As Part of Its Disclosure Initiative, Why Is the IASB

question 5

Essay

As part of its disclosure initiative, why is the IASB looking at the definitions of accounting policies and accounting estimates?

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Definitions:

Incentive Compensation

A form of performance-based pay where employees receive additional compensation for meeting or exceeding targets or metrics.

Balanced Scorecard

A strategic planning and management system used for aligning business activities to the vision and strategy of the organization, improving internal and external communications, and monitoring organizational performance against strategic goals.

Inspection Time

The amount of time dedicated to examining and verifying the quality of products or materials.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, adding value beyond the cost of the raw materials.