FASB Conceptual Framework

Expressions & Definitions ( Interpreted

And Translated Into Arabic)
An Inclusive Paper
By

Ahmed Sobeeh Mohamed El Mahdy.

A Paper Submitted in

Partial Fulfillment of the

Requirements for the Degree of

Master of Accounting.

Under The Supervision

Of

Dr. Sameer Ismael

At

The University of Helwan

Faculty of Commerce

English Section

March.2014
 Glossary

 Introduction Page 3

 Chapter one : Organizations Page 4

 Chapter Two : Structure & Accounting Page 7

 References Page 14

2 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 Introduction

In this paper the researcher will focus on the FASB’s Conceptual Framework Definitions; their meanings

will be explained & translated into Arabic as English now represents the origin of all Knowledge.

FASB’s Conceptual Framework after the international convergence with the International Accounting

standards board “IASB” had introduced some new data into the accounting regime, in this paper the researcher

will try to gather all the definitions stated in the Conceptual Framework – old & new ones – explain it & Translate

it into our Lovely Language , Arabic .

The Definitions will consist of (Organizations FASB, IASB and SEC - Structure definitions i.e., Statement,

Standards – Elements i.e. Assets, Liabilities – Qualitative Characteristics i.e. Faithful representation.

The Researcher chose FASB’s Conceptual Framework definitions as the core of this paper because it is the

most important part in the accounting profession & from it all the standards and other accounting Literature has

emerged.

The Paper will be divided into 2 Major Sectors Organizations - Structure & Accounting Definitions & each

one of them will have sub classifications.

With every definition a brief description will be written, so that it will be easy for whoever reads this

paper to grasp the meaning in a simple & easy way, hoping that this paper helps us all researchers understand the

basics of the FASB’S conceptual Framework.

Accounting Literature presented in this paper is not organized in an alphabetical order, it is organized by

the order the Literature appears in the conceptual framework.

Ahmed Sobeeh

3 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 Chapter One : Organizations

Here we will just demonstrate the organizations involved with Conceptual framework setting & enforcing

1. FASB

a. Full Name: Financial Accounting Standards Board.

b. Location: 401 Merritt 7 - P.O. Box 5116 - Norwalk, Connecticut 06856-5116 – USA.

c. Description: The designated organization in the private sector for establishing standards of
financial accounting that govern the preparation of financial reports by nongovernmental
organizations.

d. Description In Arabic: ‫( مجلس معاٌٌر المحاسبة المالٌة) المنظمة التً تعد معاٌٌر المحاسبة المالٌة و التً تحكم إعداد‬
‫ القطاع الخاص‬- ‫التقارٌر المالٌة من قبل المنظمات االمرٌكٌة غٌر الحكومٌة‬.

2. IASB

a. Full Name: International Accounting Standards Board.

b. Location: 30 Cannon Street - London, P.O EC4M 6XH - United Kingdom.

c. Description: The IASB is the independent standard-setting body of the IFRS Foundation

d. Description in Arabic: ‫مجلس معاٌٌر المحاسبة الدولٌة هو هٌئة مستقلة لوضع معاٌٌر المحاسبة الدولٌة لمؤسسة‬IFRS
(IFRS Foundation).

3. SEC

a. Full Name: U.S Security & Exchange Commission.

b. Location : 100 F Street, NE Washington, DC 20549 , USA

c. Description: The mission of the U.S. Securities and Exchange Commission is to protect investors,
maintain fair, orderly, and efficient markets, and facilitate capital formation.( The reason SEC
stated in this paper is that “standards Issued by FASB are officially recognized as authoritative by
it As well as AICPA”

d. Description in Arabic : ‫ والحفاظ على االسواق‬،‫مهمة لجنة االوراق المالٌة والبورصات االمرٌكٌة هو حماٌة المستثمرٌن‬
‫ وتسهٌل تكوٌن رأس المال (والسبب فى ذكرها هنا هو أن "المعاٌٌر الصادرة عن مجلس معاٌٌر‬،‫ وفعالة‬،‫عادلة ومنظمة‬
‫ المحاسبة المالٌة ٌتم االعتراف بها رسمٌا و اكسابها القوة الملزمة لتطبٌقها من قبل شركات القطاع الخاص من خالل‬AICPA &
SEC "

