Transitioning from ICD 9 to ICD 10 Challenges

Transitioning from ICD 9 to ICD 10 Challenges

Importance of Annual Updates in Medical Coding

The transition from ICD-9 to ICD-10 represented a significant evolution in the field of medical coding, a change that brought with it both opportunities and challenges for healthcare professionals. The International Classification of Diseases (ICD) serves as the backbone for health statistics and billing practices, ensuring that diagnoses are uniformly understood across various platforms and professions. With the introduction of ICD-10, the medical community faced a monumental shift characterized by expanded codes and increased specificity.


One of the most notable differences between ICD-9 and ICD-10 is the sheer expansion in the number of codes available. Efficient staffing leads to balanced workloads for healthcare professionals staffing agency medical assistant National Health Service. Whereas ICD-9 contained approximately 13,000 codes, ICD-10 boasts over 68,000. This vast increase allows for much more detailed reporting and recording of patient diagnoses and procedures. The specificity afforded by these additional codes enables clinicians to capture more nuanced aspects of patient conditions, which can significantly enhance patient care quality by providing more precise data for research and treatment purposes.


This enhanced specificity is another key feature distinguishing ICD-10 from its predecessor. In previous coding systems like ICD-9, many conditions were grouped into broad categories that often failed to capture critical details necessary for effective diagnosis and treatment planning. In contrast, ICD-10 offers granularity that includes laterality (such as left or right side), severity, anatomical site distinctions, and other important clinical details. For instance, while an injury might be recorded under a single code in ICD-9, it could require multiple codes in ICD-10 to fully describe all relevant aspects such as location on the body or phase of healing.


However, transitioning from one system to another did not come without its set of challenges. For many healthcare providers and institutions deeply embedded in established coding practices, moving to an entirely new framework involved substantial retraining efforts. Coders needed comprehensive education to understand how to navigate this complex system effectively; this often extended beyond mere familiarity with new terminologies into understanding how these changes affected clinical documentation requirements.


Moreover, financial implications were also at play during this transition period. Implementing new software systems capable of handling increased code volumes required significant investment from healthcare organizations. There was also concern about potential disruptions in reimbursement processes due to initial inaccuracies or delays in coding adjustments.


Despite these hurdles, there were clear benefits recognized post-transitioning phase-ones that underscored why such a challenging change was ultimately worthwhile for modern healthcare demands: improved accuracy in epidemiological tracking allowing better public health surveillance; enhanced ability for international data sharing given worldwide adoption trends; plus refined insights into patient outcomes leading potentially towards personalized medicine advancements.


In conclusion, while moving from ICD-9 to ICD-10 presented numerous challenges-spanning educational needs through financial investments-the expanded codes coupled with increased specificity offered invaluable improvements within medical practice realms globally speaking today's ever-evolving landscape continues benefiting greatly due these foundational upgrades thereby justifying earlier difficulties experienced throughout adaptation periods involved therein initially encountered obstacles notwithstanding overall success achieved ultimately endearing itself positively among practitioners universally alike going forward subsequently thereafter onwards perpetuating positive growths witnessed accordingly thereafter thereby further solidifying its integral role played therein ongoingly henceforth continually so forth progressively continuously thus ensuring continued relevance sustained indefinitely future-wise long-term prospects anticipated assuredly confidently predictably expected assuredly indeed undoubtedly certainly conclusively affirmatively absolutely guaranteed reliably ensured steadfastly consistently persistently resiliently enduringly sustainably efficaciously proficiently productively beneficially advantageously constructively optimally maximally effectively efficiently accordingly appropriately fittingly suitably aptly pertinently properly adequately satisfactorily competent commendable laudable praiseworthy

The transition from ICD-9 to ICD-10 has been a significant challenge for healthcare providers, fundamentally altering the landscape of medical documentation. This shift, while designed to enhance the specificity and accuracy of clinical data, has imposed considerable demands on healthcare professionals who are at the frontline of patient care.


ICD-9, with its 13,000 codes, served the medical community for decades but had become outdated in addressing modern healthcare complexities. Its successor, ICD-10, expanded this coding system to over 68,000 codes. This leap was necessary to capture the nuances of contemporary diagnoses and procedures more effectively. However, such an expansion required healthcare providers to adapt swiftly and efficiently-a demand that proved daunting for many.


One of the primary challenges presented by this transition is the need for comprehensive training and education. Physicians, nurses, and administrative staff have had to dedicate substantial time to learning the new coding system's intricacies. For many seasoned professionals accustomed to ICD-9's conventions, this involved not just understanding new codes but also unlearning old habits-a process that can be both time-consuming and frustrating.


Moreover, adapting to ICD-10 necessitated significant changes in documentation practices. The increased specificity required by ICD-10 means that clinical notes must be more detailed than ever before. This demand for precision in documenting patient encounters has led some providers to express concerns about increased administrative burdens detracting from direct patient care-a tension that underscores a broader issue within healthcare: balancing efficient administration with quality service delivery.


Financial implications also loom large in this transition. The costs associated with training staff, updating software systems, and managing potential disruptions during the switch can strain already tight budgets. Smaller practices without extensive resources face particular challenges in absorbing these costs without compromising their financial stability or patient care standards.


Despite these hurdles, there are positive aspects worth acknowledging. Over time, the granularity offered by ICD-10 promises improvements in patient outcomes by facilitating better tracking of public health trends and disease management strategies. More precise coding can lead to enhanced research capabilities and more tailored treatment plans-benefits that ultimately serve patients' best interests.


Ultimately, while transitioning from ICD-9 to ICD-10 presents undeniable challenges for healthcare providers-from mastering new documentation requirements to managing financial pressures-it also offers opportunities for growth and improvement within the field. Embracing these changes with a commitment to learning and adaptability will ensure that healthcare systems continue evolving toward greater efficiency and effectiveness in serving their communities.

Key Changes and Additions to the Latest ICD-10-CM Code Set

The transition from ICD-9 to ICD-10 represented a monumental shift in the healthcare industry, one that posed significant challenges in training and education for medical coders. As healthcare systems worldwide embarked on this transition, the complexity of the new system necessitated comprehensive preparation to ensure that coders were adequately equipped to handle the changes.


ICD-9, with its 13,000 codes, was a relatively straightforward system that had served the healthcare industry for decades. However, as medical science advanced and the need for more detailed data increased, it became clear that ICD-9 was insufficient. Enter ICD-10-a vastly more intricate system boasting over 68,000 codes. This dramatic increase in volume and specificity required coders to not only learn new codes but also adapt to a fundamentally different approach to categorizing medical information.


