## Accounting frameworks and financial reporting
### Foundations and accounting concepts
#### GAAP
**Generally accepted accounting principles.** The body of accounting requirements accepted in a particular reporting jurisdiction or domain. Always qualify the label: US GAAP, German commercial accounting and Canadian private enterprise standards are different bodies of requirements. GAAP is neither one worldwide standard nor a software certification. [FAF explanation of GAAP](https://www.accountingfoundation.org/page/pageContent?pageId=%2Foverview-accounting-and-standards%2Fgaap%2Faboutgaap.html).
#### Financial reporting framework
The system of concepts and accounting requirements used to prepare financial statements. It determines matters such as recognition, measurement, presentation and disclosure. A conceptual framework provides underlying reasoning; a complete reporting framework also contains applicable standards. A tax return, chart of accounts or electronic filing format is a separate thing. [IASB Conceptual Framework overview](https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/).
#### Adoption
Using a specified set of standards as the reporting requirements, subject to the jurisdiction's legal adoption or endorsement mechanism. The precise description matters: IFRS Accounting Standards as issued by the IASB and IFRS as adopted in a jurisdiction can differ in timing or content. Identify the actual basis stated in the accounts. [IFRS Foundation jurisdiction profiles](https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/).
#### Convergence
Bringing a national framework closer to another framework while retaining national standards or differences. Convergence does not by itself mean full adoption or allow an assertion of compliance with IFRS as issued by the IASB. India's Ind AS illustrates the distinction: it is substantially converged but contains identified differences. [IFRS Foundation India profile](https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/india/).
#### Accrual accounting
Accounting that records the economic effects of transactions when they occur and satisfy recognition requirements, even when payment occurs in another period. Receivables, payables and accrued employee costs are typical consequences. The cash flow statement still reports cash movements within an accrual reporting framework. [IAS 1, paragraphs 27–28](https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ias-1-presentation-of-financial-statements.pdf).
#### Cash basis accounting
Accounting that recognises transactions and events when cash is received or paid. It therefore differs from an accrual framework's recognition of unpaid obligations and earned receivables. IPSASB publishes a separate Cash Basis IPSAS; the existence of that standard does not make all IPSAS cash based. [IPSASB revised Cash Basis IPSAS](https://www.ipsasb.org/publications/revised-cash-basis-ipsas).
#### Going concern
The assumption that an entity will continue operating rather than liquidate or cease trading. Under IFRS, management evaluates whether that basis is appropriate and considers relevant uncertainties; it is an accounting preparation assumption, not a guarantee of survival. Alternative preparation and disclosure requirements apply when the assumption is inappropriate. [IAS 1 preparation requirements](https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ias-1-presentation-of-financial-statements.pdf).
#### Materiality
The judgement about whether information could influence the decisions of the relevant users of financial statements. Nature, magnitude and the financial statements as a whole matter; materiality is not a universal percentage threshold. It affects recognition, measurement, presentation and disclosure, including whether information is obscured. [IASB explanation of materiality](https://www.ifrs.org/news-and-events/news/2019/01/materiality-modernised/).
#### Prudence
Caution when making judgements under uncertainty, supporting neutrality. In the IASB Conceptual Framework, prudence does not authorise deliberate understatement of assets or income, or overstatement of liabilities or expenses. It is not a separate framework. [IASB 2018 Conceptual Framework project summary](https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework/fact-sheet-project-summary-and-feedback-statement/conceptual-framework-project-summary.pdf?la=en).
#### Recognition
Including a qualifying item in the financial statements as an asset, liability, equity, income or expense. Recognition concerns inclusion; measurement concerns amount. Keeping an operational record or disclosing a commitment does not necessarily mean recognising an asset or liability. [IASB recognition concepts](https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework/fact-sheet-project-summary-and-feedback-statement/conceptual-framework-project-summary.pdf?la=en).
#### Measurement
Determining the monetary amount assigned to a recognised item. Standards can require a particular basis, such as historical cost or a current value, and subsequent remeasurement. Measurement follows reporting requirements and accounting policies; changing display currency is a different operation. [IASB measurement concepts](https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework/fact-sheet-project-summary-and-feedback-statement/conceptual-framework-project-summary.pdf?la=en).
#### Presentation and disclosure
**Presentation** concerns how information is classified and displayed in the financial statements; **disclosure** provides explanatory and supporting information, including notes. They complement recognition and measurement. A reporting framework can require disclosure of an item that is not recognised on the balance sheet. [IASB Conceptual Framework overview](https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/).
### International accounting institutions and frameworks
#### IFRS Foundation
**International Financial Reporting Standards Foundation.** The independent, not-for-profit organisation within which the IASB and ISSB develop their respective standards. Its governance includes Trustees and public accountability arrangements. The Foundation is the institutional umbrella; IASB accounting standards and ISSB sustainability disclosure standards are separate standard families with different reporting purposes. [IFRS Foundation organisation and purpose](https://www.ifrs.org/about-us/who-we-are/).
