Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Entities
and
Statements
Financial
Reporting
Glossary
Annual report
A document which contains the financial statements (with related notes) along with
reports from management explaining what they are doing and what they plan to do.
The supporting reports provided by management typically include the operating and
financial review, the directors report, the chairmans statement and the corporate
social responsibility report. They also provide information on how they govern
themselves in a corporate governance report and remuneration report.
Appropriation account
An account which is used to apportion the profit or loss for the period between the
partners in a business.
Available-for-sale assets
Investments that are denominated in money, or in paper (such as shares and
bonds), which the entity holds for financial gain and which will be sold by the entity in
the future.
Balance sheet
The UK equivalent of the statement of financial position. It contains details of an
entitys assets, liabilities and capital.
Comparatives
Term used to describe prior year figures that are included in the financial statements
so that current year results can be easily compared to the previous years figures.
Comprehensive income statement
Statement detailing the total performance of an entity in a specified period. The
performance includes realised income and expenditure and unrealised income
(holding gains).
Corporation tax
Tax on a companys income.
Cost of services
Expenses that are directly related to the service that is being sold by the business.
For example, it would include the wages paid to trainee accountants and
accountants in an accountancy firm, but not the wages of administrative staff or
cleaners as their cost is not directly related to the service.
Current assets
Assets that the entity expects to turn to cash within one year (and cash itself).
Current liabilities
Liabilities that an entity expects to pay within one year.
Equity
The owners investment in the entity.
Equity holder
Another name for owner/proprietor.
Expenses
Yearly running costs. They are otherwise known as revenue costs.
Financial statements
A collective term to describe the comprehensive income statement, the statement of
financial position, the cash flow statement and the related notes.
Fixed assets
Non-current assets under UK financial reporting standards are called fixed assets.
They are assets that the entity expects to use for periods that extend beyond one
year.
Intangible assets
Cannot be seen or touched, but have value. They help the entity to generate
income. Examples include intellectual capital, knowledge and reputation.
Inventory
Goods that have been purchased for resale, but are not yet sold. The UK financial
reporting standards refer to inventory as stock.
Investments in associates
Investments in paper shares, however, the intention is to retain this investment as
part of the entitys normal activities.
Liabilities
Obligations that the entity has to meet in the future
Limited liability
Owners liability for the debts of the entity is restricted to their investment in the
company (represented by monies paid for shares held) if it fails.
Listed entities
Entities that are listed as members of a stock exchange which offers its members a
platform to buy and sell their shares.
Long-term liabilities
Non-current liabilities under UK financial reporting standards are called long-term
liabilities. These are liabilities that the entity expects to pay in periods that extend
beyond one year.
Minority interests
People/entities who own a small proportion of the shares in a plc are called minority
interests. They are otherwise known as non-controlling interests.
Non-controlling interests
People/entities who own a small proportion of the shares in a plc are called noncontrolling interests. They are otherwise known as minority interests.
Non-current assets
Assets that the entity expects to use for periods that extend beyond one year.
Non-current liabilities
Liabilities that the entity expects to pay in periods that extend beyond one year.
Revenue
Income earned in the period from normal trading activities
Sole trader
Name for a business which is owned and run privately by an Individual who gets all
the profits, or suffers all the losses.
Statement of cash flows
Shows the source and use of cash in the period
Statement of changes in equity
Provides information on the movements within the equity accounts in the period.
Statement of financial position
Provides information on the financial position of an entity. It typically contains details
of the entitys assets, liabilities and equity capital.
Stewardship accounting
Term to describe a form of accounting which focuses on keeping a count of items. It
was the earliest form of accounting and typically involved keeping a record of the
assets and liabilities of an entity.
Stewardship is the accountability of an enterprises management for the resources
entrusted to them.
Tangible assets
Assets that can be seen and touched (they are tangible in nature), for example a car,
a house, or a desk.
Tangible fixed assets
UK terminology for property, plant and equipment. It includes land and buildings,
plant and machinery and fixtures, fittings, tools and equipment.
Total comprehensive income
The total of the net income from revenue generating activities plus net revenue from
other activities, such as holding gains (increases in the values of assets held)
Trade creditors
Trade payables under UK financial reporting standards are called trade creditors.
They are amounts owed to a supplier who provided goods on credit.
Trade debtors
Trade receivables under UK financial reporting standards are called trade debtors.
Trade receivables are amounts owed from a customer for credit sales (the goods
were given in advance of the entity receiving money for the goods).
Trade payable
Amounts owed to a supplier who provided goods on credit
Trade receivable
Amounts owed from a customer for credit sales (the goods were given in advance of
the entity receiving money for the goods).
Unincorporated entities
Not established/registered as separate legal entities in law.