Understanding common abbreviations used for 'Income Tax' and 'Information Technology' in accounting and technology-related contexts.
Backward Integration is the process whereby a firm purchases or creates production facilities needed to produce its goods, such as an automobile manufacturer that buys a steel mill.
An insurance policy that combines various risk coverages into one package designed for small to medium-sized businesses.
Economic accrual of interest refers to the cost of an indebtedness for a given period, calculated by multiplying the period’s interest rate by the unpaid loan balance, including prior accrued interest.
Forward Integration is a business strategy that involves a company expanding its operations to include control over its direct distribution or supply chain. This often means moving closer to the consumer by acquiring or establishing its retail outlets.
Horizontal integration refers to the strategy where a company acquires or merges with other companies operating at the same level in an industry. It aims to consolidate resources, reduce competition, and increase market share.
An I-Bond is a type of savings bond issued by the U.S. Treasury designed to protect against inflation. The interest earned on I-Bonds includes a fixed rate and an inflation rate that adjusts semi-annually.
The International Auditing and Assurance Standards Board (IAASB) establishes and promotes high-quality international standards for auditing, assurance, and related areas, aiming to enhance the quality and consistency of practice across the globe.
The International Accounting Standards Board (IASB) is the independent, private sector body that develops and approves International Financial Reporting Standards (IFRS). The IASB was formed to achieve transparency, accountability, and efficiency in financial markets around the world through consistent and high-quality accounting standards.
The IASC Foundation, now known as the IFRS Foundation, was established to oversee and develop a globally accepted set of accounting standards known as International Financial Reporting Standards (IFRS).
Ibbotson & Associates is a prominent provider of historical data for various financial investments, renowned for its annual publication 'Stocks, Bonds, Bills & Inflation.' This publication offers critical insights into long-term historical performance across various investment classes.
IBM is a global leader in the manufacturing of computers, servers, and other office equipment. Established in 1911 through a merger of three companies, it has played a crucial role in the evolution of information technology.
The Institute of Chartered Accountants of Scotland (ICAS) is a professional membership organization for Chartered Accountants. It provides qualifications, professional development opportunities, and advocacy for the accounting profession in Scotland and worldwide.
The Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity marketplaces. ICE plays a crucial role in global financial markets, providing trading and clearing services for a wide range of asset classes.
An Icon is a small graphic representation used to identify a computer program, file, or function within a graphical user interface (GUI). It serves as a quick visual shorthand, helping users navigate and interact with their software more efficiently.
Ideal capacity refers to the largest volume of output a facility can achieve if it maintained continuous operation at optimum efficiency without any losses, including those deemed normal or unavoidable.
An ideal standard in standard costing represents a cost, income, or performance benchmark set to be achieved only under the most favorable conditions. It contrasts with expected standards, which are more attainable.
Identifiable assets and liabilities, also known as separable assets and liabilities, are those parts of a business that can be disposed of separately without having to dispose of the entire business. They play a crucial role in financial accounting and business valuation.
Idle capacity refers to the portion of an organization’s budgeted capacity that is not utilized, resulting in unused hours. It is often measured in hours and indicates the gap between actual hours worked and budgeted available hours.
Idle capacity ratio measures the proportion of a company's total production capacity that is not being utilized during a specified period, compared to the budgeted capacity. It helps in understanding inefficiencies in resource utilization.
Explores the concept of idle capacity variance, a key metric in understanding the efficiency and utilization of resources in manufacturing and service settings.
The time, usually measured in labor hours or machine hours, during which a production facility is unable to operate.
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that develops and issues high-quality ethical standards and guidance for professional accountants worldwide.
The if-converted method is a technique used in the USA for determining the dilution of convertible securities that are not common stock equivalents in the calculation of fully diluted earnings per share. The assumption is made that the securities are converted at the beginning of the year or the issue date if later.
The International Federation of Accountants (IFAC) is a global network designed to strengthen the accountancy profession worldwide.
