Directors' and Officers' Liability Insurance (D&O Insurance) offers coverage for the personal liabilities of corporate directors and officers arising from their actions or decisions made on behalf of the company. This insurance provides protection against legal judgments and the associated costs of defense such as legal fees and court costs.
Directors' interests refer to the interests held by directors in the shares and debentures of the company of which they are a director. These interests extend to options on shares and debentures and must be disclosed to comply with the Companies Acts.
Directors' remuneration, also known as directors' emoluments, refers to all forms of compensation directors receive from their office or employment. This includes salaries, fees, wages, perquisites, and other profits, as well as expenses and benefits paid or provided by the employer.
An annual report by the directors of a company to its shareholders, which forms part of the accounts required to be filed with the Registrar of Companies under the Companies Act. It includes information on the company's activities, performance, future developments, and other crucial matters.
A directory is an area on a disk where files are stored, which may also contain subdivisions known as subdirectories. Modern operating systems like Microsoft Windows and macOS refer to directories as 'folders'.
A dirty float, also known as a managed float system, is an exchange rate system where the value of a currency is determined by supply and demand factors in the foreign exchange market, but where the government or central bank occasionally intervenes to stabilize or manage the currency.
A dirty float (also referred to as a 'managed float') is an exchange rate system in which a country's currency value is primarily determined by market forces, such as supply and demand, but with occasional intervention by the central bank. This intervention can take the form of buying or selling the country's own currency to stabilize or alter its value. The goal is often to prevent excessive short-term fluctuations and to maintain a more stable economic environment.
A 'disability' is a physical or mental impairment that significantly limits one's ability to perform substantial work for a period of at least one year or is expected to result in death. Qualification for Social Security disability benefits is contingent on meeting this definition.
Income provided under a disability policy, distinct from Workers' Compensation, usually expressed as a percentage of the insured's income prior to disability, with limits on the amount and duration of benefits.
Disability Income Insurance is a type of health insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of illness, sickness, or accident.
The Disability Program is one of the five programs within the Social Security System that provides monthly payments to eligible workers with disabilities and, in some cases, their family members.
Incentives under the Social Security disability program that encourage disabled workers to return to work. The four specific incentives are trial work period, extended period of eligibility, deductions for impairment-related expenses, and Medicare continuation.
Disaffirm refers to the action of repudiating or disclaiming the intention of being obligated under a contract or agreement, often seen in the context of voidable contracts.
Loss from a disaster in an area declared by the President as warranting federal assistance.
Disbursement refers to a payment made by an agent, often a professional such as a solicitor or banker, on behalf of a client. This amount is typically claimed back when the client receives an account for the professional services.
Discharge in bankruptcy refers to the release of a bankrupt debtor from most liabilities pursuant to a confirmed plan of reorganization. Some debts are not subject to discharge.
Discharge in bankruptcy refers to the formal release of a debtor from the legal obligation to pay off all or a portion of their debt, typically following bankruptcy proceedings. It removes the debtor's liability for certain debts while providing a fresh financial start.
A Discharge of Lien is a legal instrument issued by the appropriate authorities or courts that effectively release a lien on property once the underlying debt or claim has been paid or resolved to the satisfaction of the lienholder.
A disciplinary layoff is a suspension or temporary removal of a worker as a penalty for violating work rules on the job. This form of layoff entails the suspension of all salary payments during the layoff period.
A disclaimer is a statement or assertion that denies or renounces a claim, right, or responsibility. It is commonly used in various contexts such as legal claims, property rights, insurance policies, and professional opinions.
A disclaimer of opinion is a statement made by an auditor indicating that they could not obtain sufficient evidence to form an opinion on the financial statements due to a significant limitation on the scope of the audit.
Disclosure involves the provision of financial and non-financial information to stakeholders interested in the economic activities of an organization. It is standard practice for transparency and accountability in modern businesses.
A disclosure statement is a legally required document in which sellers must reveal specified information to potential buyers. It ensures transparency in various transactions, particularly in real estate and investment interests.
