IFRS for SMEs / IFRS for SMEs glossary

IFRS for SMEs glossary

Accounting policies

The principles and practices an entity applies in preparing and presenting its financial statements.

Carrying amount

The amount at which an asset or liability is recognised in the statement of financial position.

Compilation engagement

An engagement in which a professional accountant assists management to prepare financial statements without expressing assurance on them.

Current asset

An asset expected to be realised within twelve months of the reporting date or in the normal operating cycle.

Fair value

The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants.

Going concern

The assumption that the entity will continue to operate for the foreseeable future.

Independent review

An engagement that gives limited assurance on financial statements, based mainly on enquiry and analytical procedures.

Key management personnel

The people with authority and responsibility for planning, directing and controlling the entity's activities, including the directors.

Performance obligation

A promise in a contract to transfer a distinct good or service to a customer.

Public accountability

Having debt or equity traded in a public market, or holding assets in a fiduciary capacity for a broad group of outsiders as a primary business.

Public Interest Score

The South African score under the Companies Regulations that decides a company's financial reporting framework and the assurance its statements need.

Related party

A person or entity closely connected to the reporting entity, such as a director, shareholder or entity under common control.

Reporting date

The end of the latest period covered by the financial statements.