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					Accelerated capital allowances Account format Accounting

Capital allowances which give the larger part of the allowance in the early years of the asset’s life Balance sheet format which shows the assets on one side and the liabilities and capital on the other. The process of identifying, measuring and communicating economic information about an organisation or other entity, in order to permit informed judgements by users of the information

Accounting formulae Income – Expenditure = Profit (where income is greater than expenditure) Expenditure – Income = Loss (where expenditure is greater than income) Assets – Liabilities = Capital Accounting policies Principles, bases, conventions, rules and practices applied by an entity that specify how the effects of transactions and other events are to be reflected in its financial statements through recognising, selecting measurement bases for, and presenting assets, liabilities, gains, losses and changes to shareholders’ funds Accounting Standard A component of Generally Accepted Accounting Principles (GAAP), it defines best practice for specific accounting situations Accounting standards Rules to be followed by accountants when preparing financial information Accounting Standards Board Accrual Accrual basis Accrual concept The body which sets accounting standards within the UK Expenses incurred within a financial period but not paid for by the end of that financial period The production of financial statements which incorporate the effects of all transactions, whether paid for or not The non-cash effects of transactions and other events should be reflected, as far as possible, in the financial statements for the accounting period in which they occur, and not, for example, in the period in which any cash involved is received or paid Additional expenses incurred during a financial period which have not been paid for by the end of that period The comparison between the ‘quick’ assets and the current liabilities (creditors due for payment within one year) The accounting method used when combining the results of the parent and its subsidiaries. All the income, expenditure, assets and liabilities are combined, subject to adjustments for inter-company trading, minority interests and goodwill arising on consolidation. Pre-acquisition reserves are excluded from the total of group reserves A post balance sheet event that provides additional evidence of conditions existing at the balance sheet date. It will alter the figures in the financial statements. Other overheads not included within cost of sales or distribution costs The depreciation of an intangible asset Formal company meetings held once per year, at which resolutions are put forward for shareholders’ approval. The collected summarised financial information for a financial year issued to shareholders Summarised financial and other information issued to shareholders in accordance with statute, accounting or stock exchange regulations The published report sent to shareholders containing financial and other company information

Accruals Acid Test Acquisition accounting

Adjusting post balance sheet event Administration expenses Amortisation Annual general meeting (AGM) Annual report Annual report Annual report

Articles of Association Asset

Part of a company’s own regulations, setting out rules for the running of the company’s internal affairs. See also ‘Memorandum of Association’. Rights or other access to future economic benefits controlled by an entity as a result of past transactions or events. Usually split between fixed and current assets

Associated company Associated companies are established where an investing company owns between 20% and 50% of shares in another company and is subject to ‘significant influence’. Associated undertaking Audit committee An investment of between 20 and 50 percent in another business An internal company committee which monitors the system of internal control, approves the company’s accounting policies and reviews the interim and annual financial statements prior to their submission to the main Board of Directors See external auditor and internal auditor The external auditor’s report to shareholders contained within the annual report, stating whether or not the financial statements and related notes show a true and fair view of the company’s state of affairs. The report may be either unqualified or qualified. The maximum share capital a limited company is allowed to issue The maximum number of shares that the company is allowed to issue A theoretical system of stock valuation using average prices A debt due to the business where there is no hope of getting paid. It is written off as a loss to profit and loss account A financial summary showing the assets, liabilities and capital at a specific moment in time The summary of a firm’s assets, liabilities and capital at the end of a financial period Another term for debentures Free shares given to existing shareholders Another name for book of prime entry

Auditor Auditor’s report

Authorised share capital Authorised share capital AVCO (Average Cost) Bad debt Balance sheet Balance sheet

Bonds Bonus issue Book of original entry Books of prime entry The documents within the double-entry bookkeeping system where the first record of transactions are made. They include the cash book and the sales and purchase journals Bottom line The profit for the financial year after taxation and all other costs have been deducted. Often referred to by media commentators when discussing a company’s results The purchase by a company of its own shares, either for cancellation or to meet the anticipated requirements of stock option schemes The shares actually issued by a limited company. Also known as issued share capital A company’s issued share capital Instalments of a share price payable by investors following an offer for sale The value of the ownership interest in the business, calculated at any time by deducting the total liabilities from the total assets

