Flashcards
Definitions - Chapter 1
Flashcards do conjunto (23)
- 1PAEPublicly Accountable Enterprise; a company that either:
1. has securities (debt, equity, both) issued to the public (or in the process of issuing) 2.a for-profit, private enterprise holding assets in a fiduciary capacity as a primary business - 2Fiduciary EnterpriseAny org that acts in a trusteeship capacity for members of the public. Ex. investment funds, mutual funds, privately-owned banks
- 3Functional CurrencyCurrency in which most of a company's transactions are conducted
- 4Presentation CurrencyCurrency in which financial statements are presented
- 5Private EnterpriseNeither issues debt or equity securities to the public, nor is in the process of doing so. Also does not hold assets in a fiduciary capacity as a primary business.
- 6SMESmall and Medium-sized Enterprises. A way a private company is often referred to.
- 7Private PlacementsA way for private enterprises to obtain substantial capital. Arranged via direct negotiation with one or more suppliers of capital (pension funds, investment funds, major banks)
- 8DBADisclosed Basis of Accounting is when non-GAAP accounting policies are used. Use is normally included in an accounting policy note.
- 9CovenantLoan requirement. Also called maintenance tests.
- 10General Purpose Financial ReportingFinancial reporting for the general public; potential interest group is large and diverse
- 11Control BlockGroup of voting shares that gives control to a small group of shareholders
- 12Restricted SharesShares with limited voting power
- 13External UsersAll non-management users of financial statements including: investors, creditors, employees
- 14PreparersManagers who make decisions in the three judgemental aspects of applying accounting standards. Manager = preparer.
- 15High-Quality EarningsWhen there is a high correlation between the operating cash flow per share and the earnings per share
- 16Low-Quality EarningsWhen operating cash flow per share and earnings per share differ significantly
- 17Income Tax DeferralA common objective of private companies
- 18Shareholder's AgreementsIn private companies they contain provisions that affect the valuation of shares if a shareholder decides to sell.
- 19Stewardship ReportingFocuses on showing the financial statement reader how the resources entrusted to management's care were managed.
- 20Big BathIf there will be an operating loss anyway, a company may load as many other losses into the year as possible. Maximizing loss to in a single year as part of a long-run strategy to maximize earnings.
- 21Minimum ComplianceMotivation of managers to reveal as little as possible while still complying with GAAP.
- 22Expanded DisclosureOpposite of minimum compliance. Disclosing a great deal of info not required by GAAP.
- 23Convergence ProjectA project to eliminate the differences between FASB and ISAB.
Informações
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- COMM 321 - Corporate Accounting FlashCards sobre Definitions - Chapter 1, criado por Kelsey Topola em 08-05-2017.
- Criado por
- Kelsey Topola
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