The Advanced Program in Accounting and Auditing Regulation

Albanian / Shqip

GLOSSARY

The Advanced Program in Accounting and Auditing Regulation

TERM / DEFINITION / SOURCE / TRANSLATED TERM
accounting polices / The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements / IAS 8.5 / Politikat e kontabilitetit
accrual basis of accounting / The effects of transactions and other events are recognized when they occur (and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate / IAS 12.5 / Kontabiliteti mbi bazen e konstatimeve
adverse opinion / An adverse opinion is expressed when the effect of a disagreement is so material and pervasive to the financial statement that the auditor concludes that qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements. / IAASB / Opinion i kundërt
annual report / A document issued by an entity, ordinarily on an annual basis, which includes its financial statements together with the auditor’s report there on. / IAASB / Raporti vjetor
asset / A resource:
(a)controlled by an entity as a result of past events; and
(b)from which future economic benefits are expected to flow to the entity. / IAS 38.8, (F.49(a)) / Aktiv
associate / An entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture / IAS 28.2 / Shoqeri e lidhur
audit evidence / All of the information used by the auditor in arriving at the conclusions on which the audit opinion is based. Audit evidence includes the information contained in the accounting records underlying the financial statements and other information / IAASB / Dëshmitë e auditimit
audit firm / A sole practitioner, partnership or corporation or other entity of professional accountants. / IAASB / Firma e auditimit
audit of financial statements / The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all materials respects, in accordance with an applicable financial reporting framework. An audit of financial statements is an assurance engagement (see Assurance engagement) / IAASB / Auditimi i pasqyrave financiare
audit opinion / The auditor’s report contains a clear written expression of opinion on the financial statements. An unqualified opinion is expressed when the auditor concludes that the financial statements give a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. / IAASB / Opinoni i Auditimit
auditor / The engagement partner. The term “auditor” is used to describe either the engagement partner or the audit firm. Where it applies to the engagement partner, it describes the obligations or responsibilities of the engagement partner. Such obligations or responsibilities may be fulfilled by either the engagement partner or a member of the audit team. Where it is expressly intended that the obligation or responsibility be fulfilled by the engagement partner, the term “engagement partner” rather than “auditor” is used. (The term “auditor” may be used when describing related services and assurance engagements other than audits. Such reference is not intended to imply that a person performing a related service or assurance engagement other than an audit need necessarily be the auditor of the entity’s financial statements.) / IAASB / Auditues or Revisor
business combination / The bringing together of separate entities or businesses into one reporting entity. / IFRS 3.A / Kombinim i bizneseve
capital / Under a financial concept of capital, such as invested money or invested purchasing power, the net assets or equity of the entity. The financial concept of capital is adopted by most entities.
Under a physical concept of capital, such as operating capability, the productive capacity of the entity based on, for example, units of output per day. / F.102 / Kapital
carrying amount / The amount at which an asset is recognized after deducting any accumulated depreciation (amortization) and accumulated impairment losses thereon. / IAS 36.6, IAS 16.6, IAS 38.8 / Vlera e mbartur
cash flows / Inflows and outflows of cash and cash equivalents. / IAS 7.6 / Rrjedha e parasë
comparatives / Comparatives in financial statements, may present amounts (such as financial position, results of operations, cash flows) and appropriate disclosures for an entity for more than one period, depending on the framework. The framework and methods of presentation are as follows:
(a)Corresponding figures where amounts and other disclosures for the preceding are included as part of the current period financial statements, and are intended as part of the current period financial statements, and are intended to be read in relation to the amounts of other disclosures relating to the current period (referred to as “current period figures”). These corresponding figures are not presented as complete financial statements capable of standing alone, but are an integral part of the current period financial statements intended to be read only in relationship to the current period figures.