The term IFRIC stands for the International Financial Reporting Interpretations Committee, which is responsible for developing interpretive guidance on accounting issues under the International Financial Reporting Standards (IFRS).
The IFRS Advisory Council is a formal advisory body that provides strategic advice and counsel to the International Accounting Standards Board (IASB) and the Trustees of the IFRS Foundation on the development and implementation of International Financial Reporting Standards (IFRS).
An abbreviation for International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) which provides simplified financial reporting standards for small to medium-sized entities.
The IFRS Foundation is a not-for-profit organization responsible for the development and oversight of the International Financial Reporting Standards (IFRS). These standards provide a common global language for financial reporting, ensuring transparency, accountability, and efficiency in financial markets worldwide.
The abbreviation IIA stands for the Institute of Internal Auditors, a global organization focused on advancing the internal audit profession through education, certification, and advocacy. The IIA is instrumental in defining internal audit standards, providing resources, and fostering the growth and development of internal auditors worldwide.
The Institute of Insurance Brokers (IIB) was a professional body that represented insurance brokers in the United Kingdom. It provided support, education, and resources to its members to promote high standards within the insurance brokerage industry.
An illegal alien, often referred to as an illegal immigrant, is a non-citizen who has not been granted permission by immigration authorities to reside in the country in which they are currently living.
An illegal dividend is a dividend declared by a corporation's board of directors in violation of its charter or state laws, typically including dividends paid out of capital surplus or those that would render the corporation insolvent.
Illegal income refers to earnings derived from activities that are against the law, such as theft or embezzlement. These earnings are considered taxable income and must be reported to tax authorities.
An illegal strike is a work stoppage or strike action that violates the law. Most public-sector strikes are illegal, along with those that violate an existing labor contract, are not properly authorized by union membership, or contravene a court order.
Denoting the position of a company lacking sufficient cash, or assets that can be quickly converted into cash, to meet the demands of creditors.
The Institute of Management Accountants (IMA) is a global association of accounting and finance professionals, focused on empowering professionals in roles of management accounting and financial management.
Image advertising is directed at creating a specific image for an entity, such as a company, product, or brand. This form of advertising focuses on building a mental picture in the consumer's mind, emphasizing characteristics like sophistication, reliability, elegance, or luxury, rather than highlighting specific attributes.
The International Monetary Fund (IMF) is an international financial institution that provides monetary cooperation and financial stability to its member countries, aiming to facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
An immediate holding company has a controlling interest in another company but is itself controlled by a third company, commonly known as the holding company. It plays a key role in corporate structure and governance.
The term 'immediate run' refers to a period of time in which firms in an industry cannot make any adjustments in response to changes in market conditions, often due to the constraints posed by the extremely short duration.
An expense charged against private developers by the county or city as a condition for granting permission to develop a specific project. The purpose of the fee is to defray the cost to the city of expanding and extending public services to the development.
Impaired Capital refers to the situation where a company's total capital is less than the stated or par value of its capital stock, indicating financial difficulties or ongoing losses.
Impairment refers to the reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, often due to obsolescence, damage, or market value decline.
An impairment review is a critical process conducted by entities to assess whether the carrying amount of a fixed asset or goodwill may not be recoverable due to certain events or changes in circumstances.
A situation in which no progress is possible, often due to a disagreement or deadlock. For example, an impasse may occur during negotiations between an employer and a labor union when neither party is willing to compromise.
An imperfect competitor is a consumer or supplier who has the ability to control the price that it pays or is paid. This ability is usually tied to being large enough to constitute a large percentage of the demand or supply of a given good, thereby enjoying monopoly or monopsony characteristics.
An imperfect market is a market structure where individual producers and/or consumers have the power to influence the prices and quantities of goods and services. Unlike in a perfectly competitive market, where no participant can affect the market outcome, imperfect markets are characterized by various market failures such as monopolies, oligopolies, and other forms of market power.
