![]() |
|
Financial Terms | |
Translation exposure |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: payroll, tax advisor, accounting, inventory control, money, business, finance, stock trading, |
Definition of Translation exposureTranslation exposureRisk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.
Related Terms:Transaction exposureRisk to a firm with known future cash flows in a foreign currency that arises from Accounting exposureThe change in the value of a firm's foreign currency denominated accounts due to a Balance sheet exposureSee:accounting exposure. Cumulative Translation Adjustment (CTA) accountAn entry in a translated balance sheet in which gains Economic exposureThe extent to which the value of the firm will change because of an exchange rate change. Exposure nettingOffsetting exposures in one currency with exposures in the same or another currency, Foreign currency translationThe process of restating foreign currency accounts of subsidiaries into the ![]() Operating exposureDegree to which exchange rate changes, in combination with price changes, will alter a 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 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. 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. Aggressive AccountingA forceful and intentional choice and application of accounting principles Average accounting returnThe average project earnings after taxes and depreciation divided by the average Cash accountingA method of accounting in which profit is calculated as the difference between income Cash transactionA transaction where exchange is immediate, as contrasted to a forward contract, which 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 Constant dollar accountingA method for restating financial statements by reducing or Contract AccountingMethod of accounting for sales or service agreements where completion 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 of a Change in Accounting PrincipleThe change in earnings of previous years Cumulative Effect of Accounting ChangeThe change in earnings of previous years assuming double-entry accountingSee accrual-basis accounting. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. financial accountinga discipline in which historical, monetary Gain-on-Sale AccountingUp-front gain recognized from the securitization and sale of a pool Generally Accepted Accounting Principals (GAAP)A technical accounting term that encompasses the Generally accepted accounting principlesThe rules that accountants follow when processing accounting transactions and creating financial reports. The rules are primarily generally accepted accounting principles (GAAP)This important term generally accepted accounting principles (GAAP)Procedures for preparing financial statements. Generally Accepted Accounting Principles (GAAP)A common set of standards and procedures Generally Accepted Accounting Principles (GAAP)GAAP is the term used to describe the underlying rules basis on which financial statements are normally prepared. This is codified in the Handbook of The Canadian Institute of Chartered Accountants. Going-private transactionsPublicly owned stock in a firm is replaced with complete equity ownership by a Highly leveraged transaction (HLT)Bank loan to a highly leveraged firm. Intercompany transactiontransaction carried out between two units of the same corporation. internal accounting controlsRefers to forms used and procedures Management accountingThe production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved. management accountinga discipline that includes almost Management Accounting Guidelines (MAGs)pronouncements of the Society of Management Accountants of Picking transactionWithdrawing parts or subassemblies from stock in order to Purchase accountingMethod of accounting for a merger in which the acquirer is treated as having purchased Realizable Revenue A revenue transaction where assets received in exchange for goods andservices are readily convertible into known amounts of cash or claims to cash. Regulatory accounting proceduresaccounting principals required by the FHLB that allow S&Ls to elect responsibility accounting systeman accounting information system for successively higher-level managers about the performance of segments or subunits under the control Round-trip transactions costsCosts of completing a transaction, including commissions, market impact Staff Accounting Bulletin (SAB)Interpretations and practices followed by the staff of the Office of the Chief Accountant and the Division of Corporation Finance in administering the disclosure Statement of Financial Accounting Standards No. 52This is the currency translation standard currently Statement of Financial Accounting Standards No. 8This is a currency translation standard previously in Statement on Management Accounting (SMA)a pronouncement developed and issued by the Management Strategic management accountingThe provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds). Structured arbitrage transactionA self-funding, self-hedged series of transactions that usually utilize Taxable transactionAny transaction that is not tax-free to the parties involved, such as a taxable acquisition. TransactionThe financial description of a business event. TransactionA business event that has a monetary impact on an entity’s financial statements, Transaction demand (for money)The need to accommodate a firm's expected cash transactions. Transaction loanA loan extended by a bank for a specific purpose. In contrast, lines of credit and revolving Transactions costsThe time, effort, and money necessary, including such things as commission fees and the Transactions motiveA desire to hold cash for the purpose of conducting cash based transactions. 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. Emerging Issues Task Force (EITF)A special committee of the Financial accounting Standards Board established to reach consensus of how to account for new and unusual financial transactions that have the potential for creating differing financial reporting practices. Emerging Issues Task Force (EITF)A separate committee within the Financial accounting Standards Board composed of 13 members representing CPA firms and preparers of financial statements EntryThe act of recording an accounting transaction in the accounting books. Journal entryThe formal accounting entry used to identify a business transaction. The JournalizingThe process of taking a transaction and putting it into a form that allows it to be recorded in the accounting records. LedgerA book or database in which accounting transactions are stored and summarized. LossAn excess of expenses over revenues, either for a single business transaction or in Premature RevenueRevenue recognized for a confirmed sale or service transaction in a period RecognitionThe act of verifying the existence of a business transaction by recording it Source documentThe document that records a transaction and forms the basis for recording in a business’s Subsidiary ledgerAn accounting record giving the detailed transactions in an account; the subtotals of the debits and credits are posted to the control account maintained in the general ledger. It helps to keep the general ledger free of clutter. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |