ABBREVIATED ACCOUNTS Meaning and
Definition
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Abbreviated accounts refer to a condensed version of a company's financial statements that are prepared and presented to the public in a summarized format. They are primarily used by small and medium-sized companies that meet certain eligibility criteria set by the regulatory authority overseeing financial reporting standards in a particular jurisdiction.
Abbreviated accounts typically include an abbreviated balance sheet, abbreviated income statement, and abbreviated cash flow statement, which provide an overview of the company's financial performance and position over a given period. These accounts are prepared using simplified reporting standards and contain key financial information that is required to be disclosed to external stakeholders, such as shareholders, creditors, and regulatory bodies.
The purpose of preparing abbreviated accounts is to reduce the reporting burden on smaller companies, as these companies may not have the same level of resources and personnel to prepare full, detailed financial statements. By offering a more concise and efficient reporting option, abbreviated accounts allow businesses to fulfill their legal obligations while saving time and costs associated with producing complete financial statements.
It is important to note that although abbreviated accounts provide a more condensed view of a company's financial performance, they must still comply with the applicable accounting and reporting standards in order to ensure accuracy and transparency.
Etymology of ABBREVIATED ACCOUNTS
The term "abbreviated accounts" is composed of two main elements: "abbreviated" and "accounts".
The word "abbreviated" comes from the Latin word "abbreviare", which means "to shorten". It is formed by combining the prefix "ad-" (meaning "to") and "breviare" (meaning "to make short"). The term "abbreviate" refers to a process of shortening or reducing something in size, duration, or extent.
The word "accounts" originates from the Latin word "computare", which means "to count". "Computare" is a combination of "com-" (meaning "together") and "putare" (meaning "to think" or "reckon"). Over time, "computare" evolved into "account" in Old French and "account" in Middle English.
