Release on Recognizance (R.O.R.) is a method by which an individual is released in lieu of providing bail, upon their promise to appear and answer a criminal charge.
The principle that financial information must influence decisions, offering predictive value or confirmation/correction of prior expectations. This concept is vital in both financial reporting and decision-making, encompassing relevant cost and relevant income.
Relevant accounts are those financial statements that should be used to determine the amount of distributable profit of a company. These accounts are the most recent audited annual accounts of the company, prepared in compliance with the Companies Act.
Relevant costs are expected future costs that vary with different courses of action a manager might take, making them essential for effective decision-making.
Relevant income, also known as relevant revenue, refers to the revenue that changes as a result of a proposed business decision. Revenues that remain unchanged by the decision are considered irrelevant to the decision-making process.
A relevant property trust is defined for inheritance tax purposes and involves taxation upon creation, distribution, and every tenth anniversary. It excludes interest-in-possession trusts, 18--25 trusts, or trusts for bereaved minors.
The relevant range is the range of activity levels within which valid conclusions about cost behaviors and break-even points can be drawn from linear cost functions. Outside this range, the assumptions of linear relationships between costs and revenue may not hold true.
Relevant revenue refers to the income generated from operations that are directly related to the core activities of a business. This figure is crucial for management to assess profitability and make informed financial decisions.
Releveraging refers to the process of increasing the level of debt in the capital structure of a business. This financial strategy is often used to enhance returns on equity by leveraging borrowed funds.
The accounting principle that ensures financial information provided by a company is accurate, neutral, and free from material error, making it a faithful representation of the company's financial status.
Relocating involves moving from one location to another, which can entail moving a business or a residence for various reasons such as expansion, cost reduction, or lifestyle changes.
In a condemnation proceeding, relocation benefits are payments that the government must make to any occupant who is forced to move to a new location because the taking will not allow that occupant to continue to utilize the property. These benefits are not limited to property owners; tenants and other non-owner occupants are equally entitled to such compensation.
A relocation clause is a stipulation in a lease agreement that allows the landlord to move the tenant to another unit within the same building.
A relocation service is a company that contracts with other firms to arrange the relocation of employees from one city to another. The service generally handles the sale of the employee's home, the purchase of a new home, and may also include furniture-moving services.
A remainder is a future interest in an estate that takes effect upon the expiration or termination of a prior estate without reverting back to the original grantor.
Remainder interest refers to the future interest in an estate that becomes possessory when a preceding life estate or similar limited estate terminates. The holder of this interest is called the remainderman.
A remainderman is the beneficiary entitled to the remainder or residue of an estate once expenses, specific legacies, and inheritance taxes have been satisfied. This term often comes into play in the context of trusts and will estates, designating who receives property after the preceding estate benefits or interest.
A Remainderperson is an individual who has an interest in an estate that becomes possessory after the termination of a present possessory interest, often referring to one who holds a remainder interest, whether vested or contingent.
Remediation refers to the process of cleaning up environmentally contaminated sites to mitigate or eliminate pollution and restore environmental quality.
In legal terms, a remedy is the means by which a court enforces a right, imposes a penalty, or makes another court order to impose its will. This includes the relief provided for a violation of a legal right.
Reminder advertising is a type of advertising intended to keep a product or service's availability in the forefront of the minds of existing customers. This form of advertising aims to maintain brand awareness and customer loyalty rather than generating immediate sales.
Remit refers to the process of paying for purchased goods or services by cash, check, or electronic payment. It encompasses various methods of transferring funds to settle debts or obligations.
Understanding remittance, its types and examples, frequently asked questions, related terms, references, and further readings.
The remittance basis is a UK tax rule affecting individuals who are resident but not domiciled in the UK. It allows them to limit their UK tax liability on foreign income and gains only when these are brought into the UK.
In financial and accounting contexts, remittance refers to the act of sending a payment, which may be accompanied by a preprinted coupon or a remittance slip that provides critical details such as account number, date, and purpose of the payment.
A remitting bank processes documents sent by the exporter under a collection arrangement and sends them to the collecting bank in the importer’s country.
Reinstatement of a commodity or other means of exchange as an acceptable currency, often involving the backing of currency by gold or other precious metals.
A removal bond refers to a type of judicial bond which guarantees that an individual or entity will follow a court order for the removal of an item or person.
Remuneration is a sum of money paid for services given, encompassing both salaries and wages.
In UK public companies, a committee of non-executive directors who decide the pay of executive directors.
Renegotiation is the process of legally revising the terms of a contract to better suit the needs of the involved parties due to changing circumstances or the realization that original terms are no longer applicable or fair.
A renewable natural resource refers to a natural resource that can replenish itself over time and is therefore not used up irrevocably. Examples include solar energy, wind energy, and forest products.
A type of life insurance policy that allows the insured to renew the coverage without providing evidence of insurability, regardless of physical health.
Renewal is the continuation in force and effect of a previously existing arrangement for a new period, either on the same or different terms.
