(Profit before interest and tax, Trading profit, Operating profit) The profit generated by the enterprise of a company, i.e profit before taking account of interest (either payable or receivable) and corporation tax.
(Profit for the year) Profit attributable to the ordinary shareholders (after taking account of corporation tax, minority interests, extraordinary items, preference dividends but before taking account of any ordinary dividends payable).
Debt divided by the sum of debt and equity.
(Gearing) Debt divided by equity.
(1) Money, goods or services owed. (2) Any funding which has a known rate of interest and term. Typically, a form of loan or overdraft. Some equity instruments are also treated, for accounting purposes, as debt.
In double-entry book-keeping, there are always at least two entries; one of these is always a credit, the other is always a debit.
A long-term loan issued by a company, usually with security over some or all of the company’s assets.
Earnings per share before allowing for any additional shares that may potentially be issued.
Statement of the fundamental principle of accounting, whereby the assets of a company must equal the claims over those assets (i.e the liabilities and shareholders’ equity).
The date at which a balance sheet is drawn up.
Money owed by a customer which will never be paid.
(Statement of financial position) Statement of a company’s assets and the claims over those assets at any given moment (i.e at the balance sheet date).
(Issued share capital) The number and/or value of the shares that have been allotted (issued) to shareholders.
The total depreciation or amortisation of an asset since the asset was purchased.
Under the accruals concept, revenues are recognised when goods or services are delivered, not when payment for those goods or services is received. Similarly, all expenses incurred to generate the revenues of a given accounting period are recognised, irrespective of whether payment has been made or not.
