Accounting Interpretation

Filed Under »
Dictionary Says

Definition of 'Accounting Interpretation'

A statement clarifying how accounting standards should be applied. Accounting interpretations are issued by accounting standards groups, such as the Financial Accounting Standards Board (FASB), American Institute of CPAs (AICPA) or International Accounting Standards Board (IASB). Interpretations are generally not requirements, but rather outline best practices and give further explanation. By contrast, accountants are required to follow the accounting standards that are in place.
Investopedia Says

Investopedia explains 'Accounting Interpretation'

As financial transactions continue to evolve, new situations develop that may not have been foreseen by the existing accounting standards. In this case, accounting boards may choose to issue an interpretation outlining the recommended practices for accounting as questions arise. If new changes are particularly significant, the standards themselves may be adjusted so that compliance is required.
Search results for

'Accounting Interpretation'

  • Footnotes: Early Warning Signs For Investors

    http://www.investopedia.com/articles/analyst/03/101503.asp
    ... In January 2003, the FASB issued FIN 46, Consolidation of Variable Interest Entities
    and an Interpretation of Accounting Research Bulletin No. 51. ...

  • Financial Statements: Who's In Charge? | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements1.asp
    ... the framework is general, it requires interpretation, and often re-interpretation,
    in light of ... is a growing pile of literally hundreds of accounting standards. ...

  • Earnings Quality: Adjusting Accruals For Proper Comparisons ...

    http://www.investopedia.com/university/accounting-earnings-quality/earnings6.asp
    ... The accounting variables for each firm would be similar to the following ... Thus,
    interpretation of the life-cycle score regarding total net accrual amounts ...

  • 12 Things You Need To Know About Financial Statements

    http://www.investopedia.com/articles/basics/06/financialreporting.asp
    ... The meaningful interpretation and analysis of balance sheets, income statements
    and cash flow ... 6. Accounting Is an Art, Not a Science The presentation of a ...

  • Getting Accredited For A Career In Credit Analysis

    http://www.investopedia.com/articles/financialcareers/11/introduction-to-credit-analysis-certifications.asp
    ... covers business law, credit law, financial statement interpretation and credit ... of
    professional experience and expert knowledge in accounting, finance, domestic ...

  • Financial Statement Manipulation An Ever-Present Problem For ...

    http://www.investopedia.com/articles/fundamental-analysis/financial-statement-manipulation.asp
    ... Accelerating expenses into the current period; Changing accounting standards to
    foster ... remind investors to use extreme caution in their use and interpretation. ...

  • Debt Ratios: Overview Of Debt | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio1.asp
    ... approach includes all the items used in the moderate interpretation of debt ... Note:
    New accounting standards, which are currently under active consideration in ...

  • Making Sense Of The Tax Code

    http://www.investopedia.com/articles/tax/09/tax-codes-rules-regulations.asp
    ... Treasury regulations, also known as "tax regulations", are the US Treasury
    department's official interpretation of the tax code. ...

  • Behavioral Finance: Conclusion | Investopedia

    http://www.investopedia.com/university/behavioral_finance/behavioral12.asp
    ... Mental accounting refers to the tendency for people to divide their money into ... The
    gambler's fallacy refers to an incorrect interpretation of statistics where ...

  • Using Candles To Understand Market Behavior

    http://www.investopedia.com/video/play/trading-candle-chart
    ... Next video: Understanding Book Value. The conventional interpretation of candle ... Learn
    more about the generally accepted accounting principles, standards and ... ...

Related Articles

Partner Links