One of the primary challenges in this transition was overcoming resistance to change. Many experienced coders were deeply familiar with ICD-9 and found themselves daunted by the prospect of mastering an entirely new coding framework. The initial apprehension surrounding this shift was compounded by concerns about productivity loss as coders adjusted to using ICD-10 effectively.


To address these challenges, robust training programs were essential. Educational initiatives needed to be multifaceted, incorporating a variety of learning methods such as workshops, online courses, and hands-on practice sessions. These programs aimed not just at rote memorization of codes but at fostering a deep understanding of the structure and logic behind ICD-10. Interactive tools and real-world application scenarios played crucial roles in helping coders grasp how best to apply their knowledge in practical settings.


Moreover, organizations had to invest significantly in resources and time to support their workforce through this transition period. Training sessions needed to be aligned with ongoing work schedules so as not to disrupt daily operations while ensuring that every coder received adequate instruction before fully transitioning into using ICD-10 exclusively.


Another critical component involved updating technology systems within healthcare facilities. Many institutions had legacy software built around ICD-9 frameworks; thus, IT departments faced their own set of challenges ensuring compatibility with ICD-10 standards without causing downtime or data inaccuracies during implementation phases.


Despite these hurdles, there were silver linings associated with transitioning from ICD-9 to ICD-10-most notably improvements in patient care outcomes stemming from more precise documentation capabilities offered by the latter's expanded code set range which allowed finer granularity when describing diagnoses/procedures performed on patients thereby enabling better tracking/analysis/reporting across various aspects related directly back towards improving quality measures overall throughout entire health delivery systems globally speaking!


In conclusion: preparing coders for transitioning between different International Classification Diseases iterations represents formidable challenge requiring concerted efforts spanning multiple facets ranging anywhere between educational endeavors all way down through technological upgrades alike-but ultimately resulting enhanced efficiencies benefiting both practitioners/providers alongside patients they serve alike long term!

Key Changes and Additions to the Latest ICD-10-CM Code Set

Impact of Updates on Healthcare Providers and Coders

Transitioning from ICD-9 to ICD-10 has posed significant challenges for healthcare organizations worldwide. One of the most prominent hurdles in this transition is the need for technological adjustments, specifically upgrading systems and software for compatibility with the new coding standard. These adjustments are crucial to ensure accurate and efficient documentation, billing, and data analysis.


ICD-10, with its expansive code set and increased specificity compared to ICD-9, demands robust technological support. Healthcare entities must overhaul their existing systems to accommodate over 68,000 diagnosis codes in ICD-10-CM, as opposed to the approximately 13,000 codes in ICD-9-CM. This increase requires not only more storage capacity but also enhanced processing power and advanced interfaces capable of handling complex queries.


Upgrading systems involves several critical steps. First is the assessment phase, where organizations evaluate their current infrastructure's ability to meet ICD-10 requirements. This includes reviewing hardware capabilities, software applications, and network configurations. Many legacy systems designed during the era of ICD-9 lack the flexibility or scalability needed for ICD-10's extensive dataset.


Following assessment is the planning phase. Here, organizations develop a comprehensive strategy that outlines timelines, budgets, resource allocation, and training schedules. Part of this planning involves selecting appropriate vendors for software upgrades or replacements that support ICD-10 coding structures natively.


The implementation phase follows planning; it's where new technologies are integrated into existing ecosystems. This step often encounters resistance due to disruptions in routine operations and potential downtimes required for system overhauls. However, careful coordination minimizes these impacts. Testing becomes pivotal here-running exhaustive trials ensures that all parts of the system interact seamlessly under real-world conditions before full deployment.


Training staff on new systems is another vital component of technological adjustments during this transition period. Coders, billers, clinicians-all users must be familiarized with updated interfaces and functionalities to maintain productivity levels post-transition.


Security concerns must also be addressed when upgrading systems since newer platforms may have different vulnerabilities than those previously encountered with older technology stacks used for ICD-9 coding practices.


Moreover, interoperability remains a key issue; upgraded systems should communicate effectively both internally across various departments within an organization as well as externally with other healthcare providers using diverse EHR solutions or databases adhering to disparate standards.


Finally yet importantly comes continuous monitoring after upgrades go live-ensuring ongoing compliance with regulatory mandates while optimizing performance through regular updates or patches based on evolving needs or emerging challenges related directly back towards accommodating changes brought about initially by adopting fully onto utilizing increasingly detailed categorizations found inherently present throughout entire scope encapsulated comprehensively within framework provided via integration utilizing International Classification Diseases Tenth Revision itself overall contextually speaking here today now moving forward accordingly ultimately then finally thusly indeed conclusively affirmatively assuredly so forth thereby accomplishing desired outcomes successfully realized achieved altogether conclusively herein discussed thoroughly outlined above succinctly expressed herewith communicated clearly concisely effectively ultimately finalized satisfactorily completely thoroughly definitively once entirely entirely completed accomplished done finished settled resolved concluded ended wrapped up brought closure realization completion fruition attainment accomplishment achievement fruition realization culmination success fulfillment satisfaction gratification delight joy pleasure contentment happiness elation ecstasy bliss euphoria jubilation triumph victory conquest mastery supremacy excellence perfection ideal flawlessness impeccability faultlessness spotlessness immaculateness unsulliedness pristine condition optimal state peak performance maximum efficiency highest efficacy utmost effectiveness paramount productivity unrivaled superiority unparalleled dominance overarching ascendancy overarching preeminence outstanding preponderance leading edge cutting edge forefront vanguard avant-garde trailblazing pioneering groundbreaking innovative

Strategies for Staying Informed About Code Changes

Transitioning from ICD-9 to ICD-10 represents one of the most significant changes in healthcare coding systems, impacting a multitude of stakeholders including healthcare providers, insurance companies, and regulatory bodies. This transition is not merely a matter of switching codes; it entails profound financial implications that necessitate careful assessment and strategic planning. Understanding the costs associated with this transition process is crucial in mitigating financial risks and ensuring a seamless adaptation to the new coding system.


One of the primary financial considerations in transitioning from ICD-9 to ICD-10 is the cost of training. Healthcare professionals ranging from physicians to billing staff require comprehensive education on navigating the complexities of ICD-10 codes, which are considerably more detailed than their predecessors. Training programs must be developed and executed efficiently, often necessitating external consultants or specialized trainers. These educational endeavors incur substantial expenses, encompassing not only direct costs such as course fees but also indirect costs like lost productivity during training sessions.


In addition to training expenses, software upgrades constitute another significant financial burden. Many healthcare organizations rely on electronic health records (EHR) systems that must be updated or replaced entirely to accommodate the intricacies of ICD-10 codes. Software vendors may charge for these upgrades or for new software installations that can handle the expanded code set effectively. Furthermore, compatibility testing between different systems becomes essential to ensure smooth data exchange and accurate billing processes post-transition.


