Matching concept

Matching concept

The accounting principle that requires the recognition of all costs that are associated with the generation of the revenue reported in the income statement.

Accrual Accounting

A system of accounting that recognizes revenue and matches it with the expenses that generated that revenue. Unlike other systems of accounting, which recognize revenue and expenses in the order in which they are received, the accrual accounting convention ignores the function of time and only considers what expenses generate what revenues, even if payments have not actually been made. Companies with inventories are required to use the accrual method for tax purposes.
References in periodicals archive ?
Earlier this year, the firm launched Star Banks Adventure, an online game and mobile app designed with a matching concept that reinforces learning, while engaging kids in an epic adventure to save the galaxy from financial chaos.
We use the entity matching concept to identify potential partners and help our clients expand into newer territories.
This innovative food matching concept was designed to allow leading figures in gastronomy, such as Andreas Antona at Simpsons, to present exclusive, unique menus to compliment the new Vintage of Dom Perignon 2003.
For example, under the "Total comprehensive income and profit or loss" section 2.45 of the "Concepts and Pervasive Principles" content area, the IFRS for SMEs column explains this IFRS "does not allow the recognition of items in the statement of financial position that do not meet the definition of assets or of liabilities regardless of whether they result from applying the notion commonly referred to as the 'matching concept' for measuring profit or loss."
We older accountants were all taught the matching concept, the going concern concept, the principle of recognizing a transaction if it was at least probable and could be reasonably measured, etc.
Years later, the matching concept has met with the FASB's disapproval.
As a result, many employers are considering using a matching concept, similar to the match used in their qualified retirement plan.
As its tradition, the text is still transaction(journal-entry-) based, but it advances an understanding of the matching concept, deferrals and accruals, and their critical role in the adjustment process.
The Angel Report, published by the Community Development Venture Capital Alliance (www.cdvca.org), a New York-based business investment and development alliance, examined national matching services like ACE-Net and concluded, "The computer matching concept has proven to be a limited resource in terms of actually linking entrepreneurs with sources of capital." The CDVCA, which has a mission to bring investment capital to low-income areas and whose 80 members include 40 venture capital firms, concluded that angels favor "personal investing" and many like to "kick the tires" on a deal.
These results can be explained if it is accepted that a matching concept was acquired during the original training and that this transferred to the test stimuli.
the concept of bonds in the network literature, starting with Hammarkvist et al., 1982), the matching concept comprises everything from facilitating systems provided by governments and international organizations to company-specific measures.
Under the matching concept, a deduction is suspended until the year of inclusion.