#### IASB
**International Accounting Standards Board.** The IFRS Foundation's independent board responsible for developing IFRS Accounting Standards. It began operating in 2001, succeeding the International Accounting Standards Committee in international accounting standard setting. The IASB writes standards; legislatures, regulators and other jurisdictional mechanisms determine their legal application. [IFRS Foundation introduction and board history](https://www.ifrs.org/sustainability/knowledge-hub/introduction-to-the-ifrs-foundation/).
#### IFRS Accounting Standards
**IFRS Accounting Standards**, with **IFRS** originating from **International Financial Reporting Standards**. The international financial reporting requirements developed or adopted by the IASB encompass IFRS-numbered standards, continuing IAS standards and applicable IFRIC/SIC interpretations. The family governs financial statement accounting rather than local tax calculation or invoice exchange. Distinguish standards as issued by the IASB from jurisdictionally endorsed versions, and full IFRS from the separate IFRS for SMEs Accounting Standard. An ERP must implement the required treatments, policies and disclosures; a generic IFRS claim does not settle local statutory reporting. [IFRS Foundation issued standards](https://www.ifrs.org/issued-standards/), [IFRS Accounting Standards navigator](https://www.ifrs.org/issued-standards/list-of-standards/).
#### IAS and IASC
**International Accounting Standards** and the **International Accounting Standards Committee**. IAS is the numbering prefix retained by standards originally issued by the IASB's predecessor, IASC. Many remain in the IFRS Accounting Standards family after amendments. An IAS number is not automatically obsolete: IAS 2, IAS 12 and IAS 21 still address important accounting subjects. [IFRS Foundation standards directory](https://www.ifrs.org/issued-standards/list-of-standards/), [IAS 21 history](https://www.ifrs.org/issued-standards/list-of-standards/ias-21-the-effects-of-changes-in-foreign-exchange-rates/).
#### IFRIC and IFRS Interpretations Committee
**International Financial Reporting Interpretations Committee** is the former committee name behind the IFRIC prefix. The current **IFRS Interpretations Committee** supports consistent application of IFRS Accounting Standards. Numbered IFRIC interpretations form part of the requirements when applicable; committee meeting summaries and agenda decisions have different roles and should not be described as new numbered standards. [Original IFRIC name in the January 2010 update](https://www.ifrs.org/content/dam/ifrs/news/updates/ifrs-ic/2010/january2010ifricupdate.pdf), [current committee updates](https://www.ifrs.org/news-and-events/updates/ifric/).
#### SIC
**Standing Interpretations Committee.** The former IASC interpretative body and prefix for its interpretations. Continuing SIC interpretations can remain relevant within IFRS Accounting Standards; others have been superseded. For example, SIC-7 addresses introduction of the euro, whereas IFRS 15 replaced SIC-31 on advertising barter revenue. [SIC-7 history](https://www.ifrs.org/issued-standards/list-of-standards/sic-7-introduction-of-the-euro/), [IFRS 15 supersession history](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/).
#### Conceptual Framework for Financial Reporting
The IASB's foundation of financial reporting concepts, revised in 2018. It guides standard setting and assists accounting policy development where no applicable standard addresses a transaction. It addresses objectives, useful information, financial statement elements, recognition, measurement and presentation. It is not an IFRS Accounting Standard and does not override a requirement in a standard. [IASB Conceptual Framework overview](https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/), [2018 project summary](https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework/fact-sheet-project-summary-and-feedback-statement/conceptual-framework-project-summary.pdf?la=en).
#### IFRS for SMEs Accounting Standard
**International Financial Reporting Standard for Small and Medium-sized Entities.** A separate, simplified accounting standard for eligible entities without public accountability that publish general purpose financial statements. Eligibility is not determined solely by headcount or revenue, and jurisdictions decide whether to permit or require it. It removes some full-IFRS topics and options and simplifies requirements and disclosures. The third edition, issued in February 2025, applies to annual periods beginning on or after 1 January 2027, with early application permitted. Do not silently replace an entity's applicable 2015 edition before its transition. [IFRS Foundation SME standard and editions](https://www.ifrs.org/issued-standards/ifrs-for-smes/).
### United States accounting institutions and frameworks
#### US GAAP
**United States generally accepted accounting principles.** In nongovernmental financial reporting, the FASB Accounting Standards Codification is the authoritative source recognised by FASB, with SEC rules and interpretations additionally relevant to SEC registrants. State and local governmental GAAP falls under GASB's separate standards. US GAAP and IFRS remain distinct frameworks even where joint standard-setting projects produced similar requirements. Establish the entity's reporting obligations and any applicable private company alternatives before specifying ERP accounting treatments. [FASB standards and Codification](https://fasb.org/Page/PageContent?PageId=%2Fstaticpages%2Fstandards.html), [SEC recognition of FASB](https://www.sec.gov/rules-regulations/policy-statements/33-8221).
#### FAF
**Financial Accounting Foundation.** The independent US nonprofit responsible for oversight, administration, financing and appointment of the FASB and GASB. Its Trustees protect the independence and effectiveness of standard setting. FAF is an oversight organisation, distinct from the boards that decide accounting standards and from the SEC securities regulator. [FAF role in its annual report](https://storage.accountingfoundation.org/AnnualReports/FAF_AR23_HTML/pdf/FAF_2023AR_StandardsThatWork_FromMainStreetToWallStreet.pdf).