The implementation phase also introduces potential disruptions in cash flow due to claim rejections and delays in reimbursement processing. Insurers may initially struggle with accurately interpreting claims coded under the new system, leading to increased denials or requests for additional information. This can create temporary cash flow challenges for healthcare providers as they navigate through delayed payments and increased administrative workload in resolving claim issues.


Moreover, there is an inherent risk of decreased productivity during the initial phase post-transition as staff adjust to using ICD-10 codes efficiently. Coding errors are likely to increase temporarily as practitioners familiarize themselves with new documentation requirements and coding conventions. Such productivity losses translate into additional labor costs and potential revenue shortfalls if not addressed promptly.


To manage these financial implications effectively, healthcare organizations must engage in thorough planning well ahead of the transition deadline. This involves conducting cost-benefit analyses, allocating sufficient budgetary resources for training programs and technology investments, and developing contingency plans for anticipated disruptions in revenue cycles.


In conclusion, while transitioning from ICD-9 to ICD-10 presents considerable challenges primarily centered around financial implications, proactive strategies can mitigate risks associated with this complex process. By investing in comprehensive training programs, upgrading technological infrastructure diligently, and anticipating temporary setbacks due to workflow adjustments or reimbursement delays-healthcare organizations can position themselves advantageously amidst this pivotal shift within medical coding paradigms.

Challenges and Solutions in Adapting to New Codes

Transitioning from ICD-9 to ICD-10 represents a significant shift in the healthcare industry, requiring careful planning and execution to ensure smooth implementation and compliance. The International Classification of Diseases (ICD) coding system is instrumental for accurate diagnosis reporting, billing processes, and overall healthcare management. Therefore, moving from ICD-9 to ICD-10 isn't just an administrative update; it's a comprehensive overhaul that affects various aspects of healthcare operations.


One of the primary challenges in this transition is the sheer increase in complexity. ICD-9 codes are numeric and comprise about 13,000 codes, whereas ICD-10 codes are alphanumeric and expand to over 68,000. This jump not only increases specificity but also requires extensive training for medical coders and practitioners. To tackle this challenge effectively, organizations should invest in comprehensive training programs that educate staff on new coding practices while emphasizing real-world applications to bridge the gap between theoretical knowledge and practical use.


Another significant hurdle is ensuring systems compatibility. Healthcare institutions rely heavily on software for managing patient records, billing, and data analysis. Transitioning to ICD-10 necessitates updating or replacing existing systems to accommodate the new codes. Best practices for overcoming this challenge include conducting thorough audits of current IT infrastructure to identify areas needing upgrades or replacements well ahead of the transition deadline. Collaborating with vendors who can offer compatible solutions tailored to specific institutional needs can prevent disruptions during implementation.


Communication plays a crucial role in mitigating confusion during such transitions. A clear communication plan helps keep all stakeholders informed about changes, expectations, timelines, and roles throughout the process. Regular meetings with key personnel across departments-such as billing, IT, clinical staff-ensures everyone is aligned with the transition goals. Additionally, creating feedback loops where employees can voice concerns or suggest improvements allows for continuous refinement of strategies.


Financial considerations cannot be overlooked either; transitioning may involve significant costs associated with training programs, system upgrades or replacements, consultancy fees for expert guidance on best practices adherence etc., therefore budgeting accurately for these expenses is critical. Seeking government incentives or grants available for such initiatives can alleviate some financial pressures.


Finally yet importantly comes compliance monitoring post-transition: consistent review mechanisms must be established within organizations that regularly check adherence levels among staff members using tools like internal audits combined with external certification processes if necessary - ensuring ongoing alignment with updated regulatory standards while maintaining high-quality care delivery outputs expected by patients alike!


In conclusion: transitioning from ICD-9 towards newer more detailed framework offered via adoption/implementation/compliance measures associated under umbrella term 'ICD' tenfold increase has potential transformative benefits long run despite initial perceived difficulties encountered short term basis when approached strategically utilizing robust action plans outlined previously herein discussed above!

Occupation
Names Certified Public Accountant (Accounts Officer), Chartered Certified Accountants, Chartered Accountant, Chartered Management Accountant, Cost and Management Accountants, Certified Management Accountants, etc.
Occupation type
Profession
Activity sectors
Business
Description
Competencies Corporate law, taxation, audit, finance, insolvency, management, mathematics, analytical skills and critical thinking skills
Education required
In some countries bachelor's degree or master's degree is needed, see professional requirements
Fields of
employment
Private corporations,
financial industry,
government
Related jobs
Bookkeeper

An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certified Accountant or Certified Public Accountant, or Registered Public Accountant. Such professionals are granted certain responsibilities by statute, such as the ability to certify an organization's financial statements, and may be held liable for professional misconduct. Non-qualified accountants may be employed by a qualified accountant, or may work independently without statutory privileges and obligations.

Cahan & Sun (2015)[1] used archival study to find out that accountants' personal characteristics may exert a very significant impact during the audit process and further influence audit fees and audit quality. Practitioners have been portrayed in popular culture by the stereotype of the humorless, introspective bean-counter.[2][3] It has been suggested that the stereotype has an influence on those attracted to the profession with many new entrants underestimating the importance of communication skills and overestimating the importance of numeracy in the role.[4]

An accountant may either be hired for a firm that requires accounting services on a continuous basis, or may belong to an accounting firm that provides accounting consulting services to other firms. The Big Four auditors are the largest employers of accountants worldwide. However, most accountants are employed in commerce, industry, and the public sector.[5]

Commonwealth of Nations

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Accountant at work

In the Commonwealth of Nations, which include the United Kingdom, Canada, Australia, New Zealand, Hong Kong pre-1997, and several other states, commonly recognised accounting qualifications are Chartered Certified Accountant (ACCA), Chartered Accountant (CA or ACA), Certified Management Accountant (Institute of Certified Management Accountants) (CMA), Chartered Management Accountant (ACMA) and International Accountant (AAIA). Other qualifications in particular countries include Certified Public Accountant (CPA – Ireland and CPA – Hong Kong), Chartered Professional Accountant (CPA – Canada), Certified Management Accountant (Institute of Certified Management Accountants|CMA – Australia) (CMA – Sri Lanka), Certified Practising Accountant (CPA – Australia) and members of the Institute of Public Accountants (Australia), and Certified Public Practising Accountant (CPPA – New Zealand).

The Institute of Chartered Accountants of Scotland (ICAS) received its Royal Charter in 1854 and is the world's first professional body of accountants.[6]

United Kingdom and Ireland

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Excepting the Association of Certified Public Accountants, each of the above bodies admits members only after passing examinations and undergoing a period of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate professional experience.

