The Asset Revaluation Reserve, often referred to as the Revaluation Reserve Account, represents the adjustments made to the value of a company's assets that are reflected on its balance sheet. This reserve is critical for accurately depicting the fair value of an entity's assets over time.
Asset stripping involves acquiring a company whose share price is undervalued relative to its asset value, selling its assets for profit, typically at the expense of other stakeholders.
Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue. It is an important metric to assess how well a company is utilizing its assets to produce revenue.
Asset valuation involves determining the current worth of an organization's assets, considering various valuation methods including revaluation and present value calculations.
The total value of a company's assets less its liabilities, divided by the number of ordinary shares in issue. This represents the theoretical amount attributable to each share if the company was wound up.
Asset-Backed Commercial Paper (ABCP) refers to short-term debt instruments issued by financial institutions, which are backed by physical assets such as receivables, leases, or loans.
Asset-backed commercial paper (ABCP) is a short-term debt instrument issued by a special purpose vehicle (SPV) that is backed by various assets like trade receivables, auto loans, or other commercial assets.
An Asset-Backed Fund involves investing in tangible or corporate assets, such as property or shares, providing potential growth aligned with inflation, in contrast to traditional bank savings.
An Asset-Backed Medium-Term Note (ABMTN) is a type of debt security that is secured by a pool of assets and typically has a maturity period ranging from one to ten years.
An Asset-Backed Medium-Term Note (ABMTN) is a financial instrument combining the attributes of medium-term notes and asset-backed securities, typically used to raise capital through securitization.
Asset-Backed Securities (ABS) are financial instruments backed by loan paper or accounts receivable originated by banks, credit card companies, or other providers of credit, often enhanced by a bank letter of credit or by insurance coverage from a third party.
An asset-backed security (ABS) is a financial instrument that represents a claim on the cash flows generated by a pool of underlying assets, such as mortgages, car loans, or credit-card receivables.
An assets register, commonly referred to as a fixed-assets register, is a detailed ledger used by organizations to track and manage their fixed assets, including the acquisition, depreciation, and disposal of these assets.
Assigning is the act of transferring ownership or rights from one party to another. This process involves an assignor who executes the transfer and an assignee who receives it.
In automobile insurance, 'assigned risk' refers to a classification of drivers to whom insurance companies will not issue policies voluntarily due to their high-risk profile, commonly resulting from a history of accidents or violations. These individuals are assigned to insurance companies by state law and are required to pay higher premiums.
An assignee is a person, company, or entity to whom an agreement, contract, or right is sold, given, or transferred. This legal transfer allows the assignee to step into the shoes of the assignor and assume their rights and obligations under the original contract.
The act of transferring property, rights under a contract, or benefits under a trust to another person, or a document (a deed of assignment) facilitating such a transfer. This term also encompasses the transfer of bank loans between financial institutions to mitigate credit risk.
The 'Assignment of Income' doctrine is a tax principle that prevents taxpayers from avoiding tax by directing income they have earned to another person.
The transfer of a lease by the tenant (assignor) to another person (assignee). Leases are generally transferable at common law, although restrictions may apply.
A transfer of the legal right under a life-assurance policy to collect the proceeds, initiated by notifying and receiving agreement from the life insurer.
An assignor is the party who assigns or transfers an agreement or contract to another entity or individual. In a legal context, this transfer of rights or interests enables the assignee to assume the assignor's privileges and obligations under the contract.
Assimilation in finance refers to the absorption of a new issue of stock by the investing public after all shares have been sold by the issue's underwriters.
An associated undertaking, or associate, is a company that is not classified as a subsidiary but in which another company or group exercises significant influence. Accounting for associates is regulated by Section 14 of the Financial Reporting Standard Applicable in the UK and Republic of Ireland and International Accounting Standard 28 (IAS 28), Investments in Associates.
ACIS stands for Associate of the Institute of Chartered Secretaries and Administrators, a professional designation for corporate governance, compliance, and company secretarial professionals.
AIAB stands for Associate of the International Association of Book-keepers, a professional designation representing advanced knowledge and expertise in bookkeeping and accounting practices.