4. IFRS Foundation

a. Full Name: International Financial Reporting Standards Foundation.

b. Location: 30 Cannon Street - London, P.O EC4M 6XH - United Kingdom.

c. Description: The IFRS Foundation is an independent, not-for-profit private sector organization

working in the public interest, one of its Primary Objectives is o develop a single set of high
quality, understandable, enforceable and globally accepted International Financial Reporting
Standards (IFRSs) through its standard-setting body, the International Accounting Standards
Board (IASB).

4 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 d. Description in Arabic: ‫هى مؤسسة قطاع خاص ال تهدف للربح مستقلة تعمل من أجل المصلحة العامة وٌعتبر واحد من‬
‫ وقابلة للتنفٌذ ومقبولة‬،‫اهم أهدافها األساسٌة تطوٌر مجموعة واحدة ذات جودة عالٌة من معاٌٌر التقارٌر المالٌة الدولٌة مفهومة‬
‫ مجلس معاٌٌر المحاسبة الدولٌة‬- ‫عالمٌا (معاٌٌر التقارٌر المالٌة الدولٌة) من خالل منظمتها لوضع المعاٌٌر‬

5. AICPA

a. Full Name: American Institute of Certified Public Accountants

b. Location: Washington, D.C. - 1455 Pennsylvania Ave., NW - Washington, DC 20004-1081 USA

c. Description: Is the national professional organization of Certified Public Accountants (CPAs) in the
United States, with more than 394,000 members in 128 countries in business and industry, public
practice, government, education, student affiliates and international associates, It sets ethical
standards for the profession and U.S. auditing standards for audits of private companies, non-
profit organizations, federal, state and local governments.

d. Description in Arabic: ‫ الف من األعضاء‬493 ‫ مع أكثر من‬،‫هً منظمة مهنٌة للمحاسبٌن القانونٌٌن فً الوالٌات المتحدة‬
،‫ والشركات التابعة والدولٌة‬،‫ والتعلٌم‬،‫ والحكومة‬،‫ والممارسة المحاسبٌة العامة‬،‫ بلدا فً مجال األعمال والصناعة‬821 ً‫ف‬
‫ والمنظمات غٌر‬،‫وتحدد المعاٌٌر األخالقٌة للمهنة و تضع معاٌٌر المراجعة االمرٌكٌة لمراجعة حسابات الشركات الخاصة‬
‫الهادفة للربح وخالفه‬

6. CAP

a. Full Name: Committee on Accounting Procedure

b. Location: It is Canceled ( No More Existed )

c. Description: was the first private sector organization that had the task of setting accounting
standards in the United States. It was a committee run by the American Institute of Accountants
(now known as the American Institute of Certified Public Accountants. CAP is the predecessor of
the Accounting Principles Board, itself a predecessor to the Financial Accounting Standards Board.
Its formation and activities were early efforts to rationalize and legitimize the reporting of
business performance. However, it is widely regarded as having failed.

d. Description in Arabic : ‫بعد الطلب الحثٌث من هٌئة سوق المال االمرٌكٌة قرر المهد انشاء لجنة االجراءات المحاسبية فى‬
‫ هذه النشرات تعاملت‬. 8919 ‫ الى‬8949 ‫ نشرة فى البحوث المحاسبٌة خالل االعوام من‬18 ‫ وهذه اللجنة اصدرت‬، 8949 ‫عام‬
‫ وضع الحلول للمشاكل التى تظهر – فشلت فى تقدٌم جسد او فحوى عامة‬- ‫مع مشاكل محاسبٌة مختلفة ولكن هذه السٌاسة‬
‫للمعاٌٌر المحاسبٌة ونتٌجة لذلك قرر المعهد انشاء مجلس المعاٌٌر المحاسبٌة المعاٌٌر المحاسبٌة‬Accounting Principles
Board - APB

7. APB

a. Full Name: Accounting Principles Board

b. Location: It is Canceled ( No More Existed )

a. Description: the APB’s mission was twofold: to develop an overall conceptual framework to assist
in the resolution of problems as they become evident and to substantively research individual
issues before the AICPA issued pronouncements. The Board’s official pronouncements, called APB
Opinions, were intended to be based mainly on research studies and be supported by reason and
analysis. Between its inception in 1959 and its dissolution in 1973, the APB issued 31 opinions.
Unfortunately, the APB came under fire early, charged with lack of productivity and failing to act
promptly to correct alleged accounting abuses.