Buy-backs Called-up share capital Called-up share capital Calls Capital

Capital allowances

Tax allowances given by government to encourage investment in fixed assets Capital commitments Amounts (or estimated amounts) of capital expenditure which have, at the balance sheet date, been contracted for, and also those authorised by the board directors, but where no contracts have been issued. Capital expenditure Another name for the purchase of fixed assets. See also revenue expenditure. Capital redemption The reserve which must be created when share capital is reduced due to reserve redemptions, or cancellations following a buy-back Capital reserves Company reserves which cannot be used for the payment of dividends Non-distributable reserves, e.g. share premium account, capital redemption reserve, revaluation reserve Carrying amount Cash Cash book Cash equivalents The value of an asset as currently shown in the business’s balance sheet For the purposes of a cash flow statement this refers not only to cash in hand but also to bank balances, less bank overdrafts Book of prime entry showing the cash and bank transactions Short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Cash flow The cash inflows and outflows of a business over a specified period. Cash Flow Statement A summary of cash inflows and outflows prepared in a format set out by an accounting standard and based on historic transactions for a financial period Chairman Chairman’s report Chief executive Company president Consolidated profit and loss account Contingent liability Continuing operations Convertible Convertible loan stock Corporation tax Cost of sales A person who chairs the Board of Directors A general report of the company’s performance given by the company’s chairman A company’s senior managing director US equivalent of ‘company chairman’ An alternative term for group profit loss account An uncertain liability which may arise due to a future event giving rise to the company having to meet a financial obligation. Those parts of the business’s operations which continue beyond the end of the financial period Non-equity shares which be converted to equity shares at future determined dates Loans which can be converted into equity shares at predetermined dates at the discretion of the lender Taxation chargeable on company profits In a manufacturing company, this comprises the costs of production such as factory wages, raw materials and manufacturing overheads including the depreciation machinery. In a trading company it comprises the cost of bought-in goods. In both cases, adjustments are made for opening and closing stocks of unsold goods or materials. The right hand side of a ledger account. Accounts with, overall, more credit entries than debit entries are said to have a credit balance. Liability accounts, income accounts and the Capital account will normally have credit balances Dividends on non-equity shares are unpaid in one year, the missed dividends are accumulated for payment out of any future years’ profits Assets such as stock and debtors which are likely to change in value within a short period from the balance sheet date

Credit

Cumulative Current asset

Current liabilities Current liability Current ratio Current taxation

Creditors due for payment within one year of the balance sheet date Amounts owed to creditors which are repayable within a year from the present time The comparison between current assets and current liabilities (creditors due for payment within one year) The amount of tax estimated to be payable or recoverable in respect of the taxable profit or loss for the period, along with adjustments to estimates in respect of previous periods Another name for journals Loans raised by a limited company, usually secured on the company’s assets The left hand side of a ledger account. Accounts with, overall, more debit entries than credit entries are said to have a debit balance. Asset accounts and expenditure accounts will normally have debit balances In relation to development costs (q.v.), a fixed asset which is not amortised until the commercial production or application of the related product, service, process or system has commenced. Amounts received by the company in advance of the company providing the goods or services The estimated future tax consequences of transactions and events recognised in the financial statements of the current and previous periods Pension scheme where the benefits paid will usually depend upon either the average pay of the employees during their career (or perhaps the last few years of it) or the employee’s final pay.

Day books Debentures Debit

Deferred asset

Deferred income Deferred taxation

Defined benefit scheme

Defined contribution Pension scheme where both employers and employees make regular scheme contributions as a fixed annual amount or as a percentage of pay. Depreciation The loss in value of a fixed asset caused by such factors as time, usage and obsolescence caused by changing technology Development costs The cost of developing a product, service, process or system. Such costs are normally written off to profit and loss account, but, exceptionally, can be included within the balance sheet as a deferred asset. Diluted earnings per An additional earnings per share calculation provided when there is the share possibility of the company issuing more shares at a later date due to its having issued stock options or convertible loan stock Direct shareholding Directors Directors’ emoluments Directors’ remuneration Directors’ report A parent company holding shares directly in its subsidiaries The individuals who act as the officers of a limited company An alternative term for directors’ remuneration The salaries, bonuses, pension contributions, fees and other benefits paid to directors Statement included within the annual report containing information required by statute or the regulatory framework which is not contained elsewhere within the financial statements

Those parts of the business’s operations which do not continue beyond the end of the financial period A deduction from an invoiced amount offered to encourage prompt payment Distributable Available for the payment of dividends Distributable reserves Reserves that can be used for dividend payments: the same as revenue reserves Discontinued operations Discount

