Abc Corporte Collaspe

The ABC of a corporate collapse
Glossary of terms
Term Accounting standards ASIC - The Australian Securities and Investments Commission Asset Cash reserves Child care benefit rebate Conflict of interest Corporate governance Creditors Current asset Current liability Definition The guidance provided by the professional bodies to assist members in the preparation and presentation of financial statements. Under Corporations Law publicly issued financial statements must be prepared in accordance with Australian Accounting Standards. An independent government body overseeing all corporate activity in Australia. ASIC seeks to protect investors and consumers by ensuring company directors conduct themselves ethically and in accordance with corporations law. A resource controlled by the entity from which future economic benefits (e.g. generation of future cash flow, exchanged for an asset, used in settling a debt) are expected to flow. Cash on hand or on deposit that is readily accessible by the entity. A sum of money payable from the federal government to subsidise the cost of child care in registered in approved child care centres. A conflict between public responsibility and self interest. The procedures designed to ensure a company is managed in the interests of its shareholders Outside parties to whom a debt is owed. An asset whose future benefit is expected to be used up within the next 12 months or within the normal operating cycle e.g. cash, receivables, inventory. A liability due for settlement within the next 12 months or within the normal operating cycle e.g. payables, mortgage payments due within the next year. A liquidity ratio that compares current assets with current liabilities as an indication of the entity’s ability to meet short term debt. The lower this ratio the more likely it is that the entity may not have the resources to meet its short-term debts when they fall due. A gearing ratio that compares total liabilities to total equity as an indication of...