A policy of systematic domination and exploitation of one country by another, often driven by economic, political, or military motives.
An impersonal account is a type of ledger account that does not bear the name of an individual and includes nominal accounts and real accounts.
Implicit cost elements refer to the costs associated with missed opportunities in the utilization of a company's resources. These costs are not directly compensated through cash transactions but reflect the opportunity cost of applied resources.
In various contexts such as law, business, or communication, 'implied' refers to something not explicitly stated but inferred from actions, context, or established facts.
Implied Agency occurs when the words and actions of the parties indicate that there is an agency relationship, even if no formal agreement has been made.
An implied contract refers to an agreement that is established by the actions, behavior, or circumstances of the parties involved, without a written or spoken exchange. Unlike an explicit contract, its terms are inferred from conduct rather than articulated in words.
An implied easement is a type of easement that is established by use and acceptance, rather than through a formal legal document. It is typically demonstrated through continuous and obvious use of the property, which is accepted by the property owner without objection.
An Implied In Fact Contract is an agreement derived from the actions, behavior, or circumstances of the involved parties, rather than from their written or spoken words.
An implied warranty is a legal term referring to the assurance that a product or service meets certain standards of quality and functionality, even if this warranty is not explicitly stated in writing. It contrasts with an express warranty, which is explicitly communicated.
The term 'import' refers to the action of bringing in goods or services produced outside of a specific economy into that economy. It also signifies the process within computer applications of incorporating files created by another program.
Import duty is a type of tax levied by a government on goods brought into the country from abroad. It is aimed at regulating international trade, protecting domestic industries, and generating revenue for the government.
An import quota is an imposed limit on the quantity of a particular good that may be brought into a country or economy over a specified period of time. These quotas may be implemented by governments, foreign governments, or producers themselves.
Imposition refers to an excessive or unwarranted request made by an individual or entity, or the act of levying a tax or fine on a specific item.
Impounding refers to the legal process of seizing and retaining merchandise, funds, or records by an officer of the law. It generally aims to secure the items in question as evidence, prevent their misuse, or ensure compliance with legal procedures.
An impound account is a fund set aside by a lender for the future payment of various required expenses like property taxes and insurance premiums. These accounts are typically used in mortgage agreements.
An imprest account is a simple yet effective means of controlling petty-cash expenditure, ensuring accountability, efficiency, and proper tracking of minor day-to-day business expenses.
The imprest system is a bookkeeping system where a fixed amount of money is reserved for minor expenses and is periodically replenished.
Improved Land refers to a parcel of land that has been partially or fully developed for use. Development activities include landscaping, grading, installation of utilities, road construction, and building construction.
Any permanent, fixed development of land or buildings through expenditure of money or labor that more than merely replaces, repairs, or restores to original condition, and tends to increase the value of the property.
Improvements and Betterments Insurance covers tenant modifications to leased spaces, ensuring protection for personalized adaptations and enhancements.
The Imputation System is a corporation tax framework in which the company distributing dividends pays tax on those dividends, and shareholders who receive the dividends are considered to have incurred tax on those dividends as well. The UK operated an imputation system until 1999.
A cost not actually incurred by an organization but introduced into management accounting records to ensure comparability of costs among different operations.
Imputed income refers to the economic benefit a taxpayer obtains through the performance of their own services or through the use of their own property. Generally, imputed income is not subject to income taxes.
Imputed interest refers to interest that is considered by tax authorities as having been paid or received even though no actual interest payment was made. It commonly applies in situations where the stated interest rate on a loan or financial instrument is considered insufficient or below market rates.
Imputed value, or imputed income, refers to a logical or implicit value that is not recorded in any account. This involves assigning a value to goods, services, or investments that are not explicitly quantified.
The term 'in kind' refers to actions, goods, or services provided in a form other than money but with equivalent value.
A legal doctrine meaning 'equally at fault', where neither party in an illegal contract or transaction is able to obtain legal relief if both parties are equally culpable. Exceptions exist if the parties are not equally at fault.
