The sale by a borrower of some or all of the assets that form the actual or implied security for a loan, often subject to provisions restricting such disposal.
An allowable capital loss refers to the excess of the cost of an asset over the proceeds received on its disposal. Both individuals and companies may set capital losses against capital gains to establish tax liability.
Balancing allowance is the allowance available on disposal of an asset when the proceeds are less than the written-down value for tax purposes. It compensates for the loss in value of the asset beyond its depreciation.
A capital gain represents the profit realized from the sale of an asset where the selling price exceeds the original purchasing price. This gain is often subject to capital gains tax, depending on the jurisdiction and applicable legal provisions.
In the context of capital gains tax, a chargeable person is any individual or entity that is resident, or ordinarily resident, in the UK during the year in which a chargeable gain was made due to the disposal of an asset.
In corporate mergers and acquisitions, the term 'crown jewels' refers to the target company's most desirable and valuable properties. The disposal or sale of these assets can significantly reduce the company's overall value and attractiveness as a candidate for takeover.
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.
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.
Inability to pay one's debts when they fall due, which may lead to bankruptcy for individuals or liquidation for companies.
Investing activities, as required by Financial Reporting Standard (FRS) 1, show the cash flows related to the acquisition or disposal of the organization's long-term assets.
A non-ratio covenant is a form of covenant in a loan agreement that includes conditions relating to the payment of dividends, the granting of guarantees, disposal of assets, change of ownership, and a negative pledge.
Realized profit or loss refers to the profit or loss that has arisen from a completed transaction, typically the sale of goods, services, or other assets. It is recognized legally once the transaction is finalized, regardless of whether cash has been received.