#### FASB
**Financial Accounting Standards Board.** The independent private-sector US accounting standard setter for nongovernmental entities. Its standard-setting process operates under FAF oversight. SEC recognition gives its standards a particular role under federal securities law, but the FASB is not a government agency and its scope extends beyond listed companies. [FASB mission](https://fasb.org/page/PageContent?pageId=%2Fabout-us%2Ffasb-mission.html), [SEC policy statement](https://www.sec.gov/rules-regulations/policy-statements/33-8221).
#### ASC
**Accounting Standards Codification.** FASB's organised authoritative body of nongovernmental US GAAP. A citation such as ASC 606-10-25-1 identifies topic, subtopic, section and paragraph; ASC 606 names the revenue topic. The Codification replaced the previous hierarchy of FASB and other recognised accounting literature, rather than being another optional guide alongside it. [FASB Codification notice to constituents](https://asc.fasb.org/layoutComponents/getPdf?fileName=FASB_Codification_Notice_to_Constituents_V5.10_0.pdf&isSitesBucket=true).
FASB was established in 1973 under the FAF structure. The later Codification project brought literature from multiple predecessors into one organized reference; its 2009 introduction explains why older material uses predecessor pronouncement citations rather than ASC numbers. [FAF, institutional history](https://storage.accountingfoundation.org/AnnualReports/FAF_AR21_HTML/index.html), [FASB, literature included in the Codification](https://asc.fasb.org/layoutComponents/getPdf?fileName=FASB_About_the_Codification.pdf&isSitesBucket=true).
#### ASU
**Accounting Standards Update.** A FASB publication communicating amendments to the ASC, their rationale, effective dates and transition. An ASU is not independently authoritative; the amended Codification contains the requirements. Do not confuse an ASU number, such as 2015-11, with a topic number, such as ASC 330. Proposed ASUs are exposure drafts rather than issued amendments. [FASB ASU 2015-11, introductory notice](https://storage.fasb.org/ASU_2015-11.pdf).
#### SEC
**Securities and Exchange Commission.** The US federal securities regulator, with authority over financial reporting by entities within its jurisdiction. The SEC recognises FASB as the designated private-sector standard setter while retaining its own legal responsibilities. SEC filing requirements and staff accounting guidance therefore must be distinguished from FASB's standards and from state corporate or tax law. [SEC standard-setter recognition policy](https://www.sec.gov/rules-regulations/policy-statements/33-8221).
### Public sector accounting
#### GASB
**Governmental Accounting Standards Board.** The US standard setter for state and local government financial accounting and reporting. Its standards establish governmental GAAP in that domain, under FAF oversight. GASB is separate from FASB, the international IPSASB and US federal government accounting standard setting. [GASB official site](https://www.gasb.org/), [FAF scope arrangements](https://storage.accountingfoundation.org/GASB_Scope_Final_%28revised%29_11-13.pdf).
#### GARS
**Governmental Accounting Research System.** GASB's research platform containing US state and local governmental accounting literature, including its Codification, original pronouncements and implementation guidance. It is an access and research system; it is not an additional reporting framework or a replacement name for GASB. [GASB GARS platform](https://gars.gasb.org/).
#### GAS and DRS
**German Accounting Standards**, called **Deutsche Rechnungslegungs Standards** in German, are issued by Germany's DRSC/Accounting Standards Committee of Germany. The English abbreviation GAS must not be assumed to mean GASB standards. “Governmental accounting standards” can also be a generic phrase, so resolve GAS from jurisdiction and issuer before assigning an expansion. [DRSC pronouncements](https://www.drsc.de/en/our-pronouncements/), [GAS 20: Group Management Report](https://www.drsc.de/en/pronouncements/gas-20/).
#### IPSASB
**International Public Sector Accounting Standards Board.** The international board developing IPSAS Accounting Standards and related public sector reporting guidance. Its work addresses governments and other public sector entities. It also develops a separate sustainability reporting standards family, IPSASB SRS; that family should not be confused with financial statement accounting requirements. [IPSASB role and standard families](https://www.ipsasb.org/).
#### IPSAS
**International Public Sector Accounting Standards.** IPSASB's financial reporting standards for the public sector, including accrual standards and a separately identified Cash Basis IPSAS. They address public sector circumstances rather than simply renaming private-sector IFRS. Whether an entity must or may apply them depends on jurisdictional adoption. Identify accrual or cash basis explicitly in any comparison of systems or financial statements. [IPSASB standards and pronouncements](https://www.ipsasb.org/standards-pronouncements), [Cash Basis IPSAS](https://www.ipsasb.org/publications/revised-cash-basis-ipsas).
### Sustainability disclosure and its relationship to accounting
#### ISSB
**International Sustainability Standards Board.** The IFRS Foundation's independent board developing IFRS Sustainability Disclosure Standards. Established in 2021, it is the IASB's sister board. Its investor-focused sustainability disclosures concern risks and opportunities affecting an entity's prospects; they complement financial statements but do not replace IASB recognition and measurement standards. [ISSB purpose and establishment](https://www.ifrs.org/groups/international-sustainability-standards-board/).
