Topic

Financial reporting

Financial statements, management reports and the accounting concepts behind the numbers on them.

Glossary

The terms you will meet.

Financial reporting Accrual Accounting Recording revenue when you earn it and expenses when you incur them - not when cash moves. The accounting standard every Indian company must follow. Also called accrual basis of accounting, accrual method, mercantile system of accounting Financial reporting Amortization Spreading the cost of intangible assets (patents, software, licences) over the years they generate value - depreciation's less-talked-about sibling. Also called amortisation Financial reporting Asset Depreciation Writing down the value of machines, vehicles, and buildings over their useful life - with two different rule books for accounting and tax. Also called depreciation, fixed asset depreciation, depreciation of assets Financial reporting Balance Sheet A financial statement that presents a company's total assets, liabilities, and shareholders' equity at a specific point in time. Also called statement of financial position, statement of assets and liabilities Audit and controls Financial Audit An independent examination of a company's financial statements to provide assurance on their accuracy and true and fair view. Also called statutory audit, audit of financial statements, external audit Due dates and calendars Financial Year (FY) The 12-month accounting period from April 1 to March 31 used for tax filings, financial reporting, and statutory compliance in India. Also called accounting year, tax year Financial reporting Fiscal Year The 12-month accounting period used by governments and businesses in India, running from April 1 to March 31. Also called fiscal period, budget year