Search results
Results from the WOW.Com Content Network
Consistency principle: The company uses the same accounting principles and methods from period to period. Conservatism principle : When choosing between two solutions, the one which has the less favorable outcome is the solution which should be chosen (see convention of conservatism )
CVP analysis employs the same basic assumptions as in breakeven analysis. The assumptions underlying CVP analysis are: The behavior of both costs and revenues is linear throughout the relevant range of activity. (This assumption precludes the concept of volume discounts on either purchased materials or sales.)
Historical Cost Accounting, i.e., financial capital maintenance in nominal monetary units, is based on the stable measuring unit assumption under which accountants simply assume that money, the monetary unit of measure, is perfectly stable in real value for the purpose of measuring (1) monetary items not inflation-indexed daily in terms of the ...
A going concern is an accounting term for a business that is assumed will meet its financial obligations when they become due. It functions without the threat of liquidation for the foreseeable future, which is usually regarded as at least the next 12 months or the specified accounting period (the longer of the two).
Throughput accounting (TA) is a principle-based and simplified management accounting approach that provides managers with decision support information for enterprise profitability improvement. This approach identifies the factors which limit an organization's ability to reach its goals, and then focuses on simple measures that drive behavior in ...
This is a list of the International Financial Reporting Standards (IFRSs) and official interpretations, as set out by the IFRS Foundation.It includes accounting standards either developed or adopted by the International Accounting Standards Board (IASB), the standard-setting body of the IFRS Foundation.
t is the time period; n is the number of time periods to "maturity" or exit; g is the sustainable growth rate at that point; In general, "Value of firm" represents the firm's enterprise value (i.e. its market value as distinct from market price); for corporate finance valuations, this represents the project's net present value or NPV.
Accounts balances as of period end Existence — assets, liabilities and equity balances exist. Rights and Obligations — the entity legally controls rights to its assets and its liabilities faithfully represent its obligations.