Accounting Definitions
Accounting definitions are defined by different authors in different ways. Accounting definitions are easy to understand and in easy language. Accounting definitions provides proper guideline & process in the preparation of different accounts of any thing.
Write down is the concept that is completely opposite to the write up. In write down the book value of the asset is reduced because the value of the asset is already overvalued as compared to the actual and the original market value of
Written down value can be defined as a value of an asset that has been accounted for the amortization and depreciation. The written down value of the asset is also called as the net value or the book value of the asset. In order
Write up can be defined as an increase that is made to the book value of the asset due to the fact that the asset is carrying less value than its value in the fair market. A write up is usually occur in a
Designated beneficiary can be defined as a person that will determine that how long a retirement plan for an employee can be act or survive as a tax free or tax deferred vehicle under the specific laws that govern different types of retirement plans.
Defined benefit plan is a kind of retirement plan that is funded or backed by the employer and in such a retirement plan the benefits are defined on a number of different factors. These factors may include the sales target achieved by the employee,
Asset retirement obligation is an accounting rule and it is the rule no 143 that is designed and implemented by Financial Accounting Standard Board in year 2001. This rule implies to all public limited companies to recognize the fair and accurate value of all
Annuity Ladder can be defined as an investment strategy for the retirees or those who are absolutely near their retirement. Annuity Ladder entails the purchase of some immediate annuities over a time period that spans for a year so that it can provide a
As the name indicates the clone fund is a replica of a larger mutual fund. The clone fund tries to replicate the benefits and the reimbursements of a larger mutual fund. A clone fund is usually setup by the mutual fund issuing company if
Beneficial interest can be defined as the right of an individual or a business entity to receive benefits on the assets that are held by a third party or any other entity. In most of the cases the beneficial interest is included or referred
Factor income can be defined as the income that is produced from the factors of the production. For example the factors of the production include land, labor and the amount of capital that is spent by a business entity on production. Factor income that
Face value or the par value is the nominal value or the dollar value of the security that is defined by the issuer of the security. In terms of the stock the face value is the original value of the stocks that is displayed
Underlying profit is a termed that can be defined as the description of the reflection of the actual profit of a company. The underlying profit is not the actual accounting profit of the company that is recorded on the financial statements and the other
Underlying assets are the assets that are used in the derivative trading where the trading done with a number of options. A derivative can be defined as a financial instrument that has a price which is based on a different asset or the price
Yearly price of protection method is a method of analytically analysis. This analytic analysis method is mostly used in the insurance industry. This method called yearly price of protection method is used to find out the cost of protection of the insurance policy along
Yearend bonus can be defined as a reward paid to the employees of a business entity or a corporation at the end of the year. In most of the corporation the yearend bonus is tied to the performance metrics of the employees and these
The underinvestment problem is the problem of an agency where the investor or any other company refuses to invest in the low risk assets, in order to maximize their wealth at the cost of the debt holders. Low risk asset are more stable and
Under pricing can be defined as the price of an initial public offering that is offered below its market price. If the price offered for the stock is below the first trading price of the stock in the market the stock is called as
The concept of the underlying debt is related to the municipal bonds. The underlying debt is an assurance or an understanding that is implicitly associated with the municipal bonds. According to this assurance or understanding means that the debt of the small government entities