IFRS: related pages

Auditors' opinion

The auditor's opinion on the whether a company's accounts give a true view of its finances.

Audit

The independent checking of a company's accounts by external accounts.

Amortisation

Amortisation is the equivalent of depreciation for intangible assets.

Exceptional items

Unusual costs or revenues whose exclusion from profits better shows underlying performance.

Fair value

The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.

GAAP

A set of rules, accounting principles and standards that are used in a particular region or country. Mostly being converged with IFRSs.

Impairment

The cost shown in the profit and loss account as the result of a fall in the value of an asset.

Pre-exceptional

A description of a number given before exceptional items; adjusted by adding back exceptional costs and subtracting exceptional profits.

Purchase method

Requires that the buyer must be identified, and therefore goodwill created, in accounting for mergers and acquisitions.