Discontinued operations refer to the sale, disposal, or planned sale in the near future of a business segment, such as a product line or class of customers. The financial results of these operations are reported separately in the income statement.
Discontinued operations refer to components of a business that have been sold or permanently closed down, and their financial results are separated from continuing operations for reporting purposes.
A discount granted by a company to a client, for example for a bulk purchase or a prompt payment. It is shown as an expense in the profit and loss account.
A discount bond is a bond sold for less than its face value or par value. When the bond matures, the investor receives the face value of the bond. Discount bonds can be treasury, municipal, corporate, etc. They offer a way for the issuer to raise capital by selling at a reduced price.
A brokerage house that executes orders to buy and sell securities at rates lower than those charged by a full-service broker. In real estate, provides fewer services at reduced commissions.
The discount factor, also known as the present-value factor, is a figure used to determine the present value of future cash flows by considering the time value of money and a specific hurdle rate.
A discount house, typically a specialized financial institution or bank, focuses on operating in the discount market, primarily dealing with the discounting of bills of exchange, including Treasury bills.
In the realm of accounting, a 'discount' refers to a variety of reductions applied to amounts due or outstanding, impacting both operational transactions and financial statements.
In the UK, the discount market refers to a segment of the money market where banks, discount houses, and bill brokers engage in the discounting of bills and short-term financial instruments to facilitate liquidity and profitability.
Discount points are amounts paid to the lender at the time a loan is originated, often by the seller, to bridge the gap between the market interest rate and the lower face interest rate of the note.
An interest or cost of capital rate applied to discount factors in discounted cash flow (DCF) appraisals, used in determining the present value of future cash flows.
A discount granted to a supplier for bulk purchases or prompt payment, usually recorded as a credit in the profit and loss account, reducing the overall expense.
A retail store offering a broad range of merchandise similar to department stores but at lower prices, often focusing on budget-conscious consumers.
The Discount Window is a facility provided by the Federal Reserve where banks can borrow money at the discount rate. This facility is meant for financial institutions that are in need of short-term funding to meet reserve requirements.
Discount yield is a method to calculate the annualized yield on a security sold at a discount, such as U.S. Treasury bills. It provides an approximation of the return on investment based on the difference between the purchase price and the face value of the security.
Discounted Cash Flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is then used to evaluate the potential for investment.
Discounted Cash Flow (DCF) is a financial valuation method used to appraise investments, architectures in capital budgeting, and other expenditure decisions by analyzing the predicted cash flow stream (incomes and outflows) and discounting them to present values using a specific cost of capital or hurdle rate.
A discounted loan is a financial instrument that is offered or traded for less than its face value. It involves an initial discount from the loan's nominal amount, effectively making it cheaper for the borrower at inception.
Discounted Payback Method is a method of capital budgeting in which managers calculate the time required for the forecasted discounted cash inflows from an investment to equal the initial investment expenditure, considering the time value of money.
Discounted Present Value (DPV) is a financial metric used to determine the current worth of a series of future cash flows, discounted back to their present value. It helps in evaluating the profitability and feasibility of investments and projects.
The discounted value is the present worth of a future sum of money or stream of cash flows, given a specific rate of discount. It plays a critical role in various financial assessments.
Discounting refers to the application of discount factors to cash flow projections in discounted cash flow analysis and the process of selling a bill of exchange before its maturity at a discounted price.
Discounting the news refers to the practice of adjusting a firm's stock price in anticipation of forthcoming good or bad news regarding the company's prospects.
Discovery is a modern pretrial procedure by which parties gain information held by the adverse party. Common types of discovery include depositions, interrogatories, and the production of documents.
A statistical method used in auditing and quality control to ensure that the proportion of units with a particular attribute (such as an error) does not exceed a predefined threshold in a population.
Discovery value accounting is a widely used method in the USA for extractive enterprises, where increases in discovered reserves elevate the value of assets and predict future earnings.
In various professional fields, a discrepancy refers to the deviation between what is expected and what actually occurs, or the disagreement between conclusions of multiple parties regarding the same matter.
Discretion refers to the freedom of a person to make choices within the boundaries of their authority, as well as the quality of being cautious and considerate in what one says or does.
