'Anti-social frisbee on the sofa?' Accountancy terms for dummies

Confused about the alphabet soup used in third sector accountancy? David Ainsworth clears up some of the more common terms

Accountancy jargon explained
Accountancy jargon explained

ASB: Not to be confused with the acronym for anti-social behaviour, ASB stands for the Accounting Standards Board, the body that sets accountancy rules in the UK.

Fred 45: No, Fred 45 is not a middle-aged charity accountant in search of a date, but an abbreviation of Financial Reporting Exposure Draft 45, a consultation document issued by the ASB on the FRSPBE - see next item.

FRSPBE: Pronounced "friz'be", this accountancy abbreviation has little in common with the round plastic device thrown in parks. It actually stands for Financial Reporting Standard for Public Benefit Entities, the standard by which third sector organisations must abide.

FRSSE: It sounds like something that happens to your hair when you spend too long in the rain, but is in fact the abbreviation for Financial Reporting Standard for Small Entities.

Net realisable value: This term might sound like the amount of money your charity shop is likely to make from the sale of second-hand curtains, but in fact it is the way organisations calculate the value of assets - usually stock - when the cost of purchase cannot be used.

SoFA: Not to be confused with comfy seating from which to contemplate life, this SoFA actually stands for a charity's Statement of Financial Activities.

UK GAAP: No, it's not the space you should take care to mind between the underground train and platform, renowned the world over, but the abbreviation of UK Generally Accepted Accounting Principles.

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