5 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 ‫كانت مهمته هى وضع اطار نظرى عام لٌساعد على حل المشاكل التى ظهرت على السطح بشكل ‪b. Description in Arabic :‬‬
‫كبٌر ولكى ٌتناقش و ٌتبحث بشكل جوهرى قبل ان ٌصدر المعهد تعلٌماته وتصرٌحاته النهائٌة‪.‬‬
‫وتسمى االصدارات الرسمٌة من المجلس"– اراء مجلس المعايير المحاسبية " وتكون هذه االراء قائمة اساسا على الدراسات‬
‫البحثٌة ومسنودة بالمنطق و التحلٌل‪ .‬واثناء الفترة ما بٌن انشائه فى عام ‪ 8919‬و فضه فى عام ‪ 8994‬اصدر المجلس ‪ 48‬رأى‬
‫للمجتمع المحاسبى ولكن لالسف تعرض المجلس للهجوم المبكر‪ ،‬واتهم بقلة االنتاجٌة وعدم التحرك بسرعة لتصحٌح االنتهاكات‬
‫المحاسبٌة المزعومة ولهذا تم الغاء هذا المجلس وانشاء مجلس معاٌٌر المحاسبة المالٌة الحالى ‪.‬‬

‫‪6‬‬ ‫‪Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014‬‬
 Chapter TWO : Structure & Accounting

In this Chapter we will define, illustrate & translate the Expressions stated in the FASB's Conceptual framework.

8. Conceptual Framework

a. Description in English: A conceptual framework establishes the concepts that underlie financial
reporting. A conceptual framework is a coherent system of concepts that flow from an objective.
The objective identifies the purpose of financial reporting. The other concepts provide guidance
on (1) identifying the boundaries of financial reporting; (2) selecting the transactions, other
events, and circumstances to be represented; (3) how they should be recognized and measured;
and (4) how they should be summarized and reported.

b. Description in Arabic: ،، ‫ٌحدد المفاهٌم التى تنظم إعداد التقارٌر المالٌة وهو عبارة عن نظام متماسك ٌنبع من هدف واحد‬
‫ تحدٌد حدود التقارٌر المالٌة‬-8 ‫هذا الهدف ٌحدد الغرض الرئٌسى من التقارٌر المالٌة اما المفاهٌم االخرى بداخله فتوفر ارشاد ل‬
‫ كٌف سٌتم‬-3 .‫ كٌف سٌتم تنظٌم هذه العملٌات واالعتراف بها وقٌاسها‬-4 ‫ اختٌار العملٌات واالحداث التى سٌتم تسجٌلها‬-2
.‫تجمٌعها واالقرار عنها‬

9. SFAC

a. Full Name: Statement of Financial Accounting Concepts

b. Description in English: A document issued by the Financial Accounting Standards Board (FASB)
covering broad financial reporting concepts. The purpose of the SFAC document is to provide a
general overview of accounting concepts, definitions and ideas. It is seen as a prelude to the
statement of financial accounting standards.

c. Description in Arabic: ‫(بيان مفاهيم المحاسبة المالية) وثٌقة صادرة عن مجلس معاٌٌر المحاسبة المالٌة تغطً مفاهٌم‬
‫واسعة وعرٌضة عن التقارٌر المالٌة والغرض من هذه الوثٌقة هو توفٌر لمحة عامة عن مفاهٌم المحاسبة والتعرٌفات واألفكار‬
‫ وٌعتبر ذلك تمهٌدا إلصدار معاٌٌر المحاسبة المالٌة‬.‫المتعلقة بها‬

d. ‫ ألنها‬3 ‫ مع عدم وجود رقم‬1 ‫ الى‬8 ‫ من هذه الوثائق حتى االن وهم ما ٌمثلون االطار المفاهٌمى االمرٌكً من‬9 ‫تم اصدار‬
‫ تخص المنظمات غٌر التجارٌة‬Nonbusiness Organizations