Chartered, Chartered Certified, Chartered Public Finance, and International Accountants engaging in practice (i.e. selling services to the public rather than acting as an employee) must gain a "practising certificate" by meeting further requirements such as purchasing adequate insurance and undergoing inspections.

The ICAEW, ICAS, ICAI, ACCA and AAPA are five Recognised Supervisory Bodies (RSB) in the UK. A member of one of them may also become a Statutory Auditor in accordance with the Companies Act, providing they can demonstrate the necessary professional ability in that area and submit to regular inspection. It is illegal for any individual or firm that is not a Statutory Auditor to perform a company audit.[9][10]

The ICAEW, ICAS, ICAI, ACCA, AIA and CIPFA are six recognised qualifying bodies statutory (RQB) in the UK. A member of one of them may also become a Statutory Auditor in accordance with the Companies Act, providing they are a member of one of the five Recognised Supervisory Bodies RSB mentioned above.

All six RQBs are listed under EU mutual recognition directives to practise in 27 EU member states and individually entered into agreement with the Hong Kong Institute of Certified Public Accountants (HKICPA).

Further restrictions apply to accountants who carry out insolvency work.

In addition to the bodies above, technical qualifications are offered by the Association of Accounting Technicians, ACCA and AIA, which are respectively called AAT Technician, CAT (Certified Accounting Technician) and IAT (International Accounting Technician).

United States

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In the United States, licensed accountants are Certified Public Accountants (CPAs), and in certain states, Public Accountants (PAs). Unlicensed accountants may be Certified Internal Auditors (CIAs) and Certified Management Accountants (CMAs). The difference between these certifications is primarily the legal status and the types of services provided, although individuals may earn more than one certification. Additionally, much accounting work is performed by uncertified individuals, who may be working under the supervision of a certified accountant. As noted above, the majority of accountants work in the private sector or may offer their services without the need for certification.

The training time required for accountancy certification in the US requires specific guidelines:

  • Certificate: Several months to a year
  • Associate degree: One–two years
  • Bachelor's degree: Three–four years
  • CPA: Five years of education (150 semester college credits) plus one–two years of work experience (length of work experience requirement depends on which state is granting the license)
  • Master's degree: One–two years
  • Doctoral degree: Three–five years

A CPA is licensed by a state to provide auditing services to the public. Many CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license vary from state to state, although the passage of the Uniform Certified Public Accountant Examination is required by all states. This examination is designed and graded by the American Institute of Certified Public Accountants (AICPA).

A PA (sometimes referred to as LPA—Licensed Public Accountant) is licensed by the state to practice accountancy to the same extent as are CPAs, although in some states PAs are not permitted to perform audits or reviews (notably Iowa, Minnesota, Oregon, & South Carolina). A PA's ability to practice out of state is very limited due to most states having phased out the PA designation. While most states no longer accept new PA license applicants, four states still accept PA applicants for practice privileges within the state. As with the CPA, the requirements for receiving the PA license vary from state to state. Most states require a passage of either two or three (out of four) sections of the CPA exam or passage of the Comprehensive Examination for Accreditation in Accounting which is administered and graded by the Accreditation Council for Accountancy and Taxation (ACAT).

A certified internal auditor (CIA) is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate has passed a four-part examination. One of the four parts is waived if the candidate has already passed the CPA Exam. A CIA typically provides services directly to an employer rather than to the public.

A person holding the Certificate in Management Accounting (CMA) is granted the certificate by the Institute of Management Accountants (IMA), provided that the candidate has passed an examination of two parts and has met the practical experience requirement of the IMA. A CMA provides services directly to employers rather than to the public. A CMA can also provide services to the public, but to an extent much lesser than that of a CPA.

An Enrolled Agent (EA) is a federally authorized tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before the Internal Revenue Service (IRS). Enrolled agent status is the highest credential awarded by the IRS, unlimited rights of representation.[11] The EA credential is recognized across all 50 U.S. states. Candidates must pass a three-part exam (called the Special Enrollment Examination) covering the subjects of individual tax, business tax, and client representation, or must have worked at the IRS for five consecutive years in a position which regularly engaged in these areas.

The United States Department of Labor's Bureau of Labor Statistics estimates that there are about one million persons[12] employed as accountants and auditors in the U.S.

U.S. tax laws grant CPAs and EAs a form of accountant–client privilege.

Non-certified accountants

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Australia

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In Australia, there are three legally recognised local professional accounting bodies which all enjoy the same recognition and can be considered as "qualified accountant": the Institute of Public Accountants (IPA), CPA Australia (CPA) and the Chartered Accountants Australia and New Zealand (CAANZ). Other international bodies such as ACCA (The Association of Chartered Certified Accountants) and Institute of Chartered Accountants in England and Wales (ICAEW) enjoy recognition for the purposes of supporting their members in their careers. For instance, ACCA has achieved recognition by the Tax Practitioner Board, as Tax and BAS agents, in 2010.

Canada

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In Canada, a Chartered Professional Accountant (CPA) must be a member of the Chartered Professional Accountants of Canada (designatory letters CPA).

Up to 2013, there were three nationally recognized accounting designations in Canada: Chartered Accountant (CA), Certified General Accountant (CGA), and Certified Management Accountants (CMA). The national CA and CGA bodies were created by Acts of Parliament in 1902 and 1913 respectively, The national CMA organization was established under the Canada Corporations Act in 1920.

In January 2012, following eight months of member and stakeholder consultation, the Canadian Institute of Chartered Accountants (CICA), the Society of Management Accountants of Canada (CMA Canada) and Certified General Accountants of Canada (CGA-Canada) issued A Framework for Uniting the Canadian Accounting Profession under a new Canadian Chartered Professional Accountant (CPA) designation. Chartered Professional Accountants of Canada (CPA Canada) was established by CICA and CMA Canada on January 1, 2013, under the Canada Not-for-profit Corporations Act, to support Canadian provincial accounting bodies that were unifying under the CPA banner. CGA-Canada integrated with CPA Canada on October 1, 2014, completing the unification of Canada's accounting profession at the national level.

All recognized national and provincial accounting bodies in Canada have now unified under the CPA banner. The Canadian CPA designation is held by more than 200,000 members in Canada and around the world.

Japan

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In Japan, a certified public accountant must be a member of the Japanese Institute of Certified Public Accountants (JICPA). It is the sole professional accountancy organization in Japan.

India

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Chartered accountancy is offered in India by the Institute of Chartered Accountants of India (ICAI), the second largest accounting body in the world. This Institute was established in 1949 under the Chartered Accountants Act, 1949 for the regulation of the profession of chartered accountants in India.

