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Substance over form is an accounting principle used "to ensure that financial statements give a complete, relevant, and accurate picture of transactions and events". If an entity practices the 'substance over form' concept, then the financial statements will convey the overall financial reality of the entity (economic substance), rather than simply reporting the legal record of transactions ...
Transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort taxable income, tax authorities in many countries can adjust intragroup transfer prices that differ from what would have been ...
For example, if a transaction occurs on a Friday, the payment or check must arrive at the broker's office by the close of business on Monday, unless a public holiday delays the settlement day. [ 15 ] The rationale for the delayed settlement is to give time for the seller to get documents to the settlement and for the purchaser to clear the ...
An automated clearing house (ACH) is a computer-based electronic network for processing transactions, [ 1 ] usually domestic low value payments, between participating financial institutions. It may support both credit transfers and direct debits. [ 2 ][ 3 ] The ACH system is designed to process batches of payments containing numerous ...
t. e. In accounting, reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. It is a general practice for businesses to create their balance sheet at the end of the financial year as it denotes the state of finances for that period. Reconciliation is used to ensure that the ...
Debits and credits occur simultaneously in every financial transaction in double-entry bookkeeping. In the accounting equation, Assets = Liabilities + Equity, so, if an asset account increases (a debit (left)), then either another asset account must decrease (a credit (right)), or a liability or equity account must increase (a credit (right)).
Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. Technical standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements.
Cash is the true competition of electronic payment systems. According to a study by Intuition, commissioned by Visa Asia-Pacific, cash still accounts for 80% of all transactions in the region. This is in contrast to the situation in the United States where debit transactions outnumber cash purchases with the former accounting for 35% of total buy.