A collection of rules designed to restrict the imagination of accountants. Necessary because when no rules are in place, accountants go wild in their attempts to be reasonable.
Annual report
A compulsory document prepared annually by accountants to describe the brilliant work of top management throughout the year.
Assets
Items listed on a balance sheet, previously on the left, now at the beginning. Some are current, others non-current.
Estimated useful life
The number of years of service of an asset as estimated by accountant, always significantly lower than the real useful life of the asset.
Goodwill
Excess paid above the true value when one business entity purchases another, which accountants consider an asset, even though it represents poor negotiating skills.
Risk statements
Padding at the beginning of an annual report to make it boring to read, and to discourage readers from reaching the financial statements.
All credit for these goes to Grant Tait who lists them at the start of his 2024 book "Fun with accountants"
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