(b)Comparative financial statements where amounts and other disclosures for the preceding period are included for comparison with the financial statements of the current period, but do not form part of the current period financial statements. / IAASB / Të krahasueshmet
consolidated financial statements / The financial statements of a group presented as those of a single economic entity. / IAS 27.4, IAS 28.2 / Pasqyrat financiare të konsoliduara
corporate governance / Describes the role of persons entrusted with the supervision, control and direction of an entity. Those charged with governance ordinarily are accountable for ensuring that the entity achieves its objectives, financial reporting, and reporting to interested parties. Those charged with governance include management only when it performs such functions. / IAASB / Drejtimi i shoqerise aksionere
derivative / A financial instrument or other contract within the scope of this Standard (see paragraphs 2-7) with all three of the following characteristics:
(a)its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’);
(b)it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and
(c)it is settled at a future date. / IAS 39.9 / Instrument financiar derivativ
disclaimer of opinion / A disclaimer of opinion is expressed when the possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements. / Mohim i opinionit
economic life / Either:
(a) the period over which an asset is expected to be economically usable by one or more users; or
(b) the number of production or similar units expected to be obtained from the asset by one or more users. / IAS 17.4 / Jeta ekonomike
effective interest method / The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of the financial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see IAS 18), transaction costs, and all other premiums or discounts. There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably. However, in those rare cases when it is not possible to estimate reliably the cash flows or the expected life of a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments). / IAS 39.9 / Metoda e interesit efektiv
emphasis of matter paragraph / An auditor’s report may be modified by adding an emphasis of matter paragraph(s) to highlight a matter affecting the financial statements which is included in a note to the financial statements that more extensively discuss the matter. The addition of such an emphasis of matter paragraph(s) does not affect the auditor’s opinion. The auditor may also modify the auditor’s report by using an emphasis of matter paragraph(s) to report matters other than those affecting the financial statements / IAASB / Paragrafi mbi theksimin e çështjes
equity / The residual interest in the assets of the entity after deducting all its liabilities. / F.49(c) / Kapitali I vet
equity method / A method of accounting whereby the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee. The profit or loss of the investor includes the investor's share of the profit or loss of the investee. / IAS 28.2 / Metoda e kapitalit neto
external audit / An audit performed by an external auditor / IAASB / Auditim i jashtëm
external auditor / Where appropriate the term “external auditor” is used to distinguish the external auditor from an internal auditor / IAASB / Auditues i jashtëm
fair value / The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. / IAS 2.6, (IAS 16.6), IAS 17.4, IAS 18.7, (IAS 19.7), (IAS 20.3), IAS 21.8, IAS 32.11, (IAS 38.8), IAS 39.9, IFRS 1.A, IFRS 2.A), IFRS 3.A, IFRS 4.A, IFRS 5.A / Vlera e tregut
FIFO (first-in, first-out) / The assumption that the items of inventory that were purchased or produced first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently purchased or produced. / IAS 2.27 / FIFO (i pari brenda, i pari jashtë)
finance lease / A lease that transfers substantially all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred. / IAS 17.4 / Qeraja financiare
financial instrument / Any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity. / IAS 32.11 / Insturument financiar
financial statements / A complete set of financial statements comprises:
(a)balance sheet;
(b)income statement;
(c)a statement showing either:
(i)all changes in equity; or
(ii)changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders;
(d)a cash flow statement; and
(e)notes, comprising a summary of significant accounting policies and other explanatory notes. / IAS 1.8, (F.7) / Pasqyrat financiare
first-time adopter / An entity that presents its first IFRS financial statements. / IFRS 1.A / Adoptues për herë të parë
foreign currency / A currency other than the functional currency of the entity. / IAS 21.8 / Valuta e huaj
functional currency / The currency of the primary economic environment in which the entity operates. / IAS 21.8 / Valuta funksionale
general purpose financial statements / Financial statements prepared in accordance with a financial reporting framework that is designed to meet the common information needs of a wide range of users / IAASB / Pasqyrat financiare me qëllim të përgjithshëm
going concern / The entity is normally viewed as a going concern, that is, as continuing in operation for the foreseeable future. It is assumed that the entity has neither the intention nor the necessity of liquidation or of curtailing materially the scale of its operations. / IAS 1.23-24, F.23 / Parimi i vijimesise or vazhdueshmërisë
goodwill / Future economic benefits arising from assets that are not capable of being individually identified and separately recognized. / IFRS 3.A / Emri i mirë (gudvill)
held-to-maturity investment / Non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity (see Appendix A paragraphs AG16-AG25) other than:
(a)those that the entity upon initial recognition designates as at fair value through profit or loss;
(b)those that the entity designates as available for sale; and
(c)those that meet the definition of loans and receivables.