Distribution costs Dividend Dividend Cover

Overheads relating to the distribution function, including transport and packaging expenses The reward on capital which shareholders receive from a limited company The ability of a company to pay its dividends, measured by expressing the profit available for dividends as a multiple of the dividends paid and proposed

Dominant influence Dominant influence exists when the parent can exercise power regardless of the rights or influence of any other party Double-entry A logical system which allows a record to be made of all the financial bookkeeping aspects of an entity Doubtful debt A debt due to the business where there is uncertainty as to whether the amount due will be paid, but is not yet a bad debt Earnings The profit for the financial period that is available to meet equity dividends Earnings per share Earnings divided by the number of ordinary shares issued. Eps is always (eps) measured in pence and forms part of the p/e ratio Ebitda Earnings before interest, taxation, depreciation and amortisation. An alternative, ‘unofficial’ method of calculating eps. Equity capital The ordinary (voting) shares of a limited company Equity method Accounting method used for associate companies, where the relevant proportion of the associated company’s operating profit or loss is disclosed in the consolidated profit loss account. Within the consolidated balance sheet, only the investor’s share of the net assets of its associates is included. Equity shares Exceptional items Exercise price Expenditure Exposure draft External auditor Vote-carrying ordinary shares Transactions which, because of their size or incidence, need to be disclosed separately within the financial statements The price at which shares can be purchased under a stock option scheme The cost of goods sold and related overhead expenditure incurred in a financial period A preliminary version of an accounting standard, circulated for public debate and comment An independent qualified accountant or firm of accountants who reports to the shareholders as to whether or not the financial statements and related notes show a true and fair view of the company’s state of affairs.

Extraordinary general Any meeting of shareholders other than the annual general meeting meeting (EGM) FIFO (First In First Out) A theoretical system of stock valuation which assumes that the first stock to be received is the first stock to be sold. In a period of rising prices, the unsold stock will be valued at the most recent (and highest) value.

Final accounts Final dividend

Financial statements produced at the end of a financial year A dividend proposed to be paid after shareholders’ approval at the annual general meeting following the end of the financial period Financial Accounting The day-to-day recording of an organisation’s financial transactions and the summarising of those transactions to satisfy the information needs of various user groups in accordance with the regulatory framework Financial period The period of time covered by a financial summary

Financial summary

Highlights of the company’s performance included within an annual report. The summary is unaudited and the company itself selects the information. A 12 month financial reporting period Assets intended for use on a continuing basis in the company’s activities. They must be of a material value to be classified as a fixed asset. Examples include land, buildings and machinery.

Financial year Fixed assets

Fixed assets turnover The relationship between a company’s sales and its fixed assets Fixed charge Fixed dividends Floating charge Formats Security for a loan linked to specific assets of a company Dividends of a set percentage payable to non-equity shareholders Security for a loan linked to general assets of a company Standard layouts required by the European Union which ensure consistency of presentation of published financial information by companies in member states A licence to market a company’s goods or services in a specific area The relationship between a company’s equity shareholders’ funds and its other forms of long-term funding (preference shares, debentures etc.)

Franchise Gearing

The ledger showing the key types of financial transactions undertaken by a business Going concern Financial statements are drawn up on the basis that the business can concept continue in operational existence for the foreseeable future. Good debt A debt due to the business which is expected to be paid Goodwill The difference between the cost of an investment in a business and the net assets of that business Goodwill arising on The excess of the purchase price of a subsidiary over the fair value of the consolidation net assets acquired. Gross equity method The accounting treatment of joint ventures The difference between the value of the company’s sales and its cost of sales Group A parent company and its subsidiaries Group profit and loss The combined summary of income and expenditure for a group of account companies Historic cost The traditional accounting convention which values assets at their convention purchase price at the time of acquisition with no allowance made for subsequent inflation Gross profit Horizontal analysis Hostile takeover Impairment Impersonal ledger In the money Income Income and Expenditure account Comparison of values within financial statements by calculation of percentage changes between one year and the next A bid to take over control of a company which is unwelcome by that company’s directors The reduction in the value of an asset to an amount below its value as currently shown in the business’s balance sheet (the carrying amount) The general ledger, where each account shows a ‘type’ of transaction, e.g. ‘sales’ or ‘wages’ When the exercise price of a stock option is less than the current market price The revenue generated by a business from selling its goods or services, plus sundry income such as bank interest receivable Alternative name for the profit and loss account