An association is a body of persons united without a charter, but upon the methods and forms used by incorporated bodies, for the prosecution of some common enterprise. Some entities may be associations taxable as a corporation.
APACS, established by UK banks in 1985, managed payment clearing and money transmission in the UK through its Interest Groups focused on card payments, cash services, electronic commerce, and liquidity management. It was succeeded by the UK Payments Administration in 2009.
The Association of Accounting Technicians (AAT) is a professional membership body dedicated to the education, development, regulation, and support of accounting technicians worldwide.
The Association of Accounting Technicians (AAT) is a professional body established in 1980 by the Consultative Committee of Accountancy Bodies (CCAB) to provide a second-tier accounting qualification. This qualification can enable individuals to eventually obtain a full CCAB qualification.
The Association of Authorized Public Accountants (AAPA) is a UK professional body for qualified accountants who have been authorized to conduct company audits. In 1996, it became a subsidiary of the Association of Chartered Certified Accountants (ACCA).
The Association of Certified Fraud Examiners (ACFE) is a global professional organization with over 35,000 members dedicated to combating fraud and providing anti-fraud education and training in the business sector. The ACFE awards the Certified Fraud Examiner (CFE) designation, which is recognized worldwide.
The Association of Chartered Certified Accountants (ACCA) is a global professional accounting body offering the Chartered Certified Accountant qualification.
The Association of Chartered Certified Accountants (ACCA) is one of the largest and most prestigious professional accountancy bodies in the world, with over 140,000 members in 170 countries, known for its rigorous certification process and global standards.
The Association of Corporate Treasurers (ACT) is an organization established to encourage and promote the study and practice of treasury management in companies. Despite being relatively small compared to professional accounting bodies, it has made a significant impact in corporate treasury management.
The Association of Independent Financial Advisers (AIFA) is the trade body for independent financial advisers in the UK, established in 1994. It represents the views of the profession to the Financial Services Authority, parliament, and other policymakers and promotes the benefits of financial advice to the public.
The Association of International Accountants (AIA) is a professional body for accountants committed to promoting the idea of 'international accounting.' Established in the UK in 1928, AIA now boasts members in over 85 countries. Full members can be associates (AAIA) or fellows (FAIA) and are known as international accountants, being part of a Recognized Qualifying Body.
A mortgage loan that permits a new home purchaser to undertake the obligation of an existing loan without altering loan terms. Typically applicable to FHA and VA loans.
The assumption fee is a charge levied by a lender to a buyer who assumes the existing loan on the subject property. It compensates the lender for administrative costs associated with transferring the loan.
Assumption of mortgage involves assuming the obligations of a mortgagor toward a mortgagee, usually as part of the purchase price of real estate. This entails the purchaser taking personal liability for the debt unless a novation releases the original borrower.
A technique of risk management where an individual or business assumes expected losses that are not catastrophic, protecting against catastrophic losses through insurance.
Insurance against an eventuality, especially targeting events that must occur such as death. Commonly related to life assurance, it provides a guaranteed payout upon the occurrence of the insured event.
In the context of life assurance policies, the 'assured' is the individual who stands to receive the benefit of the policy upon the death of the insured or when the policy matures, ensuring a secure financial future.
The asterisk (*) character is used for several purposes, including as a reference mark for footnotes, representing multiplication in mathematical expressions, and as a wildcard in filename and data searches.
Processes that are not synchronized, allowing for actions to happen independently at different times. Frequently used in computing and networking to refer to data transmission where operations occur independently.
The term 'at par' refers to a financial instrument, such as a bond, that is trading at its face value. In other words, the market price of the bond is equal to its nominal or par value.
In the context of investments, 'at risk' refers to being exposed to the danger of a financial loss. Specifically, for investors in a limited partnership, they can claim tax deductions only if they can demonstrate a possibility of losing their invested capital.
The term 'at sight' is commonly used on a bill of exchange to indicate that payment is due upon presentation. It is an immediate payment term contrary to 'after date' or 'after sight' terms.
The '@' symbol, historically used in pricing, has gained contemporary significance mainly through its use in email addresses, representing the word 'at' as a separator between username and domain.