10. Standards

a. Description in English: A principle guides and standardizes accounting practices. Accounting

standards are necessary so that financial statements are meaningful across a wide variety of
businesses; otherwise, the accounting rules of different companies would make comparative
analysis almost impossible.

b. Description in Arabic: ‫هو ما ٌوجه وٌنظم الممارسه المحاسبٌة بشكل عام وهى ضرورٌة حتى ٌكون للقوائم المالٌة معنى‬
‫عبر عدد كبٌر مختلف من االنشطة واال ستنعدم المقارنة بٌن الشركات تماما‬

11. BASIC OBJECTIVE of financial reporting.

a. Description in English: The objective of general-purpose financial reporting is to provide financial

information about the reporting entity that is useful to present and potential equity investors,
lenders, and other creditors in making decisions about providing resources to the entity.

b. Description in Arabic: ‫الهدف من التقارٌر المالٌة هو تزودالمستثمرٌن الحالٌٌن والمتوقعٌن والمقرضٌن والدائنٌن‬
.‫بمعلومات مالٌة مفيده لتساعدهم فى اتخاذ القرارت االستثمارٌه و قرارات االقتراض والتموٌل‬

12. Qualitative Characteristics (SFAC No. 2 )

7 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 a. Description in English: (Fundamental & Enhancing) Guidelines that an accountant must follow
based on FASB rulings by which a company choose an acceptable accounting method, the amount
and types of information to disclose, and the format in which to present it.

b. Description in Arabic: ‫ هى الخطوط العرٌضه التى ٌجب ان‬- ‫ وتنقسم الى قسمٌن اساسٌة وتحسٌنٌة‬- )‫(الصفات النوعٌة‬
‫ٌتبعها المحاسب عند اختٌاره طرٌقه ادائه لتسجٌل المعلومات المحاسبٌة من خالل كمٌة المعلومات المطلوبه وكٌفٌه اٌضاحها‬
.‫وكٌفٌه اعدادها للعرض بالقوائم‬

13. Relevance

a. Description in English: Relevance is one of the two fundamental qualities that make accounting
information useful for decision-making. To be relevant, accounting information must be capable
of making a difference in a decision. Information with no bearing on a decision is irrelevant

b. Description in Arabic: ‫ ولكى تكون المعلومة مناسبه‬،‫هى االولى من الخاصٌتٌن االساسٌتٌن لجودة المعلومات المحاسبٌة‬
.‫او ذات صله ٌجب ان تكون قادرة على صنع فارق فى اتخاذ القرار فالمعلومات التى لن تؤثر على اتخاذ القرار التكون مناسبه‬

14. Predictive value (Ingredient Of Relevance)

a. Description in English: Financial information has predictive value if it has value as an input to
predictive processes used by investors to form their own expectations about the future.

b. Description in Arabic: ‫المعلومات المالٌه ٌكون لها قيمة تنبؤية اذا كان لها قٌمة مستخدمة فى عملٌات التنبؤ التى ٌقوم بها‬
.‫المستثمرٌن لٌكونوا توقعاتهم الخاصه عن المستقبل‬

15. Confirmatory value (Ingredient Of Relevance)

a. Description in English: Relevant information also helps users confirm or correct prior
expectations.

b. Description in Arabic: ‫( قيمه تأكيديه ) بعد التنبؤ تاتى المعلومات المناسبه لتؤكد او تصحح المعلومات التى تم التنبؤ بها‬

16. Materiality (Ingredient Of Relevance)

a. Description in English: In short, it must make a difference or a company need not disclose it.

b. Description in Arabic: ‫ اجماال اذا لم تصنع المعلومة فارق ال ٌجب على الشركة االفصاح عنها‬: ‫االهمية النسبية‬

17. Faithful Representation

a. Description in English: One of the two fundamental qualities that make accounting information
useful for decision-making, means that the numbers and descriptions match what really existed
or happened.

b. Description in Arabic: ‫ ومعناها ان‬،‫التمثيل الصادق هى الثانٌة من الخاصٌتٌن االساسٌتٌن لجودة المعلومات المحاسبٌة‬
‫توافق المعلومات المطروحه ( ارقام و افصاحات) ما حدث على ارض الواقع‬

18. Completeness(Ingredient Of Faithful Representation )

a. Description in English: means that all the information that is necessary for faithful representation
is provided.

