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Global

Terms starting with

G

Group Accounting

Group accounting involves managing and reporting financial information for a parent company and its subsidiaries as a single entity. It includes consolidation, intercompany eliminations, and…

Gain Realisation Principle

The gain realisation principle states that revenue or gains should only be recognised when they are earned and realised, typically through a transaction. This ensures…

Gross Working Capital

Gross working capital refers to the total value of a company’s current assets, including cash, receivables, and inventory. It indicates the resources available for day-to-day operations. Managing…

Government Accounting

Government accounting focuses on recording and reporting financial transactions of public sector entities. It emphasises accountability, transparency, and compliance with budgets and regulations rather than…

Global Consolidation

Global consolidation refers to the process of combining financial data from international subsidiaries into a single reporting structure. It involves currency conversion, elimination of intercompany…

Guarantee Liability

Guarantee liability arises when a company commits to covering another party’s financial obligation if they default. It is recognised when the obligation is probable and…

Growth Rate (Financial)

Growth rate in accounting measures the rate at which a company’s revenue, profit, or assets increase over a period. It is typically expressed as a…

Gross Receipts

Gross receipts represent the total cash or revenue a business receives from all sources before deducting any expenses, returns, or allowances. It provides a broad measure of…

Grant Income

Grant income refers to funds received from governments or organisations to support specific activities or projects. It is recognised as income based on compliance with…

Goods Available for Sale

Goods available for sale represent the total inventory a business has during a period, including beginning inventory and purchases. This figure is used to calculate…

Global Accounting Standards

Global accounting standards are internationally recognised frameworks, such as IFRS, that guide financial reporting across countries. They aim to harmonise accounting practices, ensuring consistency and…

Generation Cost

Generation cost refers to the total cost incurred to produce goods or services, including raw materials, labour, and overheads. It helps businesses determine pricing, profitability, and efficiency.…

General Journal

The general journal is the primary book of original entry where all financial transactions are first recorded in chronological order. Each entry includes debits, credits,…

Gain Contingency

Gain contingency refers to a potential financial gain that depends on the outcome of a future uncertain event, such as a lawsuit or insurance claim.…

Goods and Services Tax (GST)

A 10% broad-based consumption tax applied to most goods and services in Australia. Businesses registered for GST must report input tax credits and GST collected…

Gift Aid

A UK tax relief mechanism allowing charities to reclaim basic-rate income tax on donations made by UK taxpayers, increasing the value of donations, a concept unique…

Generally Accepted Accounting Principles (GAAP)

The standardized set of rules and procedures issued by the Financial Accounting Standards Board (FASB) that US public companies must follow when preparing financial statements.

Group Financial Statements

Group financial statements present the consolidated financial position and performance of a parent company and its subsidiaries as a single economic entity. They eliminate intercompany…

Gross Operating Profit

Gross operating profit represents earnings generated from core business operations before interest, taxes, and non-operating items. It focuses on operational efficiency by excluding financing and…

Government Grants

Government grants are financial assistance provided by public authorities to support specific business activities or investments. In accounting, grants are recognized based on compliance with…

Gearing Ratio

The gearing ration measures how much of a company's operations are funded through debt compared to equity. It helps assess financial risk and capital structure.…

Gain on Sale of Asset

Gain on Sale of Asset refers to the profit realised when a fixed asset is sold for more than its book value. The gain is…

Green Accounting

Green accounting, or environmental accounting, integrates environmental costs into financial reporting. It tracks expenses and benefits related to sustainable practices, resource consumption, pollution control, and…

Gratuity

Gratuity is a statutory payment made by employers to employees as a reward for long-term service. It is typically paid at the time of retirement,…

Gross Fixed Assets

Gross fixed assets represent the total value of a company’s tangible assets before depreciation. This includes buildings, machinery, vehicles, and equipment used for business operations.…

Grant Accounting

Grant accounting involves tracking, managing, and reporting funds received through grants, typically from governments, institutions, or non-profits. It ensures that funds are used according to…

Gross Book Value

The original cost of a fixed asset before any depreciation is deducted. It reflects the purchase price and installation costs. Gross book value is used…

Goods in Transit

Inventory that has been shipped by the seller but not yet received by the buyer. Depending on shipping terms (FOB shipping point or destination), the…

Gross Sales

Gross sale is the total unadjusted sales revenue a business earns before returns, discounts, or allowances. It gives a top-line figure of total activity but…

Gross Profit

Gross profit is the difference between revenue and the cost of goods sold (COGS). It shows how much money a business makes from its core…

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