An order to buy or sell a security within the final 30 seconds of the trading session. Brokers cannot guarantee that these orders will be executed.
Describing a call or put option in which the exercise price is the same (or very nearly the same) as the current market price of the underlying asset.
Customer's order to a broker to buy or sell a security at the price that applies when an exchange opens. If the order is not executed at that time, it is automatically canceled.
At-risk rules are tax laws designed to limit the amount of tax losses an investor can claim from certain industries, including oil and gas, movie production, farming, and real estate. These rules ensure that losses are deductible only to the extent of money the equity investor stands to lose.
ATT stands for Associate of the Association of Tax Technicians, a professional qualification for employees working in taxation. It is particularly aimed at individuals operating at a level below that of the Chartered Institute of Taxation members.
Attachment is a legal procedure that allows a creditor who has obtained a court judgment to secure payment from a debtor. This can include freezing money or property owed to the debtor by a third party and redirecting it to the creditor.
Attainable standard refers to a cost or income standard set at a level that is achievable by operators under realistic conditions during the relevant cost period.
The insured's age at a specific point in time, often used to determine premiums and eligibility in insurance policies.
The act of noticing an advertisement or commercial; a component of information or perceptual processing. Given that consumers typically focus on items relevant to their needs, attitudes, or beliefs, attention is inherently selective. There have been instances in advertising history where attention was captured by the advertisement itself rather than the product being promoted.
An attention line is commonly used on labels or envelopes to specify the name of the intended recipient of a shipment, ensuring that packages are directed to the correct individual within an organization.
In accounting and legal contexts, to 'attest' means to bear witness to an act or event, confirming its authenticity and validity. This act often involves a third-party certification, ensuring that particular documents and signatures are legitimate.
An attest function is performed by a qualified auditor who provides an audit opinion on the truth and fairness of the financial statements of an organization.
Mental position or emotional feelings about products, services, companies, ideas, issues, or institutions. Attitudes are shaped by demographics, social values, and personality.
An attorney-at-law is a professional authorized to practice law in a specific jurisdiction, engaging in both civil and criminal legal activities on behalf of clients.
An attorney-in-fact is an individual who is authorized to act on behalf of another person under a power of attorney, which can be general or limited in scope. This designation does not require the individual to be an attorney-at-law.
Attornment refers to a tenant's formal agreement to acknowledge a new owner or landlord of the property as their landlord.
An attractive nuisance is a legal concept in the context of property law. It refers to a hazard on a property that is inherently dangerous and particularly alluring to children, causing the property owner to assume liability for any accidents that occur as a result.
Attributable profit is the portion of the total estimated profit from a long-term contract, reflecting the fair share of work completed, minus estimated remedial, maintenance, and other non-recoverable costs at a specific accounting date.
In accounting and auditing, an attribute is a specific characteristic or feature that each member of a population either has or does not have.
Attribute sampling is a statistical procedure used to analyze qualitative characteristics of a population in terms of possession or non-possession of the attribute.
Attributes sampling is a statistical sampling method used to estimate the proportion of a population that possesses a specific attribute, commonly utilized by auditors in compliance tests to identify deviations from required control procedures.
Attrition is the normal and uncontrollable reduction of a workforce due to retirement, death, sickness, and relocation. It provides a natural way for organizations to reduce their workforce without taking overt management actions, though it can lead to unpredictability and gaps.
An auction, also known as an auction sale, is a method of marketing property without a set price wherein bids are taken and the property is sold to the highest bidder.
Centralized securities trading markets where securities are bought and sold in an orderly manner through security brokers. Securities, including equities, bonds, options, closed-end funds, and futures, are traded based on bid and offer prices.
Auction Market Preferred Stock (AMPS) refers to a type of preferred stock in which the dividend rate is reset at periodic intervals through a Dutch auction process, allowing for competitive bidding and market-based pricing.
Auction Market Preferred Stock (AMPS) is a type of U.S. preference share where the dividend is variable and set through an auction process among investors.
Auctioning is a market mechanism in which goods and services are sold to the highest bidder through a structured and competitive bidding process, often conducted online.
