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Glossary entry

Italian term or phrase:

competenza economica e temporale

English translation:

matching and accrual principles

Added to glossary by Anna ZANNELLA
Apr 16, 2013 16:45
11 yrs ago
6 viewers *
Italian term

competenza economica e temporale

Italian to English Bus/Financial Business/Commerce (general) Financial statements
Costi e ricavi
Sono esposti secondo il principio della prudenza e della *competenza economica*.

I need to ask this again. It is in the Proz dictionary as meaning an accrual basis of accounting - though there appears to be some contention about this being an outdated US term. Current new accounting stand alone UK term?

I've seen the entry *competenza economica e temporale" = "matching and accruals" (basis of accounting)
Thanks.
Proposed translations (English)
4 matching and accrual principles
4 -1 matching principles and accruals basis

Discussion

FinWord Apr 16, 2013:
Sorry Menander for the purpose of your sentence, in my view, prudence and matching could probably work just fine. For the purpose of this discussion, the concept of competenza seems to have gone astray...
James (Jim) Davis Apr 16, 2013:
Post! I have a deadline for tomorrow morning.
FinWord Apr 16, 2013:
accruals (and competenza) goes beyond the concept ...of matching. When do we recognise income? When do we recognise a cost that is not associated with revenue? When do we recognize a potential liability (prudence plays here also).
James (Jim) Davis Apr 16, 2013:
Finword says you can't because one is inside the other.
Anna ZANNELLA (asker) Apr 16, 2013:
Thanks Jim I need to split them up ...
FinWord Apr 16, 2013:
If you are looking to read up on the subject, this is probably as good a place as any to start (http://ec.europa.eu/internal_market/accounting/docs/markt-19... see 26-33. Although published 8 years ago, the discussion should give you some insights. For further relevant research, you might want to also look up timing, matching and revenue recognition.
FinWord Apr 16, 2013:
most accounting is on an accruals basis (vs. cash). Competenza economica/temporale relates to the principle of matching costs with revenues (i.e. costs of goods recognized in same period product is sold and revenue recognized) or recognizing a cost, for example, in the period incurred (i.e., vesting portion of stock option plan)...e non solo!

Proposed translations

1 hr
Selected

matching and accrual principles

Peer comment(s):
agree Peter Cox
8 hrs
thank you Peter!
disagree Giunia Totaro : Answer not correct.
108 days
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "thanks"
-1
1 hr

matching principles and accruals basis

I'll leave you to get round the problem of the repetition with the principle of prudence.

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Note added at 2 hrs (2013-04-16 19:00:02 GMT)
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The costs must match the earnings "competenza economica" and the obligation of the expense and the recognition of the revenue must both match the same time period, "competenza temporale" all of which matching principles taken together culminate in accrual accounting. OK it isn't perfect, but how are you going to do it.

To quote from your reference:
"While there are no divergencies in interpreting the accrual concept, no unique interpretation of matching exists. The principle of matching is often understood as the practice of allocating expenditure to the related income."
It clearly considers the two separately as does my post even if one (matching principle) is considered as embodied in the other and in my view are often totally blended with each other. "People and children" "animals and birds" "buildings and houses".
However, you have thrown down the gauntlet: post!
Peer comment(s):
disagree FinWord : matching is a subset of accruals. With respect Jim, horrible solution//no seriously
5 mins
You are being finicky.
agree CristianaC
13 mins
disagree Giunia Totaro : Answer not correct.
108 days
Something went wrong...
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