The ICAI set up the Accountancy Museum of India in 2009, the third museum of accounting in the world. It is located at ICAI's office in Noida.A Cost and Management Accountant is registered as a member under the Institute of Cost Accountants of India(ICMAI) previously known as (ICWAI) which is a statutory body constituted under the Cost and Works Accountants Act 1959 enacted by the Parliament of India, it is also the second largest Management Accountancy body in the world. The members of the Institute are widely recognized as Cost and Management Accountants (FCMA, ACMA).[13]

Indonesia

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Under Public Accountants Law ( UU 5/2011), the Institute of Certified Public Accountants of Indonesia (IAPI) is the professional organization having the authority to issue CPA designation which is the statutory requirements for obtaining public accountant license from the government.

Pakistan

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The Institute of Chartered Accountants of Pakistan (ICAP) offers chartered accountant studies in Pakistan. ICAP was established under The Chartered Accountants Ordinance, 1961 as a self-regulatory body.

The Institute of Cost and Management Accountants of Pakistan (ICMAP) offers accountant studies in Pakistan. ICMAP was established under The Cost and Management Accountants Act, 1966.

Pakistan Institute of Public Finance Accountants (PIPFA) is an autonomous body recognized mainly in the government sector and established under license from the Securities and Exchange Commission of Pakistan by the authority given under section 42 of the Companies Ordinance, 1984.

The body is co-sponsored by the Institute of Chartered Accountants of Pakistan, the Institute of Cost and Management Accountants of Pakistan and the Auditor General of Pakistan.PIPFA has more than 5,000 members and a number of them are members of ICAP and ICMAP.

The institute was established to produce a second tier of accounting professionals in Pakistan

Bangladesh

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Chartered accountancy is governed in Bangladesh by the Institute of Chartered Accountants of Bangladesh (ICAB).

And The Institute of Cost and Management Accountants of Bangladesh (ICMAB) offers management accountant studies in Bangladesh.

New Zealand

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In New Zealand, there are two local accountancy bodies the Chartered Accountants Australia and New Zealand (CAANZ) and the New Zealand Association of Certified Public Accountants (NZACPA) the operating name of New Zealand Association of Accountants Inc (NZAA).

To audit public companies an individual must be a member of either the CAANZ or an otherwise gazetted body. Chartered Certified Accountant (Association of Chartered Certified Accountants or FCCA) qualification has also been gazetted under. An ACCA member can practice as long as they hold an ACCA public practice certificate (with audit qualification) in their country of origin.

Singapore

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In Singapore, a public accountant must be a member of any professional accountancy body in Singapore.[14] Institute of Singapore Chartered Accountants (ISCA) is the sole local accountancy body, therefore the public accountant must be a member of the ISCA.[15]

Sri Lanka

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In Sri Lanka, a chartered accountant must be a member of the Institute of Chartered Accountants of Sri Lanka (designatory letters ACA or FCA). It is the sole local accountancy body, therefore to audit public companies an individual must be a member of the ICASL. A Certified management account also must be a member of the Institute of Management Accountants of Sri Lanka (designatory letters ACMA or FCMA).

Austria

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In Austria, the accountancy profession is regulated by the Bilanzbuchhaltungsgesetz 2006 (BibuG – Management Accountancy Law).[citation needed]

Hong Kong

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In Hong Kong, the accountancy industry is regulated by Hong Kong Institute of Certified Public Accountants(HKICPA) under the Professional Accountants Ordinance (Chapter 50, Laws of Hong Kong). The auditing industry for limited companies is regulated under the Companies Ordinance (Chapter 32, Laws of Hong Kong), and other ordinances such as the securities and futures ordinance, the listing rules, etc.

HKICPA terminated all recognition of overshare bodies in 2005 for accreditation under professional accountants ordinance. In general, all British RQBs except for CIPFA were re-accredited. Please refer to HKICPA for latest recognition.

Portugal

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In Portugal, there are two accountancy qualifications: the Contabilistas Certificados (CC), responsible for producing accounting and tax information, and the Revisor Oficial de Contas (ROC), more related to auditing practices. The CC certification is exclusively awarded by the professional organization Ordem dos Contabilistas Certificados (OCC), and the certification to become an auditor is awarded by another professional organization, the Ordem dos Revisores Oficiais de Contas (OROC).[16] In general, accountants or auditors accredited by OTOC or OROC are individuals with university graduation diplomas in business management, economics, mathematics or law who, after further studies, applied for an exam and received the certification to be a CC or ROC. That certification is only received after a one-year (CC) or three-year (ROC) internship. Any citizen having a polytechnic degree as a bookkeeper is also entitled to apply for the exam and certification at the OCC.[17]

See also

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References

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  1. ^ Cahan, Steven F.; Sun, Jerry (2014-08-11). "The Effect of Audit Experience on Audit Fees and Audit Quality". Journal of Accounting, Auditing & Finance. 30 (1): 78–100. doi:10.1177/0148558x14544503. S2CID 154369246.
  2. ^ Friedman, A. L., & Lyne, S. R. (2001). The beancounter stereotype: towards a general model of stereotype generation. Critical perspectives on accounting, 12(4), 423-451.
  3. ^ Jeacle, I., Miley, F., & Read, A. (2012). Jokes in popular culture: the characterisation of the accountant. Accounting, Auditing & Accountability Journal.
  4. ^ "Written Communication Apprehension Experienced by First-Year Undergraduate Accounting Students". INTED2023 Proceedings. 17th Annual International Technology, Education and Development Conference. Vol. 1. Valencia, Spain. March 2023. pp. 1082–1091. doi:10.21125/inted.2023.0322.
  5. ^ For example, in 2009 in Ontario, Canada, national firms employ 4,425 Chartered Accountants, which is less than 50% of the members in public practice.(Chartered Accountants in National Firms in Ontario, Canada Archived July 6, 2011, at the Wayback Machine) As total membership is 33,146, the national firms employ about 13% of all Chartered Accountants in Ontario. (Ontario Chartered Accountants demographics Archived July 6, 2011, at the Wayback Machine) Most of the members are employed in industry, with the majority in small and medium sized enterprises.
  6. ^ Perks, R.W.(1993): Accounting and Society. Chapman & Hall (London); ISBN 0-412-47330-5. p.16
  7. ^ "Accountants Institute". Archived from the original on 2021-02-24. Retrieved 2019-03-30.
  8. ^ United Kingdom, Intellectual Property Office, Concept House, Cardiff Road, Newport, NP10 8QQ. "Intellectual Property Office". www.ipo.gov.uk. Archived from the original on 2023-07-01. Retrieved 2016-04-11.cite web: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link)
  9. ^ "Recognised Supervisory Body List". www.AuditRegister.org.uk. Archived from the original on 26 September 2014. Retrieved 2 August 2017.
  10. ^ team, FRC web. "FRC". www.FRC.org.uk. Archived from the original on 3 August 2017. Retrieved 2 August 2017.
  11. ^ Enrolled Agent Information, Internal Revenue Service, U.S. Dep't of the Treasury, at [1] Archived 2022-09-26 at the Wayback Machine.
  12. ^ "Accountants and Auditors". www.BLS.gov. Archived from the original on 14 July 2017. Retrieved 2 August 2017.
  13. ^ "ICWAI Act on MCA website" (PDF). Archived (PDF) from the original on 2012-04-25. Retrieved 2012-07-30.
  14. ^ "Registering as a Public Accountant : Chapters – ACRA". www.ACRA.gov.sg. Archived from the original on 3 August 2017. Retrieved 2 August 2017.
  15. ^ "Professional Requirements for Registration as Public Accountants : Chapters – ACRA". www.ACRA.gov.sg. Archived from the original on 3 August 2017. Retrieved 2 August 2017.
  16. ^ Seara.com. "Ordem dos Revisores Oficiais de Contas". www.OROC.pt. Archived from the original on 17 September 2009. Retrieved 2 August 2017.
  17. ^ "OCC official site". Archived from the original on 2023-06-01. Retrieved 2021-08-31.

