Tools for CFOs
Glossary

Glossary

35 terms. Where a definition states a rule or a standard, the note links its primary source.

Account reconciliation: Comparing the balance of a ledger account with an independent record, such as a bank statement or a sub-ledger, explaining any difference and keeping the support. A core step of the close.01 Financial close and consolidation
Accountable plan: An employer's reimbursement arrangement under which employees substantiate business expenses and return any excess, described by the IRS in Publication 463.105 Spend and expense management
Accrual: An entry that records an expense or revenue in the period it belongs to before the invoice or cash arrives.01 Financial close and consolidation 03 Accounts payable automation
ASC 606: Topic 606, Revenue from Contracts with Customers, in the FASB's Accounting Standards Codification. The IFRS Foundation notes that it was introduced in May 2014 together with IFRS 15.208 Revenue recognition and billing
Cash application: Matching incoming customer payments to the open invoices they settle, using bank files and remittance advice.10 Accounts receivable and collections
Cash positioning: Gathering the current balance of every bank account, by entity and currency, into one view each day.04 Treasury and cash management
Chart of accounts: The list of ledger accounts a company records transactions against, and the structure that groups them into financial statement lines.09 ERP and general ledger
Consolidation: Combining the financial statements of a parent and the entities it controls into one set of group statements, with intercompany balances eliminated. IFRS 10 sets the principles for IFRS reporters.301 Financial close and consolidation
Days sales outstanding (DSO): A measure of how long customers take to pay, usually receivables divided by revenue over a period, multiplied by the days in the period. Definitions vary by company.10 Accounts receivable and collections
Deferred revenue: Amounts billed or received for goods or services not yet delivered, held as a liability until revenue is recognised.08 Revenue recognition and billing
Dunning: A sequence of reminders sent to a customer about an overdue invoice.10 Accounts receivable and collections
E-invoicing: Exchanging invoices as structured data rather than as PDFs or paper, in some countries through a channel reported to the tax authority.03 Accounts payable automation 06 Tax
EDGAR: The SEC's electronic filing system. Its technical requirements are set out in the EDGAR Filer Manual.411 Financial reporting and disclosure management
Expected credit losses: The estimate of credit losses on financial assets such as receivables, for which IFRS 9 sets the impairment requirements.510 Accounts receivable and collections
FedNow Service: The Federal Reserve's instant payment service, available to depository institutions in the United States.604 Treasury and cash management
Fedwire Funds Service: A real-time gross settlement system operated by the Federal Reserve Banks, through which funds transfers are immediate, final and irrevocable once processed.704 Treasury and cash management
Flux analysis: A review of the change in each account balance between periods, with explanations for movements above a threshold.01 Financial close and consolidation
Form 1099-NEC: The IRS information return used to report nonemployee compensation.803 Accounts payable automation 06 Tax
Form W-9: The IRS form a payee uses to provide a correct taxpayer identification number to a payer who must file an information return.903 Accounts payable automation 12 Procurement
General ledger: The book of accounts from which financial statements are prepared; the centre of an ERP.09 ERP and general ledger
Income tax provision: The current and deferred income tax expense and balances recorded in the financial statements. IAS 12 prescribes the accounting for IFRS reporters.1006 Tax
Inline XBRL: A structured data format that the SEC describes as letting filers prepare a single document that is both human-readable and machine-readable.1111 Financial reporting and disclosure management
Intake: The front door of procurement: one place where employees request a purchase and the request is routed for review and approval.12 Procurement
Intercompany elimination: Removing transactions and balances between entities of the same group when consolidating, so the group reports only dealings with outside parties.01 Financial close and consolidation 09 ERP and general ledger
Internal control over financial reporting (ICFR): The processes that give reasonable assurance that financial statements are reliable. SEC Release 33-8238 adopted the rules on management's report on it.1207 Audit and SOX compliance
Lease accounting: Recording right-of-use assets and lease liabilities for leases. IFRS 16 sets a single lessee accounting model for IFRS reporters.1309 ERP and general ledger
PBC list: "Prepared by client": the list of documents and schedules an auditor asks the company to provide.07 Audit and SOX compliance
Performance obligation: A promise in a contract to transfer a distinct good or service to the customer; the unit to which revenue is allocated under IFRS 15 and Topic 606.208 Revenue recognition and billing
Procure-to-pay: The whole purchasing process from request and purchase order through receipt, invoice and payment; also the name of software suites covering it.12 Procurement 03 Accounts payable automation
Rolling forecast: A forecast that is extended by a period each time a period closes, so it always covers the same span ahead.02 FP&A and planning
Sanctions screening: Checking customers, suppliers and payees against government sanctions lists, such as OFAC's Specially Designated Nationals list.1412 Procurement 04 Treasury and cash management
Separation of duties: Dividing steps of a process, such as creating a supplier and paying it, between different people so that no one person can complete both.07 Audit and SOX compliance 09 ERP and general ledger
Standalone selling price: The price at which a company would sell a good or service separately; used to allocate a contract's price across its performance obligations.08 Revenue recognition and billing
Three-way match: Checking a supplier invoice against both the purchase order and the goods receipt before it is approved for payment.03 Accounts payable automation 12 Procurement
Variance analysis: Comparing actual results with budget or forecast and explaining the differences.02 FP&A and planning

Sources

1Internal Revenue Service. irs.gov/publications/p463. Read 29 October 2026.
2IFRS Foundation. ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/. Read 29 October 2026.
3IFRS Foundation. ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/. Read 29 October 2026.
4U.S. Securities and Exchange Commission. sec.gov/submit-filings/edgar-filer-manual. Read 29 October 2026.
5IFRS Foundation. ifrs.org/issued-standards/list-of-standards/ifrs-9-financial-instruments/. Read 29 October 2026.
6Board of Governors of the Federal Reserve System. federalreserve.gov/paymentsystems/fednow_about.htm. Read 29 October 2026.
7Board of Governors of the Federal Reserve System. federalreserve.gov/paymentsystems/fedfunds_about.htm. Read 29 October 2026.
8Internal Revenue Service. irs.gov/forms-pubs/about-form-1099-nec. Read 29 October 2026.
9Internal Revenue Service. irs.gov/forms-pubs/about-form-w-9. Read 29 October 2026.
10IFRS Foundation. ifrs.org/issued-standards/list-of-standards/ias-12-income-taxes/. Read 29 October 2026.
11U.S. Securities and Exchange Commission. sec.gov/data-research/structured-data/inline-xbrl. Read 29 October 2026.
12U.S. Securities and Exchange Commission. sec.gov/rule-release/33-8238. Read 29 October 2026.
13IFRS Foundation. ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/. Read 29 October 2026.
14Office of Foreign Assets Control, U.S. Department of the Treasury. ofac.treasury.gov/sanctions-list-service. Read 29 October 2026.