The term 'In Perpetuity' refers to a state of existence that continues indefinitely without end. In various legal and business contexts, it implies a perpetual time frame or duration.
In Personam (against the person) refers to legal actions directed towards an individual, based on personal liability and requiring the court to have jurisdiction over the defendant.
In rem is a legal term referring to actions or proceedings directed towards property, or 'the thing', rather than towards a specific person. The objective of an in rem proceeding is to resolve matters involving property rights without addressing the personal liability of individuals.
This term is used in options trading to describe an option that would result in a gain if exercised at the current market price. It's the opposite of 'out of the money' where the option would result in a loss.
A term used to describe a lack of objectivity, where individuals have a tendency to analyze events based on their own personal experiences, whether positive or negative.
The term 'in transit' refers to goods or cash that have been sent from one part of an entity to another and are currently in the process of being transported. This concept is integral to accounting as funds or goods in transit need to be carefully monitored and recorded to ensure accurate financial reporting.
Activities or services performed within an organization, without reliance on external contractors, often linked to ongoing debates about cost-efficiency versus outsourcing.
In-kind distribution refers to the distribution of assets or property directly to beneficiaries, rather than converting those assets to cash and distributing the proceeds.
In-kind income refers to benefits or goods and services one receives without monetary exchange, such as public services, food stamps, and housing assistance.
Inactive stock or inactive bond refers to a security that is traded infrequently, either on an exchange or over the counter. Due to its low trading volume, the security is considered illiquid, making it less attractive to small investors.
Done unintentionally, often accidentally, and typically without attributing blame to anyone. Inadvertent actions occur without the intention of causing a particular outcome.
Incapacity refers to the lack of legal, physical, or intellectual power or ability to perform a task or make decisions. It is relevant in various legal contexts, such as contract law, where a person must have the capacity to enter into a binding agreement.
Incendiarism refers to the act of deliberately setting fire to property, an act commonly known as arson. Arson is typically a covered peril under property insurance contracts, provided the property owner is not responsible for the arson.
An incentive fee refers to a payment or fee given as a motivation to encourage participation, often in situations such as becoming part of a test-marketing audience group. This term is extensively used in various fields including finance, marketing, and business management.
Incentive pay is a wage system that rewards a worker for productivity above an established standard, typically in the form of a bonus. This system is a variation of the piece-rate system developed by Frederick W. Taylor.
An Incentive Stock Option (ISO) is an equity-type compensation plan where qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold.
A wage program where wages rise with productivity increases above an established standard, incentivizing individual or group performance.
Inchoate refers to something that is not yet completed or fully developed. In the context of law, particularly criminal law, inchoate offenses are crimes where some steps have been taken towards commission, but the crime has not been successfully completed.
Incidence of tax refers to the analysis of the effect of a particular tax on the distribution of economic welfare. In simple terms, it identifies who ultimately bears the 'burden' of paying the tax.
Incident of ownership refers to an element of ownership or degree of control over property, which can impact the tax treatment of transferred property, especially in the context of estate taxes.
Incidental damages refer to losses that are reasonably related to the wrongful conduct that gives rise to a claim for actual damages. These damages are intended to cover additional costs incurred by a party due to another party’s breach or misconduct.
Income represents an economic benefit, encompassing money or value received over a period. It is a crucial concept in various domains like accounting, taxation, and economics.
In accounting, income accounts refer to revenue and expense accounts that reflect transactions affecting profit or loss during the accounting period. Unlike balance sheet accounts, income accounts provide insight into the organization's operational performance.
An account primarily used by non-profit organizations to record and summarize their income and expenditures, leading to a calculation of surplus or deficit without applying the accruals concept.
The Income Approach is a real estate appraisal method that estimates the value of a property by its anticipated future income. This approach is particularly useful for income-generating properties such as rental buildings, commercial properties, and investment properties.
