Glossary: Pre1 Financial Reporting Standards

TermDefinition
IASBInternational Accounting Standards Board; sets IFRS
FASBFinancial Accounting Standards Board; sets US GAAP
SECSecurities and Exchange Commission; enforces financial reporting for US public companies
IOSCOInternational Organization of Securities Commissions; promotes fair, efficient, transparent markets
IFRSInternational Financial Reporting Standards; principles-based global accounting standards
US GAAPUnited States Generally Accepted Accounting Principles; rules-based standards
Conceptual FrameworkFoundation of accounting standards defining objectives, qualitative characteristics, elements, and assumptions
RelevanceQualitative characteristic: information capable of making a difference in decisions
Faithful RepresentationQualitative characteristic: information is complete, neutral, and free from error
ComparabilityEnhancing characteristic: ability to compare across entities and time periods
VerifiabilityEnhancing characteristic: independent observers can reach consensus on representation
TimelinessEnhancing characteristic: information available to decision-makers before it loses relevance
UnderstandabilityEnhancing characteristic: information presented clearly and concisely
MaterialityInformation is material if omitting or misstating it could influence decisions
Going ConcernAssumption that the entity will continue operating for the foreseeable future
Accrual BasisTransactions recognized when they occur, not when cash is exchanged
Historical CostMeasurement basis: asset recorded at amount paid at acquisition
Fair ValueMeasurement basis: price received to sell an asset in an orderly transaction
Amortized CostMeasurement basis: initial amount adjusted for amortization of premium/discount
Current CostMeasurement basis: amount needed to acquire equivalent asset today