#### IFRS S1
**General Requirements for Disclosure of Sustainability-related Financial Information.** The ISSB standard providing overarching requirements for reporting sustainability-related risks and opportunities relevant to users of general purpose financial reports. Issued in June 2023 and effective from annual periods beginning 1 January 2024, its legal application still depends on jurisdictional requirements or voluntary adoption. [IFRS S1 official supporting materials](https://www.ifrs.org/supporting-implementation/supporting-materials-for-ifrs-sustainability-disclosure-standards/ifrs-s1/).
#### IFRS S2
**Climate-related Disclosures.** The ISSB's climate-specific disclosure standard, applied with IFRS S1. It addresses climate-related risks and opportunities, including governance, strategy, risk management, metrics and targets. It is a disclosure standard rather than a carbon tax calculation or a replacement for financial statement asset and liability accounting. [IFRS S2 standard navigator](https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/ifrs-s2-climate-related-disclosures/), [IFRS S2 supporting materials](https://www.ifrs.org/supporting-implementation/supporting-materials-for-ifrs-sustainability-disclosure-standards/ifrs-s2/).
#### ESRS
**European Sustainability Reporting Standards.** The EU's sustainability reporting standards adopted through delegated legislation under the Accounting Directive as amended by CSRD. EFRAG supplies technical advice; the European Commission adopts the legal standards. ESRS use double materiality and have interoperability with ISSB standards, but alignment is not automatic legal equivalence. EFRAG's simplified ESRS technical advice is explicitly labelled not yet an adopted delegated act on the cited page; distinguish proposals from applicable requirements. [ESRS adopted Set 1](https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html), [EFRAG simplified ESRS status](https://knowledgehub.efrag.org/eng/interactive/simplified-esrs/esrs-1/technical-advice), [ESRS–ISSB interoperability guidance](https://www.ifrs.org/news-and-events/news/2024/05/ifrs-foundation-and-efrag-publish-interoperability-guidance/).
#### CSRD
**Corporate Sustainability Reporting Directive.** Directive (EU) 2022/2464, the EU legislation amending the corporate reporting regime to introduce sustainability reporting requirements. CSRD is legislation; ESRS specify reporting content under that regime. Scope, timing and national implementation require separate current-law checks, particularly following EU simplification changes. It is not an alternative financial accounting framework to IFRS or local GAAP. [CSRD official legal text](https://eur-lex.europa.eu/eli/dir/2022/2464/oj), [EFRAG explanation of the legal relationship](https://knowledgehub.efrag.org/eng/interactive/ig/ig1/09-2025).
#### Double materiality
The ESRS approach assessing both an undertaking's material impacts on people and the environment and sustainability matters' material financial effects on the undertaking. A matter can be material under either perspective. This broader reporting assessment should not be equated with financial statement materiality or assumed identical to ISSB's investor-focused scope. [EFRAG materiality implementation guidance](https://knowledgehub.efrag.org/eng/interactive/ig/ig1/09-2025).
### National accounting frameworks and standard setters
#### FRC
**Financial Reporting Council.** The UK body developing and maintaining UK and Irish accounting standards, including FRS 100–105. “FRC” names the institution, while FRS identifies an issued Financial Reporting Standard. Companies' applicable reporting regime also depends on company law and their eligibility or obligation to apply particular standards. [FRC UK and Irish accounting standards](https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/uk-accounting-standards/).
#### FRS 102
**The Financial Reporting Standard applicable in the UK and Republic of Ireland.** The principal single standard for entities not using adopted IFRS, FRS 101 or FRS 105. It is based on IFRS for SMEs with significant UK and Irish amendments, so the frameworks are not interchangeable. Its scope includes entities other than companies and entities without a profit objective. The FRC's Periodic Review 2024 amendments have a principal effective date of 1 January 2026. Specify the applicable edition and amendments when assessing a company's accounts or ERP requirements. [FRC FRS 102 purpose, origins and effective dates](https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/uk-accounting-standards/frs-102/).
#### FRS 105
**The Financial Reporting Standard applicable to the Micro-entities Regime.** The UK and Irish standard intended for qualifying companies preparing accounts under that regime. Micro-entity eligibility is a legal and reporting question; it is not synonymous with any small business or an informal cash accounting election. [FRC micro-entity standard overview](https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/uk-accounting-standards/frs-105/).
#### FRS 101
**Reduced Disclosure Framework.** The UK and Irish standard addressing individual financial statements of qualifying subsidiaries and ultimate parents otherwise applying adopted IFRS recognition, measurement and disclosure requirements. It provides specified disclosure exemptions. It differs from FRS 102 and the micro-entity regime, and is not a blanket permission to omit consolidated accounts. [FRC reduced disclosure framework](https://www.frc.org.uk/library/standards-codes-policy/accounting-and-reporting/uk-accounting-standards/frs-101/).
#### HGB
**Handelsgesetzbuch — German Commercial Code.** German legislation containing commercial bookkeeping and financial reporting requirements, including annual accounts and consolidated reporting provisions. “HGB accounting” describes a legal reporting basis rather than a private standard setter. Distinguish it from German tax accounting and from IFRS group reporting. [German Commercial Code](https://www.gesetze-im-internet.de/hgb/).