An invitation from an insurer to continue an insurance policy that is about to expire by paying the renewal premium. The renewal premium is shown on the notice; it may differ from the previous premium, either because insurance rates have changed or because the insured value has changed.
A renewal option is a provision in a lease agreement that grants the tenant the right, but not the obligation, to continue renting the property under specified terms and conditions, including rent, for an additional period.
A payment made for the use of land or property, usually, but not necessarily, based on a lease agreement. Rent is typically paid on a periodic basis and provides tenants the right to temporary use and occupancy of certain real property.
Laws that govern the maximum rate that may be charged for space. Though popular among tenants, rent control can be economically detrimental to an area because it distorts the forces of supply and demand.
A rent roll is an essential document for property management, providing comprehensive information about tenants, leased properties, rental amounts, and lease expiration dates.
The Rent-a-Room Scheme is a UK tax relief initiative that allows individuals to earn up to £4,250 tax-free from letting furnished accommodation in their main or only residence.
A portion of the term of a lease when no rent is required. This is often offered by a landlord as a rental concession to attract tenants.
The rent-up period refers to the timeframe between the completion of construction and the point at which a newly constructed property becomes fully occupied.
Rentable area refers to the total space a tenant can lease in a commercial property, including both usable space and a proportion of common areas like lobbies, restrooms, and hallways.
The periodic charge per unit for the use of a property. The period may be a month, quarter, or year. The unit may be a dwelling unit, square foot, or other unit of measurement.
A reopener clause is a contractual provision that allows for the renegotiation of specific terms in a collective bargaining agreement before its expiration under certain conditions.
The reorder level represents the number of units of a particular item of stock to which the balance can fall before an order for replenishment is placed, ensuring efficient inventory management within a reorder-level system.
The minimum level of inventory at which a new order must be placed, to prevent stockouts and ensure continuous business operations.
Reorganization refers to the financial and structural overhaul of a company to restore profitability and operational efficiency. It commonly occurs in both legal and managerial contexts and can involve financial restructuring, changes in lines of authority, and adjustments to organization charts.
Reorientation refers to the strategic redirection or adjustment of a property or business to appeal to a new target market. This process involves rebranding, altering the product or service offerings, and sometimes restructuring the business model to better align with the preferences and demands of a different customer base.
Repackaged perpetual debt is a financial instrument originally issued as perpetual debt, which carries a high-interest rate for a set number of years before interest payments cease or diminish significantly. The residual value is negligible, and the issuer often transfers the debt to a friendly third party for redemption at a nominal amount.
Repagination is the process by which a word processor or page layout program repositions page breaks by working forward from the current cursor position, ensuring that content flows seamlessly across pages.
Repairs refer to work performed to return a property to its former condition without extending its useful life, distinguishing them from capital improvements. In the context of income property, repairs are an operating expense for accounting and tax purposes.
The revenue expenditure incurred in maintaining the assets of an organization in their original condition as far as possible. Any expenditure incurred in improving the assets would normally be regarded as capital expenditure and therefore not repairs and maintenance.
Repatriation involves the movement of financial assets or profits of an organization or individual from a foreign country back to their home country, often for investment or distribution purposes.
A repayment claim is a request made by taxpayers to recover overpaid taxes for a fiscal year. Such claims are necessary when basic rate taxes are deducted at source from income without considering personal allowances.
Repetitive manufacturing is a method of production where the same products are continually and repetitiously manufactured. This method is ideal for mass production and supports hard manufacturing with significant fixed cost investments. Products such as appliances and automobiles are typically produced this way.
Replacement cost is the cost of replacing an asset, either in its present physical form or as the cost of obtaining equivalent services. This valuation method helps companies determine the expense of acquiring new or similar assets.
Replacement Cost Accounting is an accounting method allowing for additional depreciation on a part of the difference between the original cost and the current replacement cost of a depreciable asset.
An insurance policy type in property and casualty insurance that covers the cost required to replace damaged property with items of similar kind and quality, without accounting for depreciation.
The period over which a product or fixed asset will need to be replaced owing to obsolescence.
The Replacement Period refers to specific time frames allowed for tax-free gains on the replacement of certain assets under special circumstances, such as inventory interruption and involuntary conversion.
A replacement reserve is an amount set aside from net operating income to pay for the eventual wearing out or replacement of short-lived assets.
Replevin is a legal form of action employed to recover possession of specific personal property that is unlawfully withheld from the plaintiff, plus damages for its detention.
Repo 105 is an accounting maneuver used by Lehman Brothers to temporarily reduce the appearance of its leverage before reporting financial results.
Report and accounts refer to the set of financial statements and accompanying notes that publicly traded companies are required to release annually, summarizing their financial activities and condition over the fiscal year.
A business segment for which information is required to be disclosed in financial reports, as dictated by accounting standards and regulations.
A reporting accountant is responsible for providing financial information in a prospectus or reporting on small company accounts, primarily ensuring consistency with accounting records and legal provisions.