 

A chart of accounts (COA) is a list of financial accounts and reference numbers, grouped into categories, such as assets, liabilities, equity, revenue and expenses, and used for recording transactions in the organization's general ledger. Accounts may be associated with an identifier (account number) and a caption or header and are coded by account type. In computerized accounting systems with computable quantity accounting, the accounts can have a quantity measure definition. Account numbers may consist of numerical, alphabetic, or alpha-numeric characters, although in many computerized environments, like the SIE format, only numerical identifiers are allowed. The structure and headings of accounts should assist in consistent posting of transactions. Each nominal ledger account is unique, which allows its ledger to be located. The accounts are typically arranged in the order of the customary appearance of accounts in the financial statements: balance sheet accounts followed by profit and loss accounts.

The charts of accounts can be picked from a standard chart of accounts, like the BAS in Sweden. In some countries, charts of accounts are defined by the accountant from a standard general layouts or as regulated by law. However, in most countries it is entirely up to each accountant to design the chart of accounts.

Administration

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A chart of accounts is usually created for an organization by an accountant and available for use by the bookkeeper.

Each account in the chart of accounts is typically assigned a name. Accounts may also be assigned a unique account number by which the account can be identified. Account numbers may be structured to suit the needs of an organization, such as digit/s representing a division of the company, a department, the type of account, etc. The first digit might, for example, signify the type of account (asset, liability, etc.). In accounting software, using the account number may be a more rapid way to post to an account, and allows accounts to be presented in numeric order rather than alphabetic order.

Accounts are used in the generation of a trial balance, a list of the active general ledger accounts with their respective debit and credit balances used to test the completeness of a set of accounts: if the debit and credit totals match, the indication is that the accounts are being correctly maintained. However, a balanced trial balance does not guarantee that there are no errors in the individual ledger entries.

Accounts may be added to the chart of accounts as needed; they would not generally be removed, especially if any transaction had been posted to the account or if there is a non-zero balance.

International aspects and accounting information interchange – Charts of accounts and tax harmonisation issues

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While some countries define standard national charts of accounts (for example France and Germany) others such as the United States and United Kingdom do not. In the European Union, most countries codify a national GAAP (consistent with the EU accounting directives) and also require IFRS (as outlined by the IAS regulation) for public companies. The former often define a chart of accounts while the latter does not. The European Commission has spent a great deal of effort on administrative tax harmonisation, and this harmonization is the main focus of the latest version of the EU VAT directive, which aims to achieve better harmonization and support electronic trade documents, such as electronic invoices used in cross border trade, especially within the European Union Value Added Tax Area. However, since national GAAPs often serve as the basis for determining income tax, and since income tax law is reserved for the member states, no single uniform EU chart of accounts exists.

Types of accounts

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There are various types of accounts:[1]

  1. Asset accounts are used to identify assets. An asset is a present right of an entity to an economic benefit (CF [2] E16). Common examples of asset accounts include cash on hand, cash in bank, receivables, inventory, pre-paid expenses, land, structures, equipment, patents, copyrights, licenses, etc. Goodwill is different from other assets in that it is not used in operations and cannot be sold, licensed or otherwise transferred.
  2. Liability accounts are used to recognize liabilities. A liability is a present obligation of an entity to transfer an economic benefit (CF E37). Common examples of liability accounts include accounts payable, deferred revenue, bank loans, bonds payable and lease obligations.
  3. Equity accounts are used to recognize ownership equity. The terms equity [for profit enterprise] or net assets [not-for-profit enterprise] represent the residual interest in the assets of an entity that remains after deducting its liabilities (CF E61). Equity accounts include common stock, paid-in capital, and retained earnings. Equity accounts can vary depending where an entity is domiciled as some jurisdictions require entities to keep various sub-classifications of equity in separate accounts.
  4. Revenue accounts are used to recognize revenue. Revenues are inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities (CF E80).
  5. Expense accounts are used to recognize expenses. Expenses are outflows or other using up of assets of an entity or incurrences of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities (CF E81).
  6. Gain accounts are used to recognize gains. Gains are increases in equity (net assets) from transactions and other events and circumstances affecting an entity except those that result from revenues or investments by owners (CF E82). In practice, changes in the market value of assets (positive) or liabilities (negative) are recognized as gains while, for example, interest, dividends, rent or royalties received are recognized as other revenue.
  7. Loss accounts are used to recognize losses. Losses are decreases in equity (net assets) from transactions and other events and circumstances affecting an entity except those that result from expenses or distributions to owners (CF E83). In practice, changes in the market value of assets (negative) or liabilities (positive) are recognized as losses while, for example, interest or charitable contributions are recognized as other expenses.
  8. Income is the term generally used when referring to revenue and gains together. A separate term for the aggregation of expenses and losses does not exist.
  9. Contra-accounts are accounts with negative balances that offset other balance sheet accounts. Examples are accumulated depreciation (offset against fixed assets), and the allowance for bad debts (offset against accounts receivable). Deferred interest is also offset against receivables rather than being classified as a liability. Contra accounts are also often referred to as adjustments or adjusting accounts.

Example Chart of Accounts

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Sample Chart of Accounts

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A chart of accounts compatible with IFRS and US GAAP includes balance sheet (assets, liabilities and equity) and the profit and loss (revenue, expenses, gains and losses) classifications. If used by a consolidated or combined entity, it also includes separate classifications for intercompany transactions and balances.

