Lecture Notes: Financial Accounting Standards & Disclosures (Vocabulary flashcards)

A set of vocabulary-style flashcards covering GAAP, standard-setters, the conceptual framework, qualitative characteristics, disclosure practices, and common financial statements and reports.

GAAP

Generally Accepted Accounting Principles; the US accounting standards used to prepare financial statements, based on formal standards that investors and creditors rely on.

FASB

Financial Accounting Standards Board; the U.S. body that develops GAAP; standard-setter overseen by the SEC.

IASB

International Accounting Standards Board; develops IFRS and serves as the international counterpart to FASB.

SEC

Securities and Exchange Commission; U.S. government agency that regulates securities markets and oversees corporate disclosures and accounting standard-setting.

Conceptual Framework

The underlying foundation providing objectives and concepts for developing accounting standards and interpreting accounting information.

Qualitative Characteristics

Traits of useful financial information, including relevance, faithful representation, plus enhancing qualities like comparability, verifiability, timeliness, and understandability.

Assumptions Under GAAP

Foundational assumptions guiding GAAP, such as economic entity, going concern, monetary unit, and periodicity.

Annual Report

Comprehensive report filed by public companies (Form 10-K) including primary financial statements and additional disclosures.

Form 10-K

The annual report filed with the SEC detailing a company’s financial condition, results of operations, and disclosures.

Disclosure Notes

Supplemental notes accompanying the financial statements that provide disaggregated information and support for reported amounts.

Subsequent Events

Events occurring after the reporting period but before issuance of the statements, disclosed in notes.

Related-Party Transactions

Transactions with parties related by family, ownership, or control; disclosed in notes.

Management Discussion and Analysis (MD&A)

Management’s narrative analysis of financial results, liquidity, risks, and other factors.

Executive Compensation

Disclosure of executive pay, including salaries, stock options, and other compensation.)

Form 8-K

Current SEC report filed to disclose major events on a timely basis (e.g., acquisitions, restatements, leadership changes).

Form 10-Q

Quarterly SEC report providing interim financial statements and disclosures.

Balance Sheet

Primary financial statement showing assets, liabilities, and stockholders’ equity at a point in time.

Income Statement

Primary financial statement showing revenues and expenses over a period, resulting in net income or loss.

Cash Flow Statement

Primary financial statement showing cash inflows and outflows from operating, investing, and financing activities.

Stockholders’ Equity

Part of the balance sheet representing owners’ claims after liabilities are subtracted; includes paid-in capital and retained earnings.

Comprehensive Income

Net income plus other comprehensive income items, providing a broader measure of financial performance.

Restated Financial Statements

Previously issued financial statements that have been corrected and reissued for errors or misstatements.