English For Accounting Task 3

Balance Sheet is a part of financial reporting that summarizes a company’s assets, liabilities, and shareholder’s equity at a specific point in time.

Statement of Cash Flows is a part of financial reporting from a corporation or business partnership that shows how changes in balance sheet accounts and income affect cast and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

Statement of Earnings is a document which shows how much a person or a company earned during a set period.

Management Accounts is a set of summarized accounting data prepared and presented specifically for a firm’s management.

Investments is the purchase of a financial product or other item of value with an expectation of favorable future returns; the use money in the hope of making more money in the future.

Statement of Shareholders’ Equity is the financial statement that details changes to the equity portion of the balance sheet , including retained earnings, common and preferred shares (as well as treasury stock), and other comprehensive income.

Statement of Financial Position is a journal that shows the financial position of an entity at a given date and show of three main components: assets, liabilities & equity.

Notes are additional information added to the end of financial statements, and it will help explain specific items in the financial statements as well as provide a more comprehensive assessment of a company’s financial condition.

Annual Report is a financial report from the company that is done once a year.

Budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.

Market Capitalization is one of the business term, that refer to the all price from the company’s share, that is a price which need to pay someone to buy all of the company.

Discounted Cash Flows is a method of valuing a project, company, or asset using the concepts of the time value of money.

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English For Accounting Task 1

GAAP (Generally Accepted Accounting Principles) is a principles that use for many accounting company for summarize or recording for their financial statement. GAAP not only use in United States, but today GAAP is going worldwide to become the most famous principles that accepted and used all over the world. GAAP have the four basic principles, such as the going concern principle, the prudence principle, the matching principle & the consistency principle.

            International Accounting Standards (IAS) is the former name of International Financial Reporting Standards (IFRS) that were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On April 1, 2011 IASC is setting the new concept of IAS. They combine existing IAS and Standing Interpretations Committee standards (SICs). After that, The IASC continued to make the new standards that call International Financial Reporting Standards (IFRS) which used till now.

            International Financial Reporting Standards (IFRS) or the new standards that published by IASC. This standard consist of 3 basic accounting models, such as Current Cost Accounting, Financial capital maintenance in nominal monetary units & Financial capital maintenance in units of constant purchasing power. The IFRS have many parts that can summarize many financial transactions in a firm or company. Even, the local university in Asia & Europe adopted this standard to their curriculum for Accounting department.

            Now IFRS are used in many countries in the world, including the European Union, India, Hong Kong, Australia, Malaysia, Pakistan, Russia, South Africa, Singapore & Turkey. As the reports, there are 113 countries all over the world that use IFRS for their Financial Statement Standards. As the result for the International public interest, the investor and other users of financial statement can have a lot of benefits for use this standard. They are not only having a financial advantage for using this standard but also have a relationship advantage to using this standard. They can interact with another investor all around the world with one same perception behind the two of them.

            International Accounting Standards Committee (IASC) was the former of International Accounting Standards Board which replace IASC on April 1, 2011. The IASC was founded in June 1973 as a result from the International agreement between accountancy bodies in the following countries, such as Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom, Ireland & United States. Until now IASC had about 140 member bodies from 104 countries.

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