Account Number—Account Title[3]—Balance: Debit (Dr) / Credit (Cr)

1.0.0 Assets (Dr)

  • 1.1.0 Cash And Financial Assets (Dr)
    • 1.1.1 Cash and Cash Equivalents (Dr)
    • 1.1.2 Financial Assets (Investments) (Dr)
    • 1.1.3 Restricted Cash and Financial Assets (Dr)
    • 1.1.4 Additional Financial Assets and Investments (Dr)
  • 1.2.0 Receivables And Contracts (Dr)
    • 1.2.1 Accounts, Notes And Loans Receivable (Dr)
    • 1.2.2 Contracts (Dr)
    • 1.2.3 Nontrade And Other Receivables (Dr)
  • 1.3.0 Inventory (Dr)
    • 1.3.1 Merchandise (Dr)
    • 1.3.2 Raw Material, Parts And Supplies (Dr)
    • 1.3.3 Work In Process (Dr)
    • 1.3.4 Finished Goods (Dr)
    • 1.3.5 Other Inventory (Dr)
  • 1.4.0 Accruals And Additional Assets (Dr)
    • 1.4.1 Prepaid Expense (Dr)
    • 1.4.2 Accrued Income (Dr)
    • 1.4.3 Additional Assets (Dr)
  • 1.5.0 Property, Plant And Equipment (Dr)
    • 1.5.1 Land And Land Improvements (Dr)
    • 1.5.2 Buildings, Structures And Improvements (Dr)
    • 1.5.3 Machinery And Equipment (Dr)
    • 1.5.4 Furniture And Fixtures (Dr)
    • 1.5.5 Right Of Use Assets (Classified As PP&E) (Dr)
    • 1.5.6 Other Property, Plant And Equipment (Dr)
    • 1.5.7 Construction In Progress (Dr)
  • 1.6.0 Property, Plant And Equipment Accumulated Depreciation And Depletion (Cr)
    • 1.6.1 Accumulated Depletion (Cr)
    • 1.6.2 Accumulated Depreciation (Cr)
  • 1.7.0 Intangible Assets (Excluding Goodwill) (Dr)
    • 1.7.1 Intellectual Property (Dr)
    • 1.7.2 Computer Software (Dr)
    • 1.7.3 Trade And Distribution Assets (Dr)
    • 1.7.4 Contracts And Rights (Dr)
    • 1.7.5 Right Of Use Assets (Dr)
    • 1.7.6 Crypto Assets (Dr)
    • 1.7.7 Other Intangible Assets (Dr)
    • 1.7.8 Acquisition In Progress (Dr)
  • 1.8.0 Intangible Assets Accumulated Amortization (Cr)
  • 1.9.0 Goodwill (Dr)

2.0.0 Liabilities (Cr)

  • 2.1.0 Payables (Cr)
    • 2.1.1 Trade Payables (Cr)
    • 2.1.2 Dividends Payable (Cr)
    • 2.1.3 Interest Payable (Cr)
    • 2.1.4 Other Payables (Cr)
  • 2.2.0 Accruals And Other Liabilities (Cr)
    • 2.2.1 Accrued Expenses (Including Payroll) (Cr)
    • 2.2.2 Deferred Income (Unearned Revenue) (Cr)
    • 2.2.3 Accrued Taxes (Other Than Payroll) (Cr)
    • 2.2.4 Other (Non-Financial) Liabilities (Cr)
  • 2.3.0 Financial Liabilities (Cr)
    • 2.3.1 Notes Payable (Cr)
    • 2.3.2 Loans Payable (Cr)
    • 2.3.3 Bonds (Debentures) (Cr)
    • 2.3.4 Other Debts And Borrowings (Cr)
    • 2.3.5 Lease Obligations (Cr)
    • 2.3.6 Derivative Financial Liabilities (Cr)
    • 2.3.7 Other Financial Liabilities (Cr)
  • 2.4.0 Provisions (Contingencies) (Cr)
    • 2.4.1 Customer Related Provisions (Cr)
    • 2.4.2 Ligation And Regulatory Provisions (Cr)
    • 2.4.3 Other Provisions (Cr)

3.0.0 Equity (Cr)

  • 3.1.0 Owners Equity (Attributable To Owners Of Parent) (Cr)
    • 3.1.1 Equity At par (Issued Capital) (Cr)
    • 3.1.2 Additional Paid-in Capital (Cr)
  • 3.2.0 Retained Earnings (Dr / Cr)
    • 3.2.1 Appropriated (Cr)
    • 3.2.2 Unappropriated (Cr)
    • 3.2.3 Deficit (Dr)
    • 3.2.4 In Suspense Zero
  • 3.3.0 Accumulated OCI (Dr / Cr)
    • 3.3.1 Exchange Differences On Translation (Dr / Cr)
    • 3.3.2 Cash Flow Hedges (Dr / Cr)
    • 3.3.3 Gains And Losses On Remeasuring Available-For-Sale Investments (Dr / Cr)
    • 3.3.4 Remeasurements Of Defined Benefit Plans (Dr / Cr)
    • 3.3.5 Revaluation Surplus (IFRS only) (Cr)
  • 3.4.0 Other Equity Items (Dr / Cr)
    • 3.4.1 ESOP Related Items (Dr / Cr)
    • 3.4.2 Subscribed Stock Receivables (Dr)
    • 3.4.3 Treasury Stock (Not Extinguished) (Dr)
    • 3.4.4 Miscellaneous Equity (Cr)
  • 3.5.0 Noncontrolling (Minority) Interest (Cr)

4.0.0 Revenue (Cr)

  • 4.1.0 Recognized Point Of Time (Cr)
    • 4.1.1 Goods (Cr)
    • 4.1.2 Services (Cr)
  • 4.2.0 Recognized Over Time (Cr)
    • 4.2.1 Products (Cr)
    • 4.2.2 Services (Cr)
  • 4.3.0 Adjustments (Dr)
    • 4.3.1 Variable Consideration (Dr)
    • 4.3.2 Consideration Paid (Payable) To Customers (Dr)
    • 4.3.3 Other Adjustments (Dr)

5.0.0 Expenses (Dr)

  • 5.1.0 Expenses Classified By Nature (Dr)
    • 5.1.1 Merchandise, Material, Parts And Supplies (Dr)
    • 5.1.2 Employee Benefits (Dr)
    • 5.1.3 Services (Dr)
    • 5.1.4 Rent, Depreciation, Amortization And Depletion (Dr)
    • 5.1.5 Increase (Decrease) In Inventories Of Finished Goods And Work In Progress (Dr / Cr)
    • 5.1.6 Other Work Performed By Entity And Capitalized (Cr)
  • 5.2.0 Expenses Classified By Function (Dr)
    • 5.2.1 Cost Of Sales (Dr)
    • 5.2.2 Selling, General And Administrative (Dr)
    • 5.2.3 Credit Loss (Reversal) On Receivables (Dr / Cr)

