Accountancy

Accountancy

Industry: Financial services

Add a new term

Contributors in Accountancy

Become a Contributors

Accountancy

Demonstrably committed

Financial services; Accountancy

An entity is demonstrably committed to pay termination benefits when, and only when, an entity has a detailed formal plan for the termination and is without realistic possibility of withdrawal. The ...

Depreciable amount

Financial services; Accountancy

The cost of an asset, or other amount substituted for cost (in the financial statements), less its residual value.

Economic life

Financial services; Accountancy

Either: (a) the period over which an asset is expected to be economically usable by one or more users; or (b) the number of production or similar units expected to be obtained from the asset by one ...

Effective interest rate

Financial services; Accountancy

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of ...

Effective interest method

Financial services; Accountancy

A method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest ...

Embedded derivative

Financial services; Accountancy

A component of a hybrid (combined) instrument that also includes a non-derivative host contract—with the effect that some of the cash flows of the combined instrument vary in a way similar to a ...

FIFO (first-in, first-out)

Financial services; Accountancy

The assumption that the items of inventory that were purchased or produced first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently ...