Matching within international business?



Answers:    Dictionary of Accounting Terms
matching
process of reporting expense on a cause-effect basis against the reported revenue it relates to. Net income is measured by the difference between revenue over associated expenses during equal period. Expenses are incurred in direct to obtain that revenue. An example is the matching of sale commission expense to sales.

Dictionary of Insurance Terms
matching
requiring assets and liability of an insurance company to go up or down together on a proportional basis. The duration of the asset and liability should be approximately indistinguishable. For example, an insurance policy of 12 months in duration should be identified with an asset that mature in 12 months. As interest rates go up, thereby requiring the insurance company to repay a higher return to its policyholders, the interest earned on investments should progress up on a proportionate basis.


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