General ledger

Indirect shareholding Shares in a subsidiary or sub-subsidiary owned by a group company other than the parent company Indirect taxation A tax on expenditure (e.g. value added tax) Initial Public The first public offer of shares for sale made by a public limited company Offering Intangible fixed asset A fixed asset without physical substance e.g. goodwill Inter-company indebtedness Interest Cover Debts due from one group company to another The ability of a company to meet its interest commitments, measured by expressing the profit before interest as a multiple of the interest paid and payable A dividend that relates to the first few months of a financial period A dividend that relates to the first few months of a financial period Unaudited summaries of quarterly or half yearly financial information issued to shareholders in accordance with stock exchange regulations Individuals employed by the company to check the efficiency of financial reporting procedures and internal financial control Goodwill that has been generated internally and whose value has not been verified. It cannot be included within a balance sheet. Accounting standards developed by the International Accounting Standards Board and its predecessor to harmonise and improve global financial reporting practices An alternative name for unsold stock of goods and raw materials The company which has invested in the shares of another company or venture. Shareholdings of up to 20% without the ‘significant influence’ of one company on another See Initial Public Offering Loans with no set repayment date The total share capital issued to shareholders at any time, also known as ‘called up’ share capital A business operation where two or more parties jointly control the venture Two or more businesses jointly controlling a business enterprise Books of prime entry which show purchase and sales invoices A stock control system which requires suppliers to deliver materials shortly before they are to be used in production. A contract whereby one party (the lessor) grants the other party (the lessee) the right to use an asset that the lessor owns, in return for a rental. The collective name for the sales, purchase and general ledgers Obligations of an entity to transfer economic benefits as a result of past transactions or events. Usually split between current and long-term liabilities A type of business organisation whose members’ liability to meet the firm’s debts is limited to the amount of capital they have invested or agreed to invest Assets that can be turned quickly into cash when needed The sale of the net assets of a company, usually at the end of its life The availability of cash within a business

Interim dividend Interim dividend Interim report Internal auditor Internal goodwill International Accounting Standards Inventory Investing company Investment IPO Irredeemable loans Issued share capital Joint Venture Joint venture Journals Just in time (JIT) Lease

Ledger Liability

Limited liability company Liquid assets Liquidation Liquidity

Long-term contracts The contract for the design, manufacture or construction of major projects (or provision of services) which extend over more than one financial period. Long-term creditors Creditors due for payment after one year from the balance sheet date Long-term liability Amounts owed to creditors which are repayable after more than a year from the present date Loss A surplus of expenditure over income Ltd Abbreviation denoting a private limited company Management The internal accounting needs of an organisation, involving planning, Accounting forecasting and budgeting for decision-making purposes Margin Profit as a percentage of sales Mark-up The percentage added to the cost price of goods or services to arrive at the selling price Materiality A ‘threshold quality’ of financial information. To be material, its misstatement or omission might reasonably be expected to influence the economic decisions of users. Member Memorandum of Association Merger Another term for a shareholder Part of the official rules that govern a company, including its name and objects. See also ‘Articles of Association’. Two businesses combining as one, rather than one taking control of the other Minority interests That part of the equity share capital of a subsidiary company which is not owned by the parent company Minority shareholder A shareholder owning those shares in a subsidiary (or sub-subsidiary) not owned by the parent company Negative goodwill Negative goodwill arises when the price paid for a business is less than the fair value of the net assets acquired Net book value The value of a fixed asset after depreciation has been deducted Net current assets Current assets less current liabilities Net realisable value The selling price of stock after deducting all relevant costs to enable it to be sold Nominal ledger Another name for the general ledger Nominal value The ‘face value’ of a share, e.g. £1 or 25p. Also called par value Non-adjusting post A post balance sheet event that does not require any changes to be made to balance sheet event the figures contained within the financial statements, but a note is provided for information only. Non-distributable Non-equity capital Non-equity shares Non-executive director Not available for the payment of dividends Shares in a limited company other than the ordinary (voting) shares Shares without voting rights A member of the Board of Directors who does not take an active role in managing the company but is appointed for his or her objectivity in considering the company’s affairs, and wide experience of business