The currency used by an organization to present its financial statements. It serves as the basis for the organization's financial reporting and helps standardize financial data across different entities and regions.
The reporting date is the specific point in time at which an organization closes its books for an accounting period, summarizing financial activities over that period for reporting purposes.
The reporting partner in an audit firm is responsible for forming an audit opinion on the financial statements of a client company. This role includes signing and dating the auditors' report after the board of directors formally approves the financial statements.
A reporting period is the specific span of time covered by a financial statement. This time frame is crucial as it provides stakeholders with the necessary context to evaluate a company’s financial performance and position.
Repossession is the act by which a seller reclaims property from a buyer upon failure to fulfill payment obligations as stipulated in a contract.
Representation involves professional assistance or fiduciary advocacy in a transaction or negotiation, ensuring that the interests of a party are effectively promoted and protected.
Representation and Warranty is a clause in loan agreements where borrowers assure their ability to borrow and provide guarantees, along with other critical confirmations.
A representative (REP), in a business context, typically refers to either a Customer Service Representative (CSR) or a Sales Representative. These roles are essential in bridging the communication between a company and its customers or prospects, ensuring smooth transactions and customer satisfaction.
A company within a group of companies responsible for accounting for both output and input tax for value-added tax (VAT) purposes, and ensuring the quarterly VAT return for the group is submitted. All companies in the group share joint and several liability for any VAT due.
Repressive taxes, often called sin taxes, are designed to discourage certain activities rather than generate revenue. High tariffs and taxes on commodities such as tobacco and alcohol are examples of repressive taxes intended to reduce the consumption of these products by raising their prices.
Reproduction cost refers to the cost required for an exact duplication of a property, whether real or personal, taking into account the original materials, design, and workmanship as of a specific date. It is distinct from replacement cost, which involves replicating the functional utility of a property rather than creating an exact copy.
Repudiation refers to the refusal by one party to fulfill their contractual obligations, signaling an intention to withdraw from the contract.
A Repurchase Agreement, commonly referred to as a Repo or RP, is a common financial instrument involving an agreement between a seller and a buyer, typically involving U.S. government securities, where the seller agrees to repurchase the securities at a specified price and time.
A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities, involving the sale of securities with an agreement to repurchase them at a higher price.
A repurchase agreement, or repo, is a form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.
A repurchase transaction, also known as a 'repo,' is a form of discounting where a corporation raises immediate funds by selling negotiable paper to a bank with the agreement to repurchase the paper upon its maturity.
Reputation refers to the esteem, position, character, distinction, or renown that someone or something enjoys within society, often earned by meeting approved societal standards.
Requests for proposals (RFP) are announcements seeking proposals from interested parties to conduct a study, provide leased space, or perform other specific tasks. RFPs are commonly used in business, governmental, and non-profit sectors as a formal invitation to tender competitive bids.
The required rate of return (RRR) represents the minimum return an organization deems necessary to justify an investment, expressed as a percentage.
A requisition is a formal request or instruction issued within an organization, asking a specific department or individual to perform an action, such as purchasing materials or initiating a production process.
RES refers to the property underlying a trust, which is the subject matter that the trustee holds in fiduciary capacity for the beneficiaries.
Latin for 'the thing speaks for itself,' Res Ipsa Loquitur is a rule of evidence in tort law that allows for the presumption of negligence on the part of the defendant derived directly from the very nature of the accident.
Res Judicata is a legal doctrine which prevents parties from relitigating the same issue that has already been resolved by a competent court through a final judgment.
In a projection of investment performance, the assumed selling price a property could fetch at the end of the projection period.
Resale proceeds refer to the financial gains obtained from selling a previously owned item. This term is particularly significant in contexts such as real estate, vehicles, or other high-value assets, where tracking gains from resale can impact financial planning and tax considerations.
The net amount received by a former owner upon selling an asset after covering transaction costs, settling any remaining debt, and potentially paying income taxes.
The term 'reschedule' refers to the rearrangement of an activity, meeting, or event to a different time or date than originally planned. This can be due to various unforeseen circumstances that make the original schedule impractical or impossible.
Rescinding a contract entails the cancellation or annulment of the agreement, returning both parties to their pre-contractual status. The Truth in Lending Act provides a 'Right of Rescission' which allows signers to nullify the contract within a specified period.
Rescission refers to the cancellation of a contract and the return of the parties to their pre-contractual positions. It may occur due to various reasons including fraud, failure of consideration, or a material breach.
Research can refer to both the scientific method of systematically gathering, recording, and analyzing data, as well as the department within a company dedicated to conducting such investigations.
Research and Development (R&D) refers to the investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures. Key components are innovation and technological advancements.
Research and Development (R&D) encompasses the scientific, technological, and marketing efforts involved in creating and bringing new products or services to market.
Research and development (R&D) costs involve expenditures towards innovative processes or product developments. Distinguished by Financial Reporting Standards, R&D costs can either be expensed immediately or capitalized to create intangible assets.