Discretionary costs are expenses that can be easily adjusted or managed by a firm’s management, often including items such as advertising, repairs and maintenance, and research and development.
Discretionary Costs, also known as Managed Costs, are those costs incurred as a result of managerial decisions where the extent of these costs is subject to managerial discretion. These costs often relate to specific amounts or follow a pre-determined formula, such as a percentage of sales revenue. Examples include advertising and research expenditure.
Discretionary income is the amount of spendable income remaining after the purchase of physical necessities, such as food, clothing, and shelter, as well as the payment of taxes. Marketers of goods other than necessities compete for the consumer's discretionary dollars by appealing to various psychological needs, as distinguished from physical needs.
Discretionary Policy refers to government economic policies that are not automatic or built into the system but require active intervention by policymakers to influence economic activities.
The spending capability that is not mandated by law or required automatically within the system, allowing individuals or organizations to allocate their funds according to their choices and preferences.
A Discretionary Trust is a type of trust where the shares of each beneficiary are not fixed by the settlor but can be varied at the discretion of the trustees or another appointed person.
The Discriminant Function System (DIF) is an IRS technique using mathematical formulas programmed into computers to identify and select tax returns for examination. This secret system permits the IRS to rank the selected returns according to the greatest potential for tax error by weighing significant return characteristics.
Discrimination involves applying special treatment (generally unfavorable) to an individual solely on the basis of the person's ethnicity, age, religion, or sex.
In the USA, a Discussion Memorandum is a preliminary document published by the Financial Accounting Standards Board (FASB) before issuing a Statement of Financial Accounting Standards (SFAS). It specifies the topic under consideration, describes the alternative accounting treatments, and explains the perceived advantages and disadvantages of each treatment.
Diseconomies refer to costs resulting from an economic process that are not borne by those directly involved in the process, often leading to negative externalities. Pollution is a common example where the polluters do not bear the resultant costs.
A market condition characterized by significant shifts in demand or supply, resulting in market prices that have not adjusted sufficiently to clear the market. Disequilibrium features excess demand or supply and arises from changing factors affecting demand and supply.
Disguised unemployment refers to individuals who want full-time employment but do not have it and are not actively seeking work, thus are not reflected in official unemployment statistics. It also pertains to individuals who are on payroll but do not contribute to productivity.
Dishonor refers to the refusal, whether rightly or wrongly, to make payment on a negotiable instrument when such an instrument is duly presented for payment.
A comprehensive overview of the accounting term 'dishonour,' referring to the failure to pay a cheque, accept or pay a bill of exchange, or honour any other financial obligation.
Disinflation refers to a decrease in the rate of inflation – a slowdown in the rate at which prices are increasing across the economy. Unlike deflation, disinflation is characterized by a reduction in the inflation rate over time, without causing a drop in economic output or employment.
Disintermediation refers to the removal of intermediaries from financial transactions. This process, driven by technology, deregulation, and globalization, reduces costs but may increase credit risk.
Disinvestment refers to the process of reducing investment in a particular activity, asset, company, or location. Often used in the context of government policies and corporate strategy, it involves selling off or liquidating assets to reallocate resources more effectively.
Disjoint events, also known as mutually exclusive events, are pairs of events in a probability space that cannot occur at the same time.
A computer memory device consisting of a platter with a magnetically encoded surface that retrieves data by being spun past read heads. Disks can be internal (hard disks) or removable. A common example is the Compact Disc (CD).
Device that enables a computer to read and write data on disks, serving as a core component for data storage and retrieval.
A Disk Operating System (DOS) is a computer operating system that utilizes a disk storage device such as a floppy disk, hard disk drive, or optical disc as a memory. DOS is used for performing functions such as file management, program loading, and running software applications.
DOS (Disk Operating System) is an operating system primarily used in the early days of personal computing to manage disk storage and file systems. It is known for its command-line interface and was widely used before the advent of graphical user interfaces.
Permanent termination of employment with an organization; being fired from a job.
