8850614
Description
Flashcards by Kelsey Topola, updated more than 1 year ago
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Created by Kelsey Topola
over 7 years ago
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| Question | Answer |
| PAE | Publicly Accountable Enterprise; a company that either: 1. has securities (debt, equity, both) issued to the public (or in the process of issuing) 2.a for-profit, private enterprise holding assets in a fiduciary capacity as a primary business |
| Fiduciary Enterprise | Any org that acts in a trusteeship capacity for members of the public. Ex. investment funds, mutual funds, privately-owned banks |
| Functional Currency | Currency in which most of a company's transactions are conducted |
| Presentation Currency | Currency in which financial statements are presented |
| Private Enterprise | Neither issues debt or equity securities to the public, nor is in the process of doing so. Also does not hold assets in a fiduciary capacity as a primary business. |
| SME | Small and Medium-sized Enterprises. A way a private company is often referred to. |
| Private Placements | A way for private enterprises to obtain substantial capital. Arranged via direct negotiation with one or more suppliers of capital (pension funds, investment funds, major banks) |
| DBA | Disclosed Basis of Accounting is when non-GAAP accounting policies are used. Use is normally included in an accounting policy note. |
| Covenant | Loan requirement. Also called maintenance tests. |
| General Purpose Financial Reporting | Financial reporting for the general public; potential interest group is large and diverse |
| Control Block | Group of voting shares that gives control to a small group of shareholders |
| Restricted Shares | Shares with limited voting power |
| External Users | All non-management users of financial statements including: investors, creditors, employees |
| Preparers | Managers who make decisions in the three judgemental aspects of applying accounting standards. Manager = preparer. |
| High-Quality Earnings | When there is a high correlation between the operating cash flow per share and the earnings per share |
| Low-Quality Earnings | When operating cash flow per share and earnings per share differ significantly |
| Income Tax Deferral | A common objective of private companies |
| Shareholder's Agreements | In private companies they contain provisions that affect the valuation of shares if a shareholder decides to sell. |
| Stewardship Reporting | Focuses on showing the financial statement reader how the resources entrusted to management's care were managed. |
| Big Bath | If there will be an operating loss anyway, a company may load as many other losses into the year as possible. Maximizing loss to in a single year as part of a long-run strategy to maximize earnings. |
| Minimum Compliance | Motivation of managers to reveal as little as possible while still complying with GAAP. |
| Expanded Disclosure | Opposite of minimum compliance. Disclosing a great deal of info not required by GAAP. |
| Convergence Project | A project to eliminate the differences between FASB and ISAB. |
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