#### ANC
**Autorité des normes comptables — French Accounting Standards Authority.** France's accounting standard-setting authority, responsible for regulations including the Plan comptable général. ANC identifies the issuer; a regulation number identifies a particular legal accounting instrument. The authority's French standards collections are distinct from IFRS reporting requirements. [ANC French accounting standards collections](https://www.anc.gouv.fr/normes-comptables-francaises/recueils-des-normes-comptables).
#### PCG
**Plan comptable général — General Accounting Plan.** France's general accounting regulation, consolidated in ANC Regulation 2014-03 as amended. It covers accounting rules as well as the account structure; translating it simply as “chart of accounts” understates its scope. ANC publishes the consolidated PCG and a separate plan de comptes. [ANC PCG and chart of accounts, 2026 versions](https://www.anc.gouv.fr/plan-comptable-general-0).
#### PGC
**Plan General de Contabilidad — General Accounting Plan.** Spain's general accounting framework approved by Royal Decree 1514/2007, including a conceptual framework, recognition and measurement rules, annual accounts and account definitions. It is distinct from the PGC de PYMES for eligible smaller entities and from IFRS as adopted by the EU. [ICAC official PGC publication](https://www.icac.gob.es/sites/default/files/2022-02/PLAN_GENERAL_DE_CONTABILIDAD_accesible.pdf).
#### OIC
**Organismo Italiano di Contabilità — Italian Accounting Organisation.** Italy's national accounting standard setter. “OIC standards” refers to its Italian accounting pronouncements, used with the applicable statutory requirements. An OIC number identifies a particular national standard; it is not an IFRS number translated into Italian. [OIC national accounting standards](https://www.fondazioneoic.eu/principi-contabili/).
#### RJ
**Raad voor de Jaarverslaggeving — Dutch Accounting Standards Board**, and, in practice, references to its **Richtlijnen voor de jaarverslaggeving**, the financial reporting guidelines. The issuer and guidelines share the abbreviation in common usage. The large guidelines collection addresses medium-sized and large entities; Dutch statutory law remains a separate layer. [RJ large guidelines collection](https://www.rjnet.nl/richtlijnen/grote-bundel/).
#### BFN
**Bokföringsnämnden — Swedish Accounting Standards Board.** The Swedish government expert authority that develops generally accepted accounting practice through general advice and guidance. Its publications include K frameworks. BFN names the authority; BFNAR identifies its numbered general advice, such as BFNAR 2012:1 for K3. [BFN official site](https://www.bfn.se/), [BFN framework directory](https://www.bfn.se/redovisningsregler/vagledningar/k-regelverk/).
#### K2
**Årsredovisning i mindre företag — Annual reports in smaller enterprises**, BFNAR 2016:10. K2 is a Swedish reporting framework for eligible entities, with simplified rules. It must be applied as a whole within its stated scope. Check eligibility and the version applicable to the financial year's start; BFN distinguishes pre-2026 and later versions. [BFN K2 versions and application](https://www.bfn.se/redovisningsregler/vagledningar/k-regelverk/).
#### K3
**Årsredovisning och koncernredovisning — Annual reports and consolidated financial statements**, BFNAR 2012:1. K3 is a Swedish accounting framework covering annual and group accounts. It is distinct from K2 and from IFRS. BFN publishes versions differentiated by financial-year start dates, so a generic “K3 supported” label needs an applicable-version check. [BFN K3 directory](https://www.bfn.se/redovisningsregler/vagledningar/k-regelverk/).
#### ASBJ
**Accounting Standards Board of Japan.** The Japanese accounting standard setter that develops standards and implementation guidance within the Japanese GAAP framework. ASBJ is the issuer, while JGAAP is the framework label. Its standards are designated through Japan's regulatory arrangements; the board also publishes Japan's Modified International Standards separately. [ASBJ explanation of Japanese reporting frameworks](https://www.asb-j.jp/en/about.html).
#### JGAAP
**Japanese generally accepted accounting principles**, also written Japanese GAAP. Japan's domestic financial reporting framework. It is distinct from designated IFRS, US GAAP and Japan's Modified International Standards, which ASBJ identifies as other permitted frameworks for consolidated financial statements under the relevant arrangements. Do not equate Japanese-language accounts with use of JGAAP. [ASBJ framework overview](https://www.asb-j.jp/en/about.html).
#### ASBE
**Accounting Standards for Business Enterprises — 企业会计准则.** China's enterprise accounting standards issued by the Ministry of Finance. They pursue convergence with IFRS but remain a Chinese national framework, with national issuance and effective dates. “Chinese GAAP” should be qualified by the actual regime, because not every Chinese entity uses the same enterprise standards. [Chinese Ministry of Finance explanation of ASBE and convergence](https://kjs.mof.gov.cn/ywwz_14995/Policies/202411/t20241129_3948572.htm).
#### Ind AS
**Indian Accounting Standards.** India's IFRS-converged standards notified under its legal framework. They include differences from IFRS as issued by the IASB, so Ind AS compliance does not automatically establish IFRS compliance. Applicability follows the Indian roadmap and entity requirements; “Ind AS” and India's separate “AS” standards must not be used interchangeably. [IFRS Foundation India jurisdiction profile](https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/india/).