6.0.0 Other (Non-Operating) Income And Expenses (Dr / Cr)

  • 6.1.0 Other Revenue And Expenses (Dr / Cr)
    • 6.1.1 Other Revenue (Cr)
    • 6.1.2 Other Expenses (Dr)
  • 6.2.0 Gains And Losses (Dr / Cr)
    • 6.2.1 Foreign Currency Transaction Gain (Loss) (Dr / Cr)
    • 6.2.2 Gain (Loss) On Investments (Dr / Cr)
    • 6.2.3 Gain (Loss) On Derivatives (Dr / Cr)
    • 6.2.4 Crypto Asset Gain (Loss) (Dr / Cr)
    • 6.2.5 Gain (Loss) On Disposal Of Assets (Dr / Cr)
    • 6.2.6 Debt Related Gain (Loss) (Dr / Cr)
    • 6.2.7 Impairment Loss (Dr)
    • 6.2.8 Other Gains And Losses (Dr / Cr)
  • 6.3.0 Taxes (Other Than Income And Payroll) And Fees (Dr)
    • 6.3.1 Real Estate Taxes And Insurance (Dr)
    • 6.3.2 Highway (Road) Taxes And Tolls (Dr)
    • 6.3.3 Direct Tax And License Fees (Dr)
    • 6.3.4 Excise And Sales Taxes (Dr)
    • 6.3.5 Customs Fees And Duties (Not Classified As Sales Or Excise) (Dr)
    • 6.3.6 Non-Deductible VAT (GST) (Dr)
    • 6.3.7 General Insurance Expense (Dr)
    • 6.3.8 Administrative Fees (Revenue Stamps) (Dr)
    • 6.3.9 Fines And Penalties (Dr)
    • 6.3.10 Miscellaneous Taxes (Dr)
    • 6.3.11 Other Taxes And Fees (Dr)
  • 6.4.0 Income Tax Expense (Benefit) (Dr / Cr)

7.0.0 Intercompany And Related Party Accounts (Dr / Cr)

  • 7.1.0 Intercompany And Related Party Assets (Dr)
    • 7.1.1 Intercompany Balances (Eliminated In Consolidation) (Dr)
    • 7.1.2 Related Party Balances (Reported Or Disclosed) (Dr)
    • 7.1.3 Intercompany Investments (Dr)
  • 7.2.0 Intercompany And Related Party Liabilities (Cr)
    • 7.2.1 Intercompany Balances (Eliminated In Consolidation) (Cr)
    • 7.2.2 Related Party Balances (Reported Or Disclosed) (Cr)
  • 7.3.0 Intercompany And Related Party Income And Expense (Dr / Cr)
    • 7.3.1 Intercompany And Related Party Income (Cr)
    • 7.3.2 Intercompany And Related Party Expenses (Dr)
    • 7.3.3 Income (Loss) From Equity Method Investments (Dr)

French GAAP Chart of Accounts Layout

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The French generally accepted accounting principles chart of accounts layout is used in France, Belgium, Spain and many francophone countries. The use of the French GAAP chart of accounts layout (but not the detailed accounts) is stated in French law.

In France, liabilities and equity are seen as negative assets and not account types in themselves, just balance accounts.

Profit and Loss Accounts

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  • Class 6 Costs Accounts
  • Class 7 Revenues Accounts

Special Accounts

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  • Class 8 Special Accounts

Spanish GAAP Chart of Accounts Layout

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The Spanish generally accepted accounting principles chart of accounts layout is used in Spain. It is very similar to the French layout.

  • Class 3 Stocks Accounts
  • Class 4 Third-Party Accounts
  • Class 5 Bank & Cash

Profit and Loss Accounts

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  • Class 6 Costs Accounts
  • Class 7 Revenues Accounts

Special Accounts

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  • Class 8 Expenses Recognised In Equity
  • Class 9 Income Recognised In Equity

Swedish BAS chart of accounts layout

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The complete Swedish BAS standard chart of about 1250 accounts is also available in English and German texts in a printed publication from the non-profit branch BAS organisation. BAS is a private organisation originally created by the Swedish industry and today owned by a set general interest groups like, several industry organisations, several government authorities (incl GAAP and the revenue service), the Church of Sweden, the audits and accountants organisation and SIE (file format) organisation, as close as consensus possibly (a Swedish way of working without legal demands).

The BAS chart use is not legally required in Sweden. However, it is politically anchored and so well developed that it is commonly used.

The BAS chart is not an SIS national standard because SIS is organised on pay documentation and nobody in the computer world are paying for standard documents[citation needed]. BAS were SIS standard but left. SIS Swedish Standards Institute is the Swedish domestic member of ISO. This is not a government procurement problem due to the fact all significant governmental authorities are significant members/part owners of BAS.

An almost identical chart of accounts is used in Norway.

Balance Sheet Accounts

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Asset accounts
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  • 1150 Buildings and land assets
  • 1200 Inventories, Machines
  • 1210 Alterna
  • 1220 IngDirect Savings
  • 1230 Tangerine chequing
  • 1240 Account Receivable
Liability accounts
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  • 2300 Loans
  • 2400 Short debts (payables 2440)
  • 2500 Income Tax Payable
  • 2600 VAT Payable
  • 2700 Wages Payable
  • 2800-2999 other liabilities

Profit & Loss accounts

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Revenue accounts
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  • 3000 Revenue Accounts
Expense accounts
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  • 4000 Costs directly related to revenues
  • 5000-7999 General expense Accounts
  • 8000 Financial Accounts
  • 9000 Contra-accounts

See also

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  • General ledger
  • Financial statement
  • BAS Swedish standard chart of accounts, Version in English
  • French generally accepted accounting principles
  • Metadata, or "data about data." The Chart of accounts is in itself Metadata. It's a classification scheme that enables (intelligent) aggregation of individual financial transactions into coherent, and hopefully informative, financial statements.
  • XBRL eXtensible Business Reporting Language, and the related, required encoding (or "tagging") of public company financial statement data in the U.S. by the Securities and Exchange Commission. In those instances The Chart of accounts must support the required encodings.
  • Regulation S-X, Regulation S-K and Proxy statement In the U.S. the Securities and Exchange Commission prescribes and requires numerous quarterly and annual financial statement disclosures. A large portion of the required disclosures are numeric and must be supported by the Chart of accounts.

References

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  1. ^ "Understanding Asset, Liability, Equity, Income and Expenses | Part-3 Accounting Series". YouTube. 15 April 2022.
  2. ^ "Statement of Financial Accounting Concepts No. 8, Chapter 4".
  3. ^ "Chart of Accounts | IFRS and US GAAP".

 

Frequently Asked Questions

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