IAS 10 - Events After the Reporting Period
IAS 10 addresses events after the reporting period and distinguishes adjusting events (affecting figures) from non-adjusting events (disclosed if material).
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Accounting and Finance Terms Explained
Explore accounting, finance, auditing, taxation, and economics terms explained in clear English. Each entry provides a definition, a detailed explanation, practical uses, and examples where available.
Use the search box below to find a term by its name, definition, application, or related financial concept.
IAS 11 - Construction Contracts
IAS 11 (superseded mainly by IFRS 15) addressed revenue and cost recognition for construction contracts over time, commonly applying percentage-of-completion based on reliable outcome measurement.
OpenIAS 12 - Income Taxes
IAS 12 explains accounting for current and deferred income taxes. Deferred tax arises from temporary differences and is measured based on expected tax rates when differences reverse.
OpenIAS 16 - Property, Plant and Equipment
IAS 16 covers recognition and subsequent measurement of property, plant and equipment, including depreciation, component accounting, derecognition, and choice between cost and revaluation models.
OpenIAS 17 - Leases
IAS 17 classified leases as finance or operating for lessees and lessors. It has largely been replaced by IFRS 16, but remains relevant for historical comparison and older periods.
OpenIAS 18 - Revenue
IAS 18 (replaced by IFRS 15) provided principles for recognizing revenue from goods, services, and use of assets (interest, royalties, dividends), and helps in understanding legacy revenue concepts.
OpenIAS 19 - Employee Benefits
IAS 19 specifies accounting for employee benefits, including short-term benefits, termination benefits, and post-employment defined benefit plans using actuarial assumptions and measurements.
OpenIAS 2 - Inventories
IAS 2 requires inventories to be measured at the lower of cost and net realizable value, and explains which costs are included and acceptable cost formulas such as FIFO or weighted average.
OpenIAS 20 - Government Grants
IAS 20 covers recognition and presentation of government grants and disclosure of government assistance, recognizing grants when there is reasonable assurance of compliance and receipt.
OpenIAS 21 - Effects of Changes in Foreign Exchange Rates
IAS 21 covers accounting for foreign currency transactions and translating foreign operations, and explains the difference between functional currency and presentation currency.
OpenIAS 23 - Borrowing Costs
IAS 23 requires capitalizing borrowing costs directly attributable to acquiring/constructing a qualifying asset, while other borrowing costs are expensed as incurred.
OpenIAS 24 - Related Party Disclosures
IAS 24 requires disclosure of related party relationships, transactions, and balances to enhance transparency and help users assess potential conflicts of interest.
OpenIAS 26 - Accounting and Reporting by Retirement Benefit Plans
IAS 26 provides reporting requirements for retirement benefit plans themselves, distinguishing defined contribution and defined benefit plans and specifying required statements and disclosures.
OpenIAS 27 - Separate Financial Statements
IAS 27 deals with separate financial statements and how an entity accounts for investments in subsidiaries, joint ventures, and associates when not presenting consolidated statements.
OpenIAS 28 - Investments in Associates and Joint Ventures
IAS 28 requires the equity method for investments in associates and joint ventures, recognizing the investor’s share of profit or loss and other comprehensive income.
OpenIAS 29 - Financial Reporting in Hyperinflationary Economies
IAS 29 requires restating financial statements in hyperinflationary economies to preserve meaningful information, using a general price index and recognizing the net monetary position effect.
OpenIAS 32 - Financial Instruments: Presentation
IAS 32 sets principles to classify financial instruments as liabilities or equity and provides rules for offsetting financial assets and liabilities in the statement of financial position.
OpenIAS 33 - Earnings per Share
IAS 33 explains how to calculate and present basic and diluted EPS, ensuring comparability of performance across entities and periods.
OpenIAS 34 - Interim Financial Reporting
IAS 34 sets minimum content for interim financial reports and measurement principles to provide timely information between annual reporting dates.
OpenIAS 36 - Impairment of Assets
IAS 36 requires impairment assessment and recognizes losses when recoverable amount is below carrying amount, including cash-generating unit (CGU) testing and reversal rules where permitted.
OpenIAS 37 - Provisions, Contingent Liabilities and Contingent Assets
IAS 37 sets recognition and measurement for provisions, and distinguishes them from contingent liabilities/assets. A provision is recognized when there is a present obligation and reliable estimate.
OpenIAS 38 - Intangible Assets
IAS 38 governs intangible assets (e.g., software, patents, trademarks), including recognition criteria, measurement after recognition, useful life assessment, and amortization/impairment.
OpenIAS 39 - Financial Instruments: Recognition and Measurement
IAS 39 (largely replaced by IFRS 9) addressed recognition, derecognition, classification, and measurement of financial instruments and included hedge accounting rules under the previous model.
OpenIAS 40 - Investment Property
IAS 40 deals with investment property held to earn rentals or for capital appreciation, allowing either the cost model or fair value model with specific disclosures.
