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Financial Terms | |
FASB No. 8 |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: stock trading, business, credit, financial advisor, accounting, inventory, inventory control, payroll, Also see related: condo, homebuyer, home insurance, insurance, property, homebuying, home buyer, real estate, homes, |
Definition of FASB No. 8FASB No. 8U.S. accounting standard that requires U.S. firms to translate their foreign affiliates' accounts by
Related Terms:AccountingA collection of systems and processes used to record, report and interpret business transactions. accountingA broad, all-inclusive term that refers to the methods and procedures Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. Accounting changeAn alteration in the accounting methodology or estimates used in Accounting earningsEarnings of a firm as reported on its income statement. Accounting entityA business for which a separate set of accounting records is being Accounting equationThe representation of the double-entry system of accounting such that assets are equal to liabilities plus capital. ![]() Accounting equationThe formula Assets = Liabilities + Equity. accounting equationAn equation that reflects the two-sided nature of a Accounting ErrorsUnintentional mistakes in financial statements. Accounted for by restating Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Accounting insolvencyTotal liabilities exceed total assets. A firm with a negative net worth is insolvent on Accounting IrregularitiesIntentional misstatements or omissions of amounts or disclosures in Accounting liquidityThe ease and quickness with which assets can be converted to cash. Accounting periodThe period of time for which financial statements are produced – see also financial year. Accounting PoliciesThe principles, bases, conventions, rules and procedures adopted by management in preparing and presenting financial statements. ![]() Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually accounts payable involves the receipt of an invoice from the company providing the services or goods. accounts payableShort-term, non-interest-bearing liabilities of a business Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance ![]() Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual Accrual accountingThe recording of revenue when earned and expenses when accrual-basis accountingWell, frankly, accrual is not a good descriptive Accruals accountingA method of accounting in which profit is calculated as the difference between income when it is earned and expenses when they are incurred. Accrued Incomeincome that has been earned but not yet received. For instance, if you have a non-registered Guaranteed Investment Certificate (GIC), Mutual Fund or Segregated Equity Fund, growth accrues annually or semi-annually and is taxable annually even though the gain is only paid at maturity of your investment. Accumulated Other Comprehensive IncomeCumulative Gains or losses reported in shareholders' Adjusted Income from ContinuingOperations reported income from continuing operations Aggressive AccountingA forceful and intentional choice and application of accounting principles algebraic methoda process of service department cost allocation Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. Antidilutive effectResult of a transaction that increases earnings per common share (e.g. by decreasing the Asian currency units (ACUs)Dollar deposits held in Singapore or other Asian centers. Average accounting returnThe average project earnings after taxes and depreciation divided by the average Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Balance of Payments AccountsA statement of a country's transactions with other countries. Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off Blocked currencyA currency that is not freely convertible to other currencies due to exchange controls. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial Book IncomePretax income reported on the income statement. Bootstrapping, bootstrap methodAn arithmetic method for backing an Calendar effectThe tendency of stocks to perform differently at different times, including such anomalies as Capital gains yieldThe price change portion of a stock's return. Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Cash accountingA method of accounting in which profit is calculated as the difference between income Cash Flow–to–Income Ratio (CFI)Adjusted cash flow provided by continuing operations Change in Accounting EstimateA change in accounting that occurs as the result of new information Change in Accounting EstimateA change in the implementation of an existing accounting Change in Accounting PrincipleA change from one generally accepted accounting principle to another generally accepted accounting principle—for example, a change from capitalizing expenditures Chart of accountsA listing of all accounts used in the general ledger, usually sorted in Clientele effectThe grouping of investors who have a preference that the firm follow a particular financing Coinsurance effectRefers to the fact that the merger of two firms decreases the probability of default on Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance Presentation standards Implementation common-size income statementincome statement that presents items as a percentage of revenues. Completed-Contract MethodA contract accounting method that recognizes contract revenue concurrent engineeringsee simultaneous engineering Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Constant dollar accountingA method for restating financial statements by reducing or Contract Accountingmethod of accounting for sales or service agreements where completion Contract Work Hours and Safety Standards ActA federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned cost accountinga discipline that focuses on techniques or Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting Creative Accounting PracticesAny and all steps used to play the financial numbers game, including Creative Acquisition AccountingThe allocation to expense of a greater portion of the price Cumulative-Effect AdjustmentThe cumulative, after-tax, prior-year effect of a change in accounting Cumulative Effect of a Change in Accounting PrincipleThe change in earnings of previous years Cumulative Effect of Accounting ChangeThe change in earnings of previous years assuming CurrencyMoney. Currency arbitrageTaking advantage of divergences in exchange rates in different money markets by Currency basketThe value of a portfolio of specific amounts of individual currencies, used as the basis for Currency futureA financial future contract for the delivery of a specified foreign currency. Currency optionAn option to buy or sell a foreign currency. Currency riskRelated: Exchange rate risk Currency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with Currency selectionAsset allocation in which the investor chooses among investments denominated in Currency swapAn agreement to swap a series of specified payment obligations denominated in one currency Current accountNet flow of goods, services, and unilateral transactions (gifts) between countries. Current AccountThat part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid. Current assetTypically the cash, accounts receivable, and inventory accounts on the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |