FRS 100 and Leptokurtic frequency distribution: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
''UK and Irish accounting.''
A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.


Financial Reporting Standard 100, which deals with the application of Financial Reporting Requirements for companies and other reporting entities in the UK and the Republic of Ireland.
A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).


== See also ==
* [[Frequency distribution]]
* [[Leptokurtosis]]
* [[Lognormal frequency distribution]]
* [[Mean reversion]]
* [[Normal distribution]]
* [[Normal frequency distribution]]
* [[Tail]]
* [[Trend analysis]]
* [[Volatility smile]]


FRS 100 sets out overall financial reporting requirements.
It gives many entities a choice of detailed accounting requirements depending on factors such as:
(i) Their size. <br>
(ii) Whether or not they are part of a publicly listed group.
FRS 100 does not require any entities to apply international accounting standards that were not already required to do so.
Those eligible entities retain the option of continuing to use the UK domestic Financial Reporting Standard for Smaller Entities (FRSSE).
FRS 100 - in conjunction with FRS 101, FRS 102 and FRS 103 - is designed to:
#Implement an international-based financial accounting framework for all relevant UK and Irish reporting entities.
#Use consistent accounting language, regardless of the size of the reporting entity.
#Retain a proportionate approach to disclosure: to meet users’ information needs, without imposing excessive reporting burdens.
==See also==
* [[FRS 101]]
* [[FRS 102]]
* [[FRS 103]]
* [[FRS 104]]
* [[FRS 105]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 14:19, 23 October 2012

A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.

A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).

See also