Note of historical An additional statement provided by some UK companies showing the cost profits and losses effect that the revaluation of fixed assets has had on the reported profit for the period Offer for sale Operating activities Operating and financial review Operating costs Operating profit An offer of shares for sale made by a public limited company The income generating activities of the business An objective commentary on the company’s performance contained within the annual report Overhead expenditure usually divided between distribution costs and administration expenses The profit left after operating costs have been deducted from the gross profit, plus any sundry income

Ordinary shares

The most common form of shares issued by limited companies. Each share carries equal voting and dividend rights. Also known as the equity capital When the exercise price of a stock option is greater than the current market price A borrowing facility offered by a bank which carries a fluctuating interest rate and is repayable on demand The general expenses of a business such as those related to administration, distribution and selling. It does not include the cost of the goods bought for resale.

Out of the money Overdraft Overhead expenditure Over-subscription

This occurs when potential investors have applied for more shares than are available in an offer for sale. Par value Another term meaning nominal value Parent company The ultimate holding company of the group. It controls the shareholdings in other group companies. Partnership The relation which subsists between persons carrying on a business in common with a view of profit Partnership Part of the profit and loss account of a partnership, showing how profits or appropriation account losses are apportioned between partners according to their partnership agreement PBIT PE ratio Permanent differences Personal ledger Placing Plc Position statement Positive goodwill Profit before interest and tax See ‘Price/Earnings ratio’ Differences between a company’s taxable profits and its accounting profits. They arise because certain types of income and expenditure are non-taxable or disallowable The sales ledger and purchase ledger, containing customers’ and suppliers’ accounts respectively Shares sold by company to financial institution which then ‘places’ them with its own clients Abbreviation denoting a public limited company Alternative name for balance sheet An amount in excess of the fair value of the net assets of a business, representing the value of the reputation of the company and its ability to make future profits. It can only be included in a balance sheet if it has been paid for. An event which occurs between the balance sheet date and the date on which the directors meet to approve the financial statements. It can be either adjusting or non-adjusting. Reserves earned by a subsidiary after it became a subsidiary Reserves earned by a subsidiary before it became a subsidiary A class of shares carrying a fixed rate of dividend and giving the holders preference over equity shareholders regarding payment of dividends and repayment of capital in the event of the company’s liquidation

Post balance sheet event Post-acquisition reserves Pre-acquisition reserves Preference shares

Preliminary research Investigating the company’s background prior to a detailed numerical analysis Prepayment Expenses paid for within a financial period which relate to the following financial period Price/earnings Ratio Market price as a multiple of the latest earnings per share. Used as a relative measure of stock market performance

Primary financial statement Private limited company Profit Profit and loss account Profit on ordinary activities before interest and taxation Prospectus

A financial summary of importance, such as the profit and loss account, balance sheet and cash flow statement. A limited company which is prohibited from selling its shares to the public, denoted by ‘ltd’ after the company’s name A surplus of income over expenditure The name given to a summary of income and expenditure, often abbreviated to ‘P & L account’ The operating profit for the period after adjustments for profit or losses on the disposal of fixed assets, termination or sale of business segments, or from joint ventures, but before interest and taxation Detailed information given by a public company when offering shares for sale, so that potential investors have enough detail about the business to make a decision as to whether or not to buy the shares Any amount written off by way of providing for depreciation or diminution in the value of assets; or any amount retained to provide for any liability or loss which is either likely to be incurred, or certain to be incurred but uncertain as to the amount or as to the date on which it will arise. A company which is allowed to sell its shares to the general public, denoted by ‘plc’ after the company’s name. It must have 1t least £50,000 authorised and issued share capital The annual report of a limited company, produced in accordance with the legislation and other relevant rules and regulations laid down by the accounting profession or the Stock Exchange The annual report sent to shareholders The ledger showing the accounts of the suppliers from whom the business buys goods or services on credit terms An external auditor’s report to shareholders that contains a qualified opinion. Qualifications range from a disagreement on specific matters, to a full-scale adverse opinion stating that the accounts do not show a true and fair view. Assets that can be turned quickly into cash. Usually the current assets, other than stock and work-in-progress Detailed numerical analysis of a company’s financial statements Shares which are repayable by the company at future determined dates Earliest and latest redemption or conversion dates. Shown within the description of the loan stock, e.g., 5% Convertible Loan Stock 2014-2018 The net book value of a fixed asset A method of allocating depreciation which uses the assumption that the loss in value is greater in the early years than in the later year’s of the asset’s life The rules and regulations followed by financial accountants, imposed (in the UK) mainly by company legislation and the Accounting Standards Board