8 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 b. Description in Arabic: ‫االكتمال وهو ان تكون كل المعلومات الالزمة لتكون المعلومات ممثله بصدق عن واقع الشركة‬
.‫متوفرة ومعروضه‬

19. Neutrality (Ingredient Of Faithful Representation )

a. Description in English: a company cannot select information to favor one set of interested parties
over another.

b. Description in Arabic: ‫الحياد ان تكون الشركة محاٌده فى عرض المعلومات وال تعرض معلومات تصب فى مصلحه احد‬
‫االطراف دون عن االخرٌن‬

20. Free From Error (Ingredient Of Faithful Representation )

a. Description in English: An information item that is free from error will be a more accurate
(faithful) representation of a financial item.

b. Description in Arabic: ‫المعلومة الدقيقة الخالية من الخطأ هى افضل طرٌق لتحقٌق التمثٌل الصادق لحال الشركة‬

21. Comparability

a. Description in English: is one of the four Enhancing qualities that make accounting information
useful for decision-making Information that is measured and reported in a similar manner for
different companies & Different years (consistency) , is considered comparable.

b. Description in Arabic: ‫ المعلومات التى تم‬، ‫ صفات نوعٌة تحسٌنٌة للمعلومات المحاسبٌة‬3 ‫القابلٌة للمقارنة واحدة من‬
‫قٌاسها وادراجها فى التقارٌر المالٌة بطرٌقه مشابهه للشركات االخرى والسنوات السابقه ( االتساق وهو نوع اخر من القابلٌة‬
‫للمقارنة) تكون قابله للمقارنه‬

22. Verifiability

a. Description in English: is one of the four Enhancing qualities that make accounting information
useful for decision-making, occurs when independent measurers, using the same methods, obtain
similar results.

b. Description in Arabic: ‫ وتحدث عند استخدام‬، ‫ صفات نوعٌة تحسٌنٌة للمعلومات المحاسبٌة‬3 ‫القابلية للتحقق واحدة من‬
‫مقاٌٌس مستقلة (مراجع خارجى مثال ) باستخدام نفس االسالٌب ونصل فى النهاٌة الى نفس النتائج‬

23. Timeliness

a. Description in English: is one of the four Enhancing qualities that make accounting information
useful for decision-making, having information available to decision-makers before it loses its
capacity to influence decisions.

b. Description in Arabic: ‫ وتتحقق عند توفٌر‬، ‫ صفات نوعٌة تحسٌنٌة للمعلومات المحاسبٌة‬3 ‫التوقيت المناسب واحدة من‬
‫المعلومات المحاسبٌة لمتخذى القرار قبل ان تفقد قٌمتها فى التأثٌر على القرارات‬

24. Understandability

a. Description in English: is one of the four Enhancing qualities that make accounting information
useful for decision-making, is the quality of information that lets reasonably informed users see
its significance. Understandability is enhanced when information is classified, characterized, and
presented clearly and concisely.

9 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 b. Description in Arabic: ً‫ وهى الصفة نوعٌة الت‬، ‫ صفات نوعٌة تحسٌنٌة للمعلومات المحاسبٌة‬3 ‫القابلية للفهم واحدة من‬
،‫ وتتمٌزها‬،‫ ومما ٌعزز الفهم لدٌهم هو تصنٌف المعلومات‬.‫تسمح للمستخدمٌن ذوى الفكر المستنٌر رؤٌة أهمٌة المعلومات‬
‫وتقدٌمها بوضوح ودقة‬.