#### AS — Indian Accounting Standards context
**Accounting Standards**, in Indian references to the accounting regime distinct from Ind AS. The unqualified abbreviation AS is highly ambiguous internationally. Preserve the Indian context and standard number, and determine which regime applies to the entity before mapping requirements; an AS number need not address the same subject as an Ind AS number. [ICAI comparison of Ind AS and existing Accounting Standards](https://kb.icai.org/pdfs/PDFFile5b430f7a159ab8.29861373.pdf).
#### CPC
**Comitê de Pronunciamentos Contábeis — Brazilian Accounting Pronouncements Committee.** The Brazilian body preparing accounting pronouncements and related technical documents for the national reporting system. Its work supports convergence with IFRS. A CPC pronouncement and its adoption by the competent regulator are distinct steps; verify the applicable regulatory version rather than assuming IFRS issuance immediately changes Brazilian requirements. [CPC issued pronouncements](https://www.cpc.org.br/CPC/Documentos-Emitidos/Pronunciamentos), [CPC conceptual framework](https://www.cpc.org.br/Arquivos/Documentos/573_CPC00%28R2%29.pdf).
#### AASB
**Australian Accounting Standards Board**, also the prefix on Australian Accounting Standards, such as AASB 1053. Australia's Tier 1 framework incorporates IFRS requirements with Australian additions and relevant sector provisions; Tier 2 uses simplified disclosures. Identify the tier and entity sector rather than treating every AASB report as identical to full IFRS. [AASB 1053: application of tiers](https://standards.aasb.gov.au/aasb-1053-may-2022).
#### AcSB
**Accounting Standards Board.** Canada's independent standard setter for entities outside the public sector. Its responsibilities encompass Canadian private-sector financial reporting, including IFRS-related work and domestic standards. The mixed-case AcSB abbreviation helps distinguish it from similarly named boards elsewhere; it is different from Canada's Public Sector Accounting Board. [Canadian AcSB role](https://www.frascanada.ca/en/acsb).
#### ASPE
**Accounting Standards for Private Enterprises.** The Canadian domestic framework in Part II of the CPA Canada Handbook — Accounting. It is separate from Part I IFRS Accounting Standards and the frameworks for not-for-profit organisations and pension plans. “Canadian GAAP” alone therefore does not identify ASPE; specify the relevant Handbook part and entity eligibility. [AcSB accounting framework structure](https://www.frascanada.ca/en/acsb), [AcSB discussion of Canadian framework parts](https://www.frascanada.ca/-/media/frascanada/aspe/documents/acsb-cp-exploring-scalability-canada-2023.pdf).
### Selected IFRS and IAS standards
#### IFRS 15
**Revenue from Contracts with Customers.** The IASB revenue standard based on identifying contracts and performance obligations, determining and allocating the transaction price, and recognising revenue as control transfers. Billing dates and cash collection alone do not determine revenue. It replaced IAS 18, IAS 11 and specified interpretations. [IFRS 15 overview and history](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/).
#### IFRS 16
**Leases.** The IASB standard governing lease accounting, including a lessee's recognition of right-of-use assets and lease liabilities, subject to specified exemptions. It also covers lessor accounting and disclosures. A rental payment schedule is therefore only part of an IFRS lease accounting process. [IFRS 16 overview](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/).
#### IFRS 9
**Financial Instruments.** The IASB standard addressing classification and measurement of financial assets and liabilities, expected credit losses and hedge accounting. Trade receivables can fall within its impairment requirements, so its relevance extends beyond financial institutions. It should not be treated as merely a foreign exchange standard. [IFRS 9 overview](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-9-financial-instruments/).
#### IFRS 18
**Presentation and Disclosure in Financial Statements.** Replaces IAS 1 for annual periods beginning on or after 1 January 2027, with early application permitted. It introduces defined profit subtotals, management-defined performance measure disclosures and improved aggregation/disaggregation requirements. Issued status and mandatory effective status differ; jurisdictional endorsement must also be checked. [IFRS 18 effective date and requirements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-18-presentation-and-disclosure-in-financial-statements/).
#### IFRS 10
**Consolidated Financial Statements.** The IASB standard establishing control as the basis for including subsidiaries in consolidated financial statements. The control assessment determines the reporting boundary and is not simply a fixed ownership-percentage test. An ERP consolidation hierarchy should follow the applicable accounting assessment. [IFRS 10 overview](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/).
#### IFRS 3
**Business Combinations.** The IASB standard governing an acquirer's accounting for qualifying business combinations, including identifiable acquired assets and liabilities, goodwill or bargain purchase gains, and disclosures. Determine whether the acquired set is a business before applying the model; buying assets is not automatically a business combination. [IFRS 3 overview](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-3-business-combinations/).
#### IAS 1
**Presentation of Financial Statements.** The established IFRS standard for overall financial statement presentation, structure and minimum content, including related preparation principles. IFRS 18 replaces it from the latter standard's applicable effective date; some IAS 1 requirements move to IAS 8 or IFRS 7. Existing reports can therefore correctly cite IAS 1. [IAS 1 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-1-presentation-of-financial-statements/), [IFRS 18 transition relationship](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-18-presentation-and-disclosure-in-financial-statements/).