An audience can refer to a group of people assembled to witness a presentation or performance, or the total number of individuals who are exposed to media or advertising content.
An independent examination and subsequent expression of opinion on the financial statements of an organization, involving collecting evidence through compliance and substantive tests.
The Audit and Assurance Council is a body established in 2012 to advise the Financial Reporting Council on matters related to audit and assurance, including the issuance of codes and standards. Unlike its predecessor, the Auditing Practices Board, the Council has a more limited and purely advisory role.
Audit Command Language (ACL) is a specialized software designed for auditors and financial professionals. ACL allows for data extraction, data analysis, and fraud detection in a versatile and efficient manner.
Audit Command Language (ACL) is an industry-standard computer-assisted audit tool developed by ACL Services Ltd. It enables auditors to analyze large volumes of data in various formats to detect anomalies that may indicate fraud, weak controls, or other areas of concern. The company offers a range of data-analytics software for audit, risk-management, and compliance professionals.
The Audit Commission was an independent public body responsible for ensuring that public money was spent economically and effectively in various sectors including local government, housing, health, and emergency services across England and Wales. It was replaced in 2015 by a new audit and accountability framework.
In public companies, a committee of non-executive directors that is responsible for oversight of financial reporting, internal and external audits, compliance with regulatory codes, and risk management. This committee enhances accountability, auditor independence, and public confidence.
An audit completion checklist is a crucial tool used by audit staff to ensure that the financial statements being audited provide a true and fair view in compliance with statutory disclosures and accounting standards.
Audit evidence encompasses the information and data collected by auditors to form an audit opinion on the financial statements of an enterprise. This evidence is derived from a variety of sources and through different methodologies to ensure the accuracy and reliability of the financial statements.
Audit exemption is the exemption from statutory audit by a registered auditor that can now be claimed by most small companies.
The divergence between the perceived role of an auditor and the expectations of financial statement users, subdivided into communication and performance gaps.
Audit Fees, also known as auditors' remuneration, are the amounts payable to auditors for conducting an audit of a company's financial statements, which must be distinguished from fees for non-audit work and approved during the company's annual general meeting.
An audit limited in scope due to restrictions on certain accounts, reduced period, or restricted access to records. Often pertinent in accounting and taxation scenarios.
A written document that explains the auditing policies and procedures of a firm, ensuring consistency and compliance in auditing practices.
An audit opinion is an expression provided by auditors within an auditors' report, stating whether the financial statements have been prepared consistently using appropriate accounting policies and standards, and if there is adequate disclosure of vital information.
A document outlining the strategy for managing inherent and control risks in relation to the financial statements of an audit client.
An audit program is a detailed listing of the steps to be taken by an auditor, such as a Certified Public Accountant (CPA), when analyzing transactions to determine the acceptability of financial statements. Major accounting firms may prepare an audit program for each client and require the person who does the work to sign or initial each step performed.
The Audit Programme is a document outlining individual audit tests to be performed as per the audit plan to ensure that the accounting system operates efficiently and effectively.
An audit report is a formal opinion or disclaimer issued by an auditor as a result of an audit or evaluation of an entity’s financial statements. It represents the auditor's findings and communicates them to the stakeholders.
Audit risk refers to the risk that auditors fail to qualify their audit report when the financial statements are materially misleading, i.e., do not provide a true and fair view. Audit risk is comprised of three components: inherent risk, control risk, and detection risk.
Audit rotation refers to a regulatory or policy requirement that mandates the periodic changing of an audit firm or auditor for a company to maintain the audits' objectivity and independence.
Computer programs used by auditors to examine an enterprise's computer files and review the system for compliance tests and substantive tests.
An audit strategy outlines the general approach and key components of the audit, serving as a blueprint for the audit plan, which details the specific procedures and steps to be taken.
An in-depth look into the purpose and different types of audit tests, including compliance tests and substantive tests, which are crucial for assessing the accuracy and completeness of financial statements.
An audit trail, also known as a paper trail, is the sequence of documents, computer files, and other records that provide detailed evidence of a transaction, allowing auditors to trace and verify the integrity of the transaction from start to finish.