An entity shall not classify any financial assets as held to maturity if the entity has, during the current financial year or during the two preceding financial years, sold or reclassified more than an insignificant amount of held-to-maturity investments before maturity (more than insignificant in relation to the total amount of held-to-maturity investments) other than sales or reclassifications that:
(i)are so close to maturity or the financial asset's call date (for example, less than three months before maturity) that changes in the market rate of interest would not have a significant effect on the financial asset's fair value;
(ii)occur after the entity has collected substantially all of the financial asset's original principal through scheduled payments or prepayments; or
(iii)are attributable to an isolated event that is beyond the entity's control, is non-recurring and could not have been reasonably anticipated by the entity. / IAS 39.9 / Investimet e mbajtura deri në maturitet
historical cost / Assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. / F.100(a) / Kostoja historike
impairment loss / The amount by which the carrying amount of an asset exceeds its recoverable amount. / IAS 16.6, IAS 36.6, IAS 38.8 / Humbja nga renia ne vlere
income / Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. / F.70(a) / Të ardhurat
interim financial report / A financial report containing either a complete set of financial statements (as described in IAS 1) or a set of condensed financial statements (as described in IAS 34) for an interim period. / IAS 34.4 / Raporti financiar i periudhave te ndermjetme
internal auditor / A person performing an internal audit / IAASB / Auditues i brendshëm
International Financial Reporting Standards (IFRSs) / Standards and Interpretations adopted by the International Accounting Standards Board (IASB). They comprise:
(a)International Financial Reporting Standards;
(b)International Accounting Standards; and
(c)Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC). / IFRS 1.A, IAS 1.11, IAS 8.5 / Standardet Ndërkombëtare të Raportimit Financiar (SNRF)
inventories / Assets:
(a)held for sale in the ordinary course of business;
(b)in the process of production for such sale; or
(c)in the form of materials or supplies to be consumed in the production process or in the rendering of services.
Inventories encompass goods purchased and held for resale including, for example, merchandise purchased by a retailer and held for resale, or land and other property held for resale. Inventories also encompass finished goods produced, or work in progress being produced, by the entity and include materials and supplies awaiting use in the production process. In the case of a service provider, inventories include the costs of the service, as described in paragraph 19, for which the entity has not yet recognized the related revenue (see IAS 18Revenue). / IAS 2.6, IAS 2.8 / Inventaret
joint venture / A contractual arrangement whereby two or more parties undertake an economic activity which is subject to joint control. / IAS 31.3 / Investimet e përbashkëta
lease / An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. / IAS 17.4 / Qeraja
liability / A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. / IAS 37.10, F.49(b / Detyrimet
listed entity / An entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are marketed under the regulations of a recognized stock exchange or other equivalent body / IAASB / Entitet i listuar
loans and receivables / Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than:
(a)those that the entity intends to sell immediately or in the near term, which shall be classified as held for trading, and those that the entity upon initial recognition designates as at fair value through profit or loss;
(b)those that the entity upon initial recognition designates as available for sale; or
(c)those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration, which shall be classified as available for sale.
An interest acquired in a pool of assets that are not loans or receivables (for example, an interest in a mutual fund or a similar fund) is not a loan or receivable. / IAS 39.9 / Huatë dhe llogarite e arkëtueshme
losses / Decreases in economic benefits and as such they are no different in nature from other expenses. / F.79 / Humbjet
modify auditor’s report / An auditor’s report is considered to be modified if either an emphasis of matter paragraph(s) is added to the report or if the opinion than unqualified / IAASB / Modifikim i raportit të audituesit
minority interest / That portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent. / IAS 27.4, IFRS 3.A / Interesi(fitimi) nga filialet I paleve qe nuk jane te zoteruara ne menyre direkte apo indirekte nga pronari
network firm / An entity under common control, ownership or management with the firm or any entity that a reasonable and informed third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or internationally. / IAASB / Firmë e rrjetit