Principles of Accounting and Taxation glossary

Recognises transactions when they occur, not when cash changes hands.

Taught in Introduction to accounting

Treats the business as separate from its owner(s) for accounting purposes.

Taught in Introduction to accounting

Applies the same accounting treatment from one period to the next, so results are comparable.

Taught in Introduction to accounting

Need to assess the entity's ability to repay what it owes.

Taught in Introduction to accounting

Need assurance of the entity's stability, particularly for a long-term trading relationship.

Taught in Introduction to accounting

Every transaction has two effects, the basis of double-entry bookkeeping (see the chapter on accounting procedures).

Taught in Introduction to accounting

Need information on job security and the employer's ability to pay wages and benefits.

Taught in Introduction to accounting

Assumes the entity will continue operating for the foreseeable future, unless there is evidence otherwise.

Taught in Introduction to accounting

Need information to assess tax liability and monitor compliance (see the taxation chapters).

Taught in Introduction to accounting

Records assets at their original cost, not current market value, unless a standard requires otherwise.

Taught in Introduction to accounting

The International Accounting Education Standards Board, which sets the education and competence requirements for the accounting profession globally.

Taught in Introduction to accounting

The IASB's predecessor body's standards, many still in force alongside newer IFRS, together forming the same body of standards.

Taught in Introduction to accounting

The International Accounting Standards Board, which issues IFRS.

Taught in Introduction to accounting

The Institute of Certified Public Accountants of Kenya, the professional body regulating accountants in Kenya and enforcing professional and ethical standards.

Taught in Introduction to accounting

Set by the IASB; govern how private-sector entities recognise, measure and present transactions, so financial statements are comparable across entities and borders.

Taught in Introduction to accounting

Need information to assess risk and return, and to hold management accountable.

Taught in Introduction to accounting

Set by the IPSASB specifically for government and public-sector entities (see public sector accounting in the chapter on not-for-profit organisations), adapting private-sector principles to a non-profit, budget-driven context.

Taught in Introduction to accounting

The International Public Sector Accounting Standards Board, which issues IPSAS.

Taught in Introduction to accounting

Needs detailed, timely information to plan, control and make operating decisions.

Taught in Introduction to accounting

Matches expenses to the revenue they helped generate, in the same period.

Taught in Introduction to accounting

Includes only information significant enough to influence a user's decisions.

Taught in Introduction to accounting

Records only transactions expressible in monetary terms.

Taught in Introduction to accounting

Exercises caution, not overstating assets or income, nor understating liabilities or expenses.

Taught in Introduction to accounting

Kenya's statute governing company formation, share capital and the preparation and filing of financial statements (see the chapter on simple company accounts), of direct relevance to a company secretary's own duties.

Taught in Introduction to accounting

Has an interest in an entity's contribution to the economy and community, especially a large or public-sector one.

Taught in Introduction to accounting