25. ASSETS

a. Description in English: Probable future economic benefits obtained or controlled by a particular

entity as a result of past transactions or events.

b. Description in Arabic: ‫االصول اى منفعه اقتصادٌه مستقبلٌه محتمله للشركه تنتج عن معامالت مالٌه سابقه وتتحكم بها‬
‫الشركة وٌكون لها كامل التصرف االدارى علٌها‬

26. LIABILITIES

a. Description in English: Probable future sacrifices of economic benefits arising from present
obligations of a particular entity to transfer assets or provide services to other entities in the
future as a result of past transactions or events.

b. Description in Arabic: ‫االلتزامات هى اى تضحٌات اقتصادٌه مستقبلٌه محتمله للشركه تنتج عن معامالت مالٌه سابقه من‬
‫خالل تحوٌل لالصول الى الشركه او تقدٌم اى شركه اخرى خدمات للشركه او التزام الشركة بتقدٌم خدمات مستقبلٌه لشركة‬
.‫اخرى‬

27. EQUITY

a. Description in English: Residual interest in the assets of an entity that remains after deducting its
liabilities. In a business enterprise, the equity is the ownership interest.

b. Description in Arabic: ‫ بمعنى اخر‬، ‫حقوق الملكية القٌمه المتبقٌه من كل اصول الشركه بعد خصم كل االلتزامات علٌها‬
.‫هو التزام على الشركه ناحٌه حاملى اسهمها‬

28. INVESTMENTS BY OWNERS

a. Description in English: Increases in net assets of a particular enterprise resulting from transfers to
it from other entities of something of value to obtain or increase ownership interests (or equity)
in it. Assets are most commonly received as investments by owners, but that which is received
may also include services or satisfaction or conversion of liabilities of the enterprise.

b. Description in Arabic: ( ‫استثمارات حاملى االسهم هى زٌاده ممتلكات الشركه من خالل تبادل مع احد مالك الشركه‬
‫ من الممكن ان ٌسدد التزام‬، ‫اعطى الشركه ماال او اصل ما)ولكن لٌس بالضرورة ان ٌكون القٌمة المستلمة من المالك اصل‬
‫ هذا االستثمار ٌعتبر التزام على الشركه لمالكها‬،‫على الشركة او ٌقدم لها خدمه معٌنة‬

29. DISTRIBUTIONS TO OWNERS

a. Description in English: Decreases in net assets of a particular enterprise resulting from

transferring assets, rendering services, or incurring liabilities by the enterprise to owners.
Distributions to owners decrease ownership interests (or equity) in an enterprise.

b. Description in Arabic: ‫عكس االستثمارات حٌث ٌحدث التوزٌع للمالك كتسوٌه لمدٌونٌات الشركه لهم من خالل ارباح مستحقه لهم وخالفه وهذا‬
.‫التوزٌع ٌقلل من حقوق الملكٌه‬

30. COMPREHENSIVE INCOME

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 a. Description in English: Change in equity (net assets) of an entity during a period from
transactions and other events and circumstances from nonowner sources. It includes all changes
in equity during a period except those resulting from investments by owners and distributions to
owners.

b. Description in Arabic: ‫الدخل الشامل هو التغٌر فى صافى اصول الشركة ( حقوق الملكٌة ) الناتج من كل العملٌات‬
‫الخاصه بالمنشأه ماعدا العملٌات الخاصه بمالكى االسهم مثل ربح موزع على المساهمٌن وخالفه‬

31. REVENUES

a. Description in English: Inflows or other enhancements of assets of an entity or settlement of its

liabilities (or a combination of both) during a period from delivering or producing goods,
rendering services, or other activities that constitute the entity’s ongoing major or central
operations.

b. Description in Arabic: ‫االيرادات هى زٌاده اصول او نقصان لاللتزامات او كالهما خالل السنة المالٌة كنتٌجه لتسلٌم‬
‫بضاعه او اداء خدمه او اى انشطة اخرى والتى تمثل عملٌات الشركة االساسٌه‬

