Accounting Convention

Accounting Convention

An accounting procedure used informally. That is, an accounting convention has been neither endorsed nor prohibited by the SEC or another appropriate body. In general, when the SEC has neither endorsed nor prohibited an accounting convention, it is because it has not needed to rule on the matter, especially if the convention is new. A ruling may formalize or forbid a convention, or it may make the convention obsolete.
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The Company has converted its accounting convention from the full-cost method to the successful efforts method, providing increased transparency and comparability to peers.
The budget crude oil price is merely an accounting convention used to calculate projected revenues.
Depreciation is added back because it is a non-cash item reliant upon on the amount of fixed assets that a firm has and can be different for various firms based on accounting convention and level of fixed assets; it has no real bearing on the operational strength of a company.
Goodwill is an accounting convention that represents the amount paid for an acquisition over and above the fair value of its net assets.
Lower interest rates increase the present value of pension liabilities, raising the apparent cost of pensions awarded, but this is an accounting convention.
One of these differences involves the use of historical cost based accounting, a prime accounting convention in the United States.
The Eugene-Springfield chapter of the Institute of Management Accountants features "Eugene Accounting Humor" as the central point of its Web page, including how you identify a Eugene CPA at an accounting convention.
Also, generally, fiscal years run from 1/1 to 12/31 by standard accounting convention.
Under UK accounting convention, companies have wide discretion in deciding when to recognise revenue in their accounts.
To limit our ambition to a narrow accounting convention called the "non-Social Security surplus" as currently measured is to declare defeat before we've even begun to make the case for why we should move forward.
The new accounting convention was supposed to help readers of mortgage company financial statements such as investment bankers, security analysts and warehouse lenders.
A Scottish Office spokesman said: "This is required as an accounting convention.

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