Provision

Public limited company Published accounts

Published report Purchase ledger Qualified auditor’s report

Quick Assets Ratio analysis Redeemable Redemption dates

Reduced value Reducing balance method Regulatory framework Related party

Organisations or individuals who have some influence on the operating or financial policies of the business. Retained profits The profits left over after all appropriations (tax, dividends, etc.) have been made Revaluation A reappraisal of the current value of a fixed asset. Revaluation reserve A non-distributable reserve created when fixed assets are revalued at values greater than their existing value. A negative revaluation reserve might arise if the assets are revalued at less than their existing value.

Revenue expenditure The cost of the goods sold, and associated overheads such as wages, rent, and rates. See also capital expenditure. Revenue reserves Reserves built up from retained profits via the profit and loss account of a limited company. They can be used to pay dividends Reverse split See Share consolidations Rights issue The right given to existing shareholders to buy more shares ROCE Return on capital employed Sales ledger The ledger showing the accounts of the customers who buy goods or services on credit terms Sarbanes-Oxley Act US legislation designed to strengthen investor protection 2002 Segmental reporting Analysis of performance between the main classes of business and geographical areas in which the company trades Share consolidations An increase in a share’s nominal value, leading to a corresponding increase in the market value Share premium If a company sells its shares at a price greater than its nominal value, the excess is known as a share premium, and must be placed in a Share Premium Account Share Premium Account Share splits Shareholder Significant influence The capital reserve built up from amounts paid by shareholders for their shares, in excess of the nominal value of those shares The division of nominal value into smaller denominations The owner of one or more shares in a limited liability company Significant influence exists when the investing company is actively involved in formulating the operating and financial policies of the company in which it has invested.

Sole trader Solvency

A business organisation owned by one individual The ability of a business to meet its debts as they fall due. The opposite is insolvency. Statement of financial Alternative name for balance sheet position Statement of income An alternative term (often used within the EU) for the profit loss account Statement of operations Statement of total recognised gains and losses Stock options An alternative term (often used within the US) for the profit and loss account An additional statement provided by some UK companies which summarises all gains and losses for the financial period

The right of directors and employees to buy shares in their company at a specified price within a set time period Stock turn The speed at which stock is sold by a company. Straight line method A method of allocating depreciation which uses the assumption that the loss in value occurs evenly over the asset’s life Subsidiary A company that has the majority of its shares owned by its parent company Sub-subsidiary A company which is the subsidiary of another subsidiary Takeover The purchase of one company by another. Tangible fixed asset A fixed asset with physical substance e.g. land and buildings Tender issue A company invites potential shareholders to state the price at which they are prepared to buy the shares for sale Timing differences Differences between a company’s taxable profits and its accounting profits which may give rise to future taxation liabilities or assets Trade creditors Amounts owing for goods and services

Trade creditors’ payment period Trade debtors’ collection period Treasury shares Trend analysis Trial balance True and fair view

How quickly the company pays its trade creditors How quickly trade debtors pay their bills to the company A company’s own shares which it has purchased in a ‘buy-back’ (US: Treasury stock) A numerical analysis of a company’s results, using one year as the base year, and showing subsequent years in relation to that base year. A check made to see if the total debits in the bookkeeping system equal the total credits An accounting concept requiring financial summaries to reflect a reasonable and objective approach in their representation of the organisation’s affairs The revenue resulting from exchange transactions under which a seller transfers to customers the goods or services that it is in business to provide The geographical segment to which products or services are supplied

Turnover

Turnover by destination Turnover by origin

The geographical segment from which products or services are supplied to a third party or to another segment Under-subscription This occurs when potential investors have applied for less shares than are available in an offer for sale Underwriting An agreement by an underwriter to buy any shares left unsold following an offer for sale by a public company Unqualified auditor’s An external auditor’s report to shareholders, stating that the financial report statements show a true and fair view and comply with the relevant regulatory framework User groups Vertical analysis Key groups who have a need for financial information Analysis of the relative weighting of components within financial statements by expressing them as a percentage of a key component in that statement Balance sheet presentation which shows the share capital and reserves below the total net assets, and allows a separate sub-calculation to be shown for net current assets Partly completed goods Net current assets The percentage return obtained from an investment

Vertical format

Work in progress Working capital Yield


				
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