32. EXPENSES

a. Description in English: Outflows or other using up of assets or incurrences of liabilities (or a

combination of both) during a period from delivering or producing goods, rendering services, or
carrying out other activities that constitute the entity’s ongoing major or central operations.

b. Description in Arabic: ‫المصروفات اى تدفق خارج لالصول او حدوث التزام على الشركه او كالهما خالل السنة المالٌة‬
‫كنتٌجه تسلٌم بضاعه للشركه او تقدٌم خدمه للشركهوالتى تدخل ضمن النشاط االساسى للشركه‬

33. GAINS

a. Description in English: Increases in equity (net assets) from peripheral or incidental transactions
of an entity and from all other transactions and other events and circumstances affecting the
entity during a period except those that result from revenues or investments by owners.

b. Description in Arabic: ‫المكاسب هى الزٌاده فى حقوق الملكٌه التى تنتج عن العملٌات العرضٌه التى لٌس لها عالقه باٌراد‬
.‫النشاط االساسى للشركه او بمالكى الشركه‬

34. LOSSES

a. Description in English: Decreases in equity (net assets) from peripheral or incidental transactions
of an entity and from all other transactions and other events and circumstances affecting the
entity during a period except those that result from expenses or distributions to owners.

b. Description in Arabic: ‫الخسائر هى نقصان فى حقوق الملكٌه التى تنتج عن العملٌات العرضٌة التى لٌس لها عالقه‬
‫بمصروفات النشاط االساسى للشركه او بمالكى الشركه‬.

35. Economic Entity Assumption

a. Description in English: means that economic activity can be identified with a particular unit of
accountability. In other words, a company keeps its activity separate and distinct from its owners
and any other business unit.

b. Description in Arabic: ‫للمشروع شخصية معنوية مستقلة اى انه ٌمكن فصل انشطته عن مالكه وٌكون وحده محاسبٌة‬
‫مستقلة عن مالكه وعن اى وحدة اخرى‬

36. Going Concern Assumption

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 a. Description in English: Most accounting methods rely on the going concern assumption —that
the company will have a long life.

b. Description in Arabic: ‫االستمرارية المنشأة وجدت لتستمر فً ممارسة نشاطها العادي لفترة زمنٌة غٌر محددة‬

37. Monetary Unit Assumption

a. Description in English: The monetary unit assumption means that money is the common
denominator of economic activity and provides an appropriate basis for accounting measurement
and analysis.

b. Description in Arabic: ‫افتراض وحدة القياس وجود وحدة قٌاس موحدة تربط بٌن مختلف العملٌات وتكون دائما العملة‬
‫المحلٌة للدولة الموجود بها الشركة وتكون االساس للقٌاس والتحلٌل المحاسبى‬

38. Periodicity Assumption

a. Description in English: Implies that a company can divide its economic activities into artificial
time periods. These time periods vary, but the most common are yearly.

b. Description in Arabic: ‫افتراض الفترة المحاسبية هو ان تقسم الشركة انشطتها الى فترات زمنٌة متساوٌة وتختلف من‬
‫شركة الى اخرى ولكن فى الغالب تكون سنة مٌالدٌة‬

39. Measurement Principle

a. Description in English: How to Measure the financial events, we presently have a “mixed-
attribute” system that permits the use of various measurement bases. The most commonly used
measurements are based on historical cost and fair value.

b. Description in Arabic: – ‫مبدأ القياس هو كٌفٌة قٌاس العملٌات المحاسبٌة واالن لدٌنا نظام قٌاس مختلط "التكلفة التارٌخٌة‬
.‫القٌمة العادلة" وهما اكثر انظمة القٌاس شٌوعا‬

40. Fair value

a. Description in English: the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.

b. Description in Arabic: )‫القيمة العادلة هو السعر الذي ٌمكن الحصول علٌه من بٌع اصل أو لتسوٌة التزام (سعر الخروج‬
‫ فً تارٌخ القٌاس‬،‫فً معاملة منتظمة بٌن المشاركٌن فً السوق‬

41. Revenue Recognition Principle

a. Description in English: A crucial question for many companies is when to recognize revenue.
Revenue recognition generally occurs (1) when realized or realizable and (2) when earned. This
approach has often been referred to as the revenue recognition principle.