#### IAS 2
**Inventories.** The IFRS standard governing inventory cost determination, expense recognition and write-downs to net realisable value. It affects costing methods and valuation rather than merely warehouse quantities. Inventory tax rules and an ERP's physical stock tracking do not by themselves establish IAS 2 compliance. [IAS 2 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-2-inventories/).
#### IAS 7
**Statement of Cash Flows.** The IFRS standard governing reporting cash flow movements, including operating, investing and financing activities. A cash flow statement is part of accrual financial reporting; preparing one does not mean the entity uses cash basis accounting. Classification and reconciliation require accounting data beyond bank balances. [IAS 7 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-7-statement-of-cash-flows/).
#### IAS 8
**Accounting Policies, Changes in Accounting Estimates and Errors**, renamed **Basis of Preparation of Financial Statements** with the IFRS 18-related amendments. It governs policy selection and changes, estimate changes and error corrections. Its policy hierarchy refers to relevant standards and then conceptual guidance where no specific standard applies. Confirm which version the reporting period uses. [IAS 8 current page and policy hierarchy](https://www.ifrs.org/issued-standards/list-of-standards/ias-8-basis-of-preparation-of-financial-statements/), [IFRS 18 transfer of requirements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-18-presentation-and-disclosure-in-financial-statements/).
#### IAS 12
**Income Taxes.** The IFRS standard for accounting for current and deferred income tax, including temporary differences between accounting carrying amounts and tax bases. It concerns financial statement accounting for profit-based taxes. It does not prescribe a country's corporation tax rate or replace local tax return calculation. [IAS 12 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-12-income-taxes/).
#### IAS 16
**Property, Plant and Equipment.** The IFRS standard addressing recognition and measurement of tangible assets used over more than one period, including depreciation and related impairment. ERP fixed asset registers must preserve the accounting information required for these treatments; local tax depreciation can require a separate valuation basis. [IAS 16 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-16-property-plant-and-equipment/).
#### IAS 19
**Employee Benefits.** The IFRS standard for employee benefit accounting, including short-term benefits, post-employment arrangements and termination benefits; share-based payments fall under IFRS 2. It distinguishes defined contribution and defined benefit plans. Payroll calculations alone do not cover every obligation or actuarial measurement required in financial statements. [IAS 19 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-19-employee-benefits/).
#### IAS 21
**The Effects of Changes in Foreign Exchange Rates.** The IFRS standard addressing foreign currency transactions and translation of financial statements. It distinguishes functional currency, based on the primary economic environment, from presentation currency. An ERP's supported currency list does not establish that it correctly implements translation and exchange difference accounting. [IAS 21 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-21-the-effects-of-changes-in-foreign-exchange-rates/).
#### IAS 36
**Impairment of Assets.** The IFRS standard preventing assets within its scope from being carried above recoverable amount. It includes cash-generating unit and goodwill testing requirements. Other standards govern impairment for excluded categories, such as inventories and IFRS 9 financial assets; a single generic write-down routine is not the whole impairment model. [IAS 36 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-36-impairment-of-assets/).
#### IAS 37
**Provisions, Contingent Liabilities and Contingent Assets.** The IFRS standard governing uncertain obligations and contingencies. A provision is a liability of uncertain timing or amount, with recognition criteria; some contingencies require disclosure rather than recognition. A management budget for future spending is not automatically a present accounting obligation. [IAS 37 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-37-provisions-contingent-liabilities-and-contingent-assets/).
#### IAS 38
**Intangible Assets.** The IFRS standard for identifiable non-monetary assets without physical substance, including recognition, measurement and disclosures. It distinguishes research expenditure from development expenditure meeting capitalisation criteria. Acquired goodwill falls under IFRS 3 rather than IAS 38; internally generated goodwill is not recognised as an asset. [IAS 38 overview](https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/).
### Selected US GAAP Codification topics
#### ASC 606
**Revenue from Contracts with Customers.** FASB's US GAAP revenue topic, built around contracts, performance obligations, transaction price and transfer to customers. It emerged from a joint revenue project with the IASB, but the two frameworks are not interchangeable. Contract billing, cash and revenue schedules need separate treatment where timing differs. [FASB revenue project and amendments](https://fasb.org/projects/recently-completed-projects/revenue-recognition-summary).
#### ASC 842
**Leases.** FASB's US GAAP lease topic, including lessee right-of-use asset and lease liability accounting. Its operating and finance lease model differs in important respects from IFRS 16. Storing lease contracts and calculating rent does not establish compliance with either framework's recognition, measurement and disclosure requirements. [FASB lease standard, ASU 2016-02](https://storage.fasb.org/ASU_2016-02_Section_A.pdf).
#### ASC 830
**Foreign Currency Matters.** The US GAAP topic for foreign currency transactions and translation, including functional currency and cumulative translation adjustments. A reporting currency conversion and a transaction's exchange gain or loss can have different accounting effects. Multi-currency software capability is therefore broader and less specific than ASC 830 implementation. [FASB foreign currency amendment and background](https://storage.fasb.org/ASU2013-05.pdf).
