Financial Terms

Financial Reporting Framework (FRF)

It includes accounting principles, standards, and guidelines that must be followed in recording and reporting financial data. It is important for businesses to have a solid understanding of the FRF as it impacts their financial reporting and decision-making processes.

Welcome class, today we will be discussing the important topic of Financial Reporting Frameworks or FRFs. As future financial professionals, it is crucial for you to have a thorough understanding of this concept.

A FRF is essentially a set of rules that serves as a guide for companies in preparing their financial statements. These statements provide valuable insight and transparency into a company's financial health and performance. Think of it as a roadmap that helps businesses accurately record and report their financial data.

The FRF includes various accounting principles, standards, and guidelines that must be followed in order to ensure consistency and accuracy in financial reporting. This is essential for businesses in making informed decisions and maintaining the trust of their stakeholders.

Having a solid understanding of the FRF is

Hive-Off

A common term in finance, hive-off refers to the process of a large corporation dividing off a smaller portion to create a subsidiary. This can be done for various reasons, ...

CRR

Cash Reserve Ratio (CRR) is a vital tool used by the Reserve Bank of India to regulate the liquidity in the banking system. It refers to the minimum percentage of public dep...

NEFT

NEFT, or National Electronic Funds Transfer, plays a crucial role in facilitating the movement of funds between different banks. This system enables individuals to transfer ...

Escrow Account

A third party often holds temporary transactions until the parties involved finalize their agreement. This type of account is then suspended once all necessary formalities h...

Intrinsic Value

Intrinsic value is calculated by analyzing the company's financials, future growth potential, and management. Understanding the true value of a stock is a fundamental conce...

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