Financial Accounting

8 Glossary

Account	Summary of similar transactions in a format with two columns; the left side is called the debit side, the right side the credit side.
Acquisition costs	Measure for the initial measurement of acquired assets (§ 255 sect. 1). Acquisition costs are calculated as follows:
Purchase price or consideration
− Price reductions
+ Incidental acquisition costs
= Initial acquisition costs
+ Subsequent acquisition costs
= Total acquisition costs
All costs must be direct costs. No imputed costs are included. The acquisition process is completed when the asset is ready for operation.
Accruals	Income and expense that have already occurred must be accrued independently of a payment. To do so, in the balance sheet, accrued liabilities ...