A dispatcher in the transportation industry is an organizer responsible for maintaining the route schedule and informing workers of their schedules and tasks. They play a crucial role in ensuring efficient operations and communication within transportation services.
Disposable income is the amount of money that individuals have available for spending and saving after personal taxes have been accounted for.
Disposal value, also known as residual value or salvage value, is the estimated amount that an owner expects to obtain from the sale of an asset at the end of its useful life.
A Disposals Account is used in accounting to record the removal of a fixed asset from the ledger, capturing its original cost, accumulated depreciation, and the amount received upon disposal.
Dispossess refers to the act of ousting, ejecting, or excluding another party from the possession of lands or premises. This can occur through legal processes or wrongful actions.
Dispossess Proceedings, also known as eviction, are a legal process used by landlords to remove tenants and regain possession of property.
A disproportionate distribution occurs when some shareholders receive cash or other property while others see an increase in their proportionate interests in the assets or earnings and profits of the corporation. This typically leads to an unequal allocation of the corporation's resources among its shareholders.
The term 'disproportionate expense and undue delay' refers to circumstances in traditional UK accounting practices where an individual subsidiary undertaking might be excluded from consolidated financial statements due to excessive cost and time requirements to obtain the necessary information.
Dissaving, or negative saving, occurs when consumer spending exceeds disposable income, often financed through accumulated savings or loans.
In traditional UK accounting practice, 'Dissimilar Activities' served as a reason for excluding a subsidiary undertaking from the consolidated financial statements of a group. It applied to situations where the activities of one undertaking differed significantly from others in the group, potentially compromising the obligation to present a true and fair view. However, current standards under both the Financial Reporting Standard (FRS) applicable in the UK and Ireland and International Accounting Standards (IAS 27) no longer allow exclusions on these grounds.
Dissolution marks the formal conclusion of a business entity, such as the cessation of a partnership or the liquidation of a company, executed through various legal mechanisms to terminate business operations.
Distraint refers to the legal right of a landlord to seize a tenant's personal property to satisfy payment of overdue rent. It is a remedy available to landlords when tenants fail to fulfill their rental payment obligations.
Distress involves the seizure of goods as a security for the performance of an obligation, often seen in landlord-tenant relationships and situations where goods are unlawfully on another's land.
A distress sale occurs when assets, such as property, stocks, bonds, mutual funds, or futures positions, are sold urgently, often at a loss, due to immediate financial pressure.
Distress termination is a type of plan termination that occurs when a company is in severe financial distress, such as bankruptcy, and cannot afford to continue its pension plan.
Distressed property refers to real estate that is under foreclosure or impending foreclosure due to insufficient income production. Such properties often require unique strategies for recovery, including potential workouts.
Distributable profits (or distributable reserves) are the profits of a company that are legally available for distribution as dividends to its shareholders. This includes a company's accumulated realized profits after deducting all realized losses.
Distribution refers to various processes including the payment of dividends, the final settlement of a company's assets upon winding up, allocation of a person's property, and the channeling of goods to consumers.
A distribution allowance is a price reduction offered by a manufacturer to a distributor, retail chain, or wholesaler to cover the cost of distributing the merchandise, often used during new product introductions.
A warehouse facility specializing in the collection and shipment of merchandise, ensuring efficient movement and storage of goods within a supply chain.
A distribution centre is a specialized warehouse typically operated by manufacturers to handle the bulk receipt and dispatch of goods to retailers.
The network of firms essential for distributing goods or services from producers to consumers. This setup primarily includes wholesalers and retailers.
Analyzing direct and indirect costs associated with marketing a product or service in a specific area.
A distribution in kind refers to the transfer of property other than money from an organization to an individual, often in a corporate context where non-cash assets, like automobiles, are distributed to shareholders.
Distribution overhead, also known as distribution cost or distribution expense, refers to the costs incurred in delivering a product to the customers. These costs are a key component of cost classification in businesses.
A distribution strategy is management's plan for moving products to intermediaries and ultimately to final customers. It involves decision-making regarding the channels of distribution, the logistics and transportation of goods, and the mechanisms for inventory management.
