Tax Glossary

A preference share whose dividend is increased if the company meets certain performance criteria.

A company which has one or more subsidiaries.

(Nominal value) The face value of a company’s shares. The company cannot issue shares for less than this value.

The change in a company’s cash during an accounting period due solely to its enterprise (i.e. disregarding interest/tax/dividend payments, equity/debt issues, etc.)

Funding raised by a company which does not have to be recognised on its balance sheet.

The value of an asset as recorded in the company’s books after allowing for accumulated depreciation or accumulated amortisation.

(Net worth) The total assets of a company less its liabilities.

The value of an asset to an unconnected third party.

Market value of shares divided by book value of those shares.

The total market value of all the ordinary shares of a listed company.

The owner of an asset which is being used by someone else under the terms of a lease.

The user of an asset which is owned by someone else but is being used by the lessee under the terms of a lease.

An agreement whereby the owner of an asset (the lessor) allows someone else (the lessee) use of that asset.

Method of accounting for stock whereby, if a company has identical items of stock which cost different amounts to buy of produce, the newest stock is assumed to be used first.

End-of-period adjustment to a company’s accounts (e.g the post accruals or depreciation)