OpenIAS 41 - Agriculture
IAS 41 sets accounting for biological assets and agricultural produce, generally using fair value less costs to sell and recognizing changes in profit or loss.
OpenIAS 7 - Statement of Cash Flows
IAS 7 requires a statement of cash flows classifying cash movements into operating, investing, and financing activities to help assess liquidity and financial flexibility.
OpenIAS 8 - Accounting Policies, Changes in Estimates and Errors
IAS 8 explains selection and application of accounting policies and how to account for changes in estimates and correction of errors, including retrospective restatement where required.
OpenIASB International Accounting Standards Board
IASB is the independent standard-setting board of the IFRS Foundation that develops IFRS and issues guidance to improve global comparability of financial reporting.
OpenIFRS
IFRS are International Financial Reporting Standards issued by the IASB, providing principles-based guidance for recognition, measurement, presentation, and disclosure in financial statements.
OpenIFRS 1 - First-time Adoption of IFRS
IFRS 1 guides first-time adoption of IFRS, requiring an opening IFRS statement of financial position and largely retrospective application, with limited exemptions and exceptions.
OpenIFRS 10 - Consolidated Financial Statements
IFRS 10 explains when an investor controls an investee and must consolidate, based on power, exposure to variable returns, and ability to use power to affect returns.
OpenIFRS 11 - Joint Arrangements
IFRS 11 classifies joint arrangements into joint operations or joint ventures based on rights and obligations, determining whether line-by-line recognition or equity method applies.
OpenIFRS 12 - Disclosure of Interests in Other Entities
IFRS 12 requires detailed disclosures about interests in subsidiaries, joint arrangements, associates, and structured entities, enabling users to understand related risks and financial effects.
OpenIFRS 13 - Fair Value Measurement
IFRS 13 provides a single framework for fair value measurement, emphasizing market-based assumptions and requiring disclosures including the fair value hierarchy (Levels 1–3).
OpenIFRS 14 - Regulatory Deferral Accounts
IFRS 14 allows first-time adopters with rate-regulated activities to continue recognizing regulatory deferral account balances, with specified presentation and disclosure requirements.
OpenIFRS 15 - Revenue from Contracts with Customers
IFRS 15 provides a unified five-step model to recognize revenue based on transferring control of goods or services, focusing on performance obligations and transaction price allocation.
OpenIFRS 16 - Leases
IFRS 16 requires lessees to recognize right-of-use assets and lease liabilities for most leases, improving transparency versus operating lease off-balance sheet treatment.
OpenIFRS 17 - Insurance Contracts
IFRS 17 establishes a comprehensive model for measuring insurance contract obligations using future cash flows, discounting, and risk adjustment, improving comparability in insurance reporting.
OpenIFRS 2 - Share-based Payment
IFRS 2 addresses transactions where goods/services are received in exchange for equity instruments or liabilities linked to share value, specifying measurement and recognition rules.
OpenIFRS 3 - Business Combinations
IFRS 3 requires the acquisition method for business combinations: identify the acquirer, measure identifiable assets/liabilities at fair value, and recognize goodwill or bargain purchase gain.
OpenIFRS 4 - Insurance Contracts
IFRS 4 was an interim insurance standard allowing many existing practices before IFRS 17, but requiring key disclosures and liability adequacy testing.
OpenIFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
IFRS 5 sets criteria for classifying assets as held for sale and discontinued operations, and measures such assets at the lower of carrying amount and fair value less costs to sell.
OpenIFRS 6 - Exploration for and Evaluation of Mineral Resources
IFRS 6 addresses exploration and evaluation expenditures for mineral resources, permitting certain accounting policy choices but requiring impairment testing and disclosures.
OpenIFRS 7 - Financial Instruments: Disclosures
IFRS 7 focuses on disclosures about financial instruments, helping users evaluate their significance and the risks (credit, liquidity, market) and how the entity manages them.
OpenIFRS 8 - Operating Segments
IFRS 8 requires segment reporting based on internal reports reviewed by the chief operating decision maker, helping users understand performance and risks by business components.
OpenIFRS 9 - Financial Instruments
IFRS 9 sets the rules for classification and measurement of financial instruments, introduces the expected credit loss (ECL) impairment model, and updates hedge accounting to better reflect risk manag...
OpenIFRS Conceptual Framework
The IFRS Conceptual Framework describes the objective of financial reporting, qualitative characteristics, and definitions/recognition principles for elements like assets, liabilities, equity, income ...
OpenIMA
IMA is the Institute of Management Accountants, a professional body supporting management accounting and awarding the CMA credential through exams and experience requirements.
Openimpairment
Impairment occurs when an asset’s carrying amount exceeds its recoverable amount, requiring a write-down and recognition of an impairment loss in accordance with applicable standards.
OpenImpairment
Impairment is a reduction in an asset’s recoverable amount below its carrying amount, requiring a write-down and recognition of impairment loss.
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