Financial Statements & Accounting
3 terms
Accrual Accounting
Financial Statements & Accounting
qualitative
The convention of recording revenue when it is earned and expenses when they are incurred, regardless of when cash moves.
Test: the transaction is recognised in the period in which the economic event occurs, not the period in which cash is received or paid
Amortisation
Financial Statements & Accounting
₹ crore
The systematic write-off of an intangible asset's cost over its useful life, the intangible equivalent of depreciation.
Annual Amortisation = Cost of Intangible Asset / Useful Life in Years
Auditor's Report
Financial Statements & Accounting
qualitative
The statutory auditor's formal opinion on whether the financial statements give a true and fair view in accordance with the applicable framework.
Test: the report states an unmodified, qualified, adverse or disclaimer opinion, together with any key audit matters and emphasis of matter