b. Description in Arabic: ‫مبدأ االعتراف بااليراد هو كٌف تعترف الشركة بارٌادتها ومتى وٌتم االعتراف باالٌراد عامة اذا‬
.‫تحقق شرطان االول هو ان ٌتم التعرف علٌه والثانى ان ٌكون مستحق‬

42. Expense Recognition Principle

a. Description in English: Companies recognize expenses not when they pay wages or make a
product, but when the work (service) or the product actually contributes to revenue.

b. Description in Arabic: ‫مبدأ االعتراف بالمصروف هو انه ال ٌتم االعتراف بالمصروف لمجرد انه تم ولكن ٌتم االعتراف‬
.‫به عند مشاركته فى الحصول على االٌراد‬

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 43. Full Disclosure Principle

a. Description in English: providing information that is of sufficient importance to influence the

judgment and decisions of an informed user.

b. Description in Arabic: ‫مبدأ االفصاح التام هو توفٌر المعلومات التً لها أهمٌة كافٌة للتأثٌر على حكم وقرارات المستخدم‬
.‫الذى على علم بها‬

44. Cash basis

a. Description in English: Company records events that change its financial statements in the
periods in which it receives or pays cash.

b. Description in Arabic: ، ‫االساس النقدى حٌث ٌتم االفصاح فى القوائم المالٌة عن المقبوضات النقدٌة التً قبضت فعالا‬
‫ بصرف النظر عما إذا كانت هذه المقبوضات و النفقات تخص السنة الحالٌة أو‬، ‫والنفقات النقدٌة التً دفعت فعالا خالل السنة‬
.‫ فالعبرة بما تم قبضه وما تم إنفاقه فعالا‬، ‫سنة سابقة أو سنة الحقة‬

45. Accrual basis

a. Description in English: It ensures that a company records events that change its financial
statements in the periods in which the events occur, Using the accrual basis to determine net
income means that a company recognizes revenues when it provides the goods or services rather
than when it receives cash.

b. Description in Arabic: ‫مبدأ االستحقاق وٌعتبر اإلٌراد قد تحقق عندما تنتقل ملكٌة السلعة أو األصل من المنشاة إلى‬
.)) ‫ سواء حٌصلت قٌمتها النقدٌة أم ال (( أي أن اإلٌراد ٌخص الفترة المحاسبٌة التً تحقق خاللها‬، ‫المشتري او عند تقدٌم الخدمة‬

46. Financial Statements

a. Description in English: are the balance sheet, income statement, statement of cash flows, and
statement of owners’ equity. They are a structured means of communicating financial
information.

b. Description in Arabic: ‫ قائمة الدخل – قائمة التدفقات النقدٌة وقائمة‬-) ‫القوائم المالية وهى المٌزانٌة ( المركز المالى‬
.‫التغٌر فى حقوق الملكٌة وهى الوسائل االساسٌة فى توفٌر المعلومات المحاسبٌة‬

47. Cost Constraint

a. Description in English: The Company must weigh the costs of providing the information against
the benefits that can be derived from using it.

b. Description in Arabic: ‫قيد التكلفة اى شركة ٌجب ان تقٌم مصروفات توفٌر المعلومات وتقارنها بالمنافع المستمدة منها‬

48. Industry Practices

a. Description in English: The peculiar nature of some industries and business concerns sometimes
requires departure from basic theory.

b. Description in Arabic: ً‫قيد الممارسات الصناعية الطبٌعة الخاصة لبعض الصناعات واالولوٌات التجارٌة ٌتطلب ف‬
‫بعض األحٌان خروجا عن النظرٌة األساسٌة‬.

13 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014
 References

1. http://www.fasb.org.

2. http://www.ifrs.org

3. http://www.sec.gov/

4. http://www.aicpa.org/

5. Kieso, Weygandt and Warfield, Intermediate Accounting 14th Edition.

6. FASB Conceptual Framework.

14 Definitions Translation Research - Faculty of Commerce - Helwan University - English Section- 2014