements

Public-Interest Entity (PIE)

company considered economically significant such as banks listed companies insurance firms

Listed Company

company whose shares are traded on a stock exchange

IAS/IFRS

international accounting standards used globally

Fair Value

current market value of an asset or liability

Historical Cost

original purchase price of an asset

Non-Financial Reporting Directive (NFRD)

EU directive requiring large companies to disclose ESG information

Corporate Sustainability Reporting Directive (CSRD)

EU directive expanding sustainability reporting obligations

Sustainability Reporting

disclosure of environmental social and governance impacts

European Sustainability Reporting Standards (ESRS)

mandatory EU standards for sustainability reporting under CSRD

Non-Financial Statement

report containing ESG and sustainability information

Key Performance Indicators (KPIs)

measurable indicators used to evaluate performance

Due Diligence

process of identifying and managing business risks

Anti-Corruption Policies

company measures to prevent bribery and corruption

Management Report

report explaining company performance risks and strategy