Guidelines has been evolving for more than 70 years. Refers to the body of authoritative rules for measuring profit and preparingįinancial statements that are included in financial reports by a business Generally accepted accounting principles (GAAP) The, expected returns must be related only to systematic risks. Only the systematic portion of risk matters in large, well-diversified portfolios. Investment principle that states a firm should accept or reject a project by comparing itĪn extension of cash flow matching that allows for the short-term borrowing ofįunds to satisfy a liability prior to the liability due date, resulting in a reduction in the cost of funding liabilities. The generation of the revenue reported in the income statement. The accounting principle that requires the recognition of all costs that are associated with Will approach the expected value of the experiment. The average outcome for many independent trials of an experiment ![]() ![]() Generating cash inflows exactly equal to cash outflows that are being financed by investment. Last liability to assure all required cash flows.Īlso called horizon matching, a variation of multiperiod immunization and cashįlow matching in which a portfolio is created that is always duration matched and also cash-matched in theĪ bond portfolio management strategy that involves finding the lowest cost portfolio Which the manager matches the maturity of each element in the liability stream, working backward from the That is, revenue, whenever it is reasonable and practicable to do so.Īlso called dedicating a portfolio, this is an alternative to multiperiod immunization in The process of linking recognized revenue to any associatedĬosts, thereby showing the net impact of all transactions related to the recognitionĪn accounting principle that ties expense recognition to revenue recognition,ĭictating that efforts, as represented by expenses, are to be matched with accomplishments, Main Page: financial advisor, business, finance, payroll, investment, tax advisor, financial, inventory, ![]() SEARCH Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. Matching principle - Financial Definition
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