Actuarial Gains and Losses
Is the effects of difference between the previous actuarial assumptions and what has actually occurred and the effects of changes in actuarial assumptions.
Amortisation
The systematic allocation of the depreciable amount of an intangible asset over its useful life.
Available for Sale
Non derivative financial asset that are designated as available for sale or are not classified as loans and receivable, held to maturity investment or financial assets at fair value through profit and loss.
Biological Asset
A living animal or plant
Borrowings
All interest bearing liabilities.
Capital Employed
Total equity, minority interest and interest bearing borrowings.
Capital Reserves
Reserves identified for specific purposes and considered not of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity available for distribution.
Cash Equivalents
Liquid investments with original maturity periods of three months or less.
Contingent Liability
A possible obligation that arises from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.
Current Ratio
Current assets divided by current liabilities. A measure of liquidity.
Current Service Cost
Is the increase in the present value of the defined benefit obligation resulting from employee service in the current period.
Deferred Taxation
The tax effect of timing differences deferred to/from other periods, which would only qualify for inclusion on a tax return at a future date.
Dividend Cover
Profit attributable to ordinary shareholders divided by dividend. Measures the number of times dividend is covered by distributable profit.
Dividend Payout
Dividend per share as a percentage of the earnings per share.
Dividend Yield
Dividend per share as a percentage of the market price. A measure of return on investment.
EBIT
Abbreviation for Earnings Before Interest and Tax.
Effective Tax Rate
Income tax expenses divided by profit from ordinary activities before tax.
Equity
Shareholders’ funds.
Equity Accounted Investees
An entity including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture.
Fair Value
Fair value is the amount for which an asset could be exchanged between a knowledgeable or liability settled between knowledgeable willing parties in an arm’s length transaction.
Fair Value Through Profit and Loss
A financial asset/liability acquired/incurred principally for the purpose of selling or repurchasing it in the near term, part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short- term profit taking, or a derivative (except for a derivative that is a financial guarantee contract).
Financial Asset
Any asset that is cash, an equity instrument of another entity or a contractual right to receive cash or another financial asset from another entity.
Financial Instrument
Any contract that gives rise to a financial asset of one entity and a financial liability or equity to another entity.
Financial Liability
Any liability that is a contractual obligation to deliver cash or another financial asset to another entity.
Gain on Bargain Purchase
Business combination is which the amount of the identifiable assets acquired and liabilities assumed exceeds the aggregate consideration transferred.
Gearing
Proportion of total interest bearing borrowings to capital employed.
Interest Cover
Profit before tax plus net finance cost divided by net finance cost. Measure of an entity’s debt service ability.
Key Management Personnel (KMP)
KMP are those persons having authority and responsibility for planning directing and controlling the activities of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity.
Market Capitalisation
Number of shares in issue multiplied by the market value of a share at the reported date.
Net Assets Per Share
Shareholders’ funds divided by the weighted average number of ordinary shares in issue. A basis of share valuation.
Non-controlling Interest
The interest of individual shareholders, in a company more than 50% of which is owned by a holding Company.
Other comprehensive income
Items of income and expenses that are not recognised in profit or loss as required or permitted by other SLFRS’s.
Price Earnings Ratio
Market price of a share divided by earnings per share as reported at that date.
Related Parties
Parties who could control or significantly influence the financial and operating policies of the business.
Retirement Benefits Present Value of a Defined Benefit Obligation
Is the The quantum of wealth generated by the activities of the Group measured as the difference between turnover and the cost of materials and services bought in.present value of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.
Return on Average Capital employed
Profit before tax plus net finance cost divided by average capital employed.
Return on Average Shareholders’ Funds
Attributable profits to the shareholders divided by average shareholders’ funds.
Revenue Reserves
Reserves considered as being available for distributions and investments.
Segments
Constituent business units grouped in terms of similarity of operations and location.
SoRP
Statement of Recommended Practice.
Value Addition
The quantum of wealth generated by the activities of the Group measured as the difference between turnover and the cost of materials and services bought in.
Working Capital
Capital required to finance day-to-day operations computed as the excess of current assets over current liabilities.