Tracking Financial Performance Standards of ... - Sa-Dhan

Glossary of Financial TermsTermComparative FinancialStatementCompliance AuditCompound Interest PrinciplesComposite-Rate DepreciationMethodComprehensive IncomeConservatismConsistencyConsistencyConsolidated FinancialStatementsConsolidated StatementContingent LiabilityContinuing OperationsCo-Operative:Correcting EntryDefinitionFinancial Statement presentation in which the current amounts andthe corresponding amounts for previous periods or dates also are shown. Aside-by-side comparison of a company's financial statements for two or moreaccounting periods.Review of financial records to determine whether the entity is complying withspecific procedures or rules.Interest computed on principal plus interest earned in previous periods.A method of depreciation based on the use of a single rate that applies toentire groups of assets.Change in equity of a business enterprise during a period from transactionsand other events and circumstances from sources not shown in the incomestatement. The period includes all changes in equity except those resultingfrom investments by owners and distributions to owners.An investment strategy aimed at long-term capital appreciation with low risk;moderate; cautious; opposite of aggressive behavior; show possible losses butwait for actual profits. Concept which directs the least favorable effect on netincome.Accounting postulate which stipulates that, except as otherwise noted in theFinancial Statement, the same accounting policies and procedures have beenfollowed from period to period by an organization in the preparation andpresentation of its financial statements.The accounting principle that requires a firm to continue to use a methodonce chosen, rather than switch from method to method arbitrarily or fortemporary advantage. The concept that assumes that the same generallyaccepted accounting principles have been applied in the preparation ofsuccessive financial statements.Combined Financial Statements of a parent company and one ormore of its subsidiaries as one economic unit.A financial statement resulting from combining parent and subsidiary companystatements.Potential liability arising from a past transaction or a subsequent event. Apossible liability, such as on a discounted note of a customer, that may becomea real liability if certain events occur. A potential obligation that will materializeonly if certain events occur in the future.Portion of a business entity expected to remain active.A co-operative, as defined by the International Labour Organization is anassociation of persons, usually of limited means, who have voluntarily joinedtogether to achieve a common economic end through the formation of ademocratically controlled business organization, making equitablecontributions to the capital required and accepting a fair share of the risks andbenefits of the undertaking [UN-ESCAP (1991)].An entry used to correct certain types of errors in the ledger.119