#### ASC 740
**Income Taxes.** The US GAAP topic addressing income tax accounting, including current and deferred tax and disclosures. It is not the US tax code or a tax filing form. Topic amendments can change financial statement disclosures without changing the underlying tax return calculation. [FASB income tax disclosures project](https://fasb.org/page/PageContent?pageId=%2Fprojects%2Frecently-completed-projects%2Fimprovements-to-income-tax-disclosures.html).
#### ASC 810
**Consolidation.** The US GAAP topic determining whether and how entities are consolidated, including variable interest entity requirements. It should be assessed separately from IFRS 10's model. Legal ownership structures and ERP company hierarchies are inputs; they do not by themselves determine the accounting consolidation conclusion. [FASB consolidation and business combination amendment](https://storage.fasb.org/ASU%202025-03.pdf).
#### ASC 805
**Business Combinations.** The US GAAP topic governing accounting for business acquisitions, including determining the accounting acquirer and recognising acquired assets, liabilities and goodwill under the applicable model. It interacts with ASC 810 for particular acquisitions. The topic number identifies the accounting subject, not an acquisition filing or legal merger procedure. [FASB business combination and consolidation amendment](https://storage.fasb.org/ASU%202025-03.pdf).
#### ASC 350
**Intangibles — Goodwill and Other.** The US GAAP topic covering goodwill and other intangible asset accounting, with relevant subtopics and alternatives. Its goodwill impairment requirements differ from the IAS 36 framework. Identify the asset category and applicable entity accounting elections before configuring amortisation or impairment processing. [FASB goodwill impairment amendment](https://storage.fasb.org/ASU2017-04.pdf).
#### ASC 360
**Property, Plant, and Equipment.** The US GAAP topic including long-lived asset impairment and disposal accounting. Recoverability testing and impairment measurement require evidence and assumptions beyond ordinary depreciation schedules. The topic is not a guarantee that all fixed asset accounting subjects or all industry assets follow one identical model. [SEC staff discussion of ASC 360 recoverability and impairment](https://www.sec.gov/interps/account/sabcodet5.htm), [FASB Topic 360 amendment](https://storage.fasb.org/ASU%202011-10.pdf).
#### ASC 326
**Financial Instruments — Credit Losses.** The US GAAP topic including current expected credit loss measurement for relevant financial assets. Its reach includes trade receivables as well as lending assets. Expected loss estimates and allowances require more than aged-debt reporting; scope and asset classification affect the applicable treatment. [FASB credit losses standard](https://storage.fasb.org/ASU_2016-13.pdf), [FASB implementation explanation](https://storage.fasb.org/FASB%20in%20Focus_Credit%20Losses%20%286-16%29.pdf).
#### ASC 330
**Inventory.** The US GAAP inventory topic, including cost and subsequent measurement. The lower-of-cost-and-net-realisable-value model introduced by ASU 2015-11 excludes inventory measured using LIFO or the retail inventory method. Do not assume one valuation comparison covers all inventory methods or that ASC 330 and IAS 2 are identical. [FASB inventory measurement amendment](https://storage.fasb.org/ASU_2015-11.pdf).
#### ASC 450
**Contingencies.** The US GAAP topic addressing gain and loss contingencies. Under the general loss contingency model, recognition involves both a probable incurred loss and a reasonably estimable amount; disclosure considerations are separate. It is not a general permission to recognise any forecast expense or reserve chosen by management. [FASB discussion quoting ASC 450-20-25-2](https://storage.fasb.org/0904S1S1.pdf).
### Source and scope notes
Primary standard-setter, governmental and regulator sources support these definitions. Public IFRS standard overview pages were opened for the numbered IFRS/IAS entries; these are summaries rather than the complete licensed standards. The archived Conceptual Framework full-text link redirected to an IFRS Digital subscription page, so the concepts rely on the public IASB overview and 2018 project summary instead. The historical IAS 1 PDF supporting accrual and going concern was available as an indexed official excerpt; its complete current text was not independently inspected.
FASB's public ASU PDFs and project summaries support topic names and selected scope explanations. ASUs are amendment publications, so this glossary does not represent a consolidated current paragraph-by-paragraph US GAAP review. The ASC 450 source is a historical official discussion quoting the recognition paragraph; the entry makes no claim that the associated discussion paper introduced new authoritative requirements. Some national framework descriptions rely on indexed official material, notably the Chinese Ministry of Finance, ICAI, CPC, OIC, RJ and AASB pages. Canadian AcSB, FRC, ANC, BFN and ASBJ overview pages were opened successfully. The CSRD EUR-Lex page returned an anti-bot challenge on direct opening; the directive identification and relationship to ESRS are corroborated by the cited official EFRAG material.
Effective dates stated here are standard-setter dates, not proof of national endorsement or a particular company's required adoption date. IFRS 18 and the third edition of IFRS for SMEs illustrate why issued, early-adopted and mandatorily effective standards must be distinguished in 2026. The IAS 8 new title appears on the Foundation's current issued-standard page even while older title references remain valid for periods applying the earlier requirements. Sustainability scope and EU reform timetables require a separate current applicability review. This glossary intentionally provides no ERP support ratings from accounting acronyms alone.
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Canonical: https://erplocalization.com/glossary/accounting/ · Full glossary: https://erplocalization.com/glossary/index.md · Last updated: 2026-10-17 · Informational only; not tax, legal or implementation advice.