Accounting reference date
The date to which accounts are made up for a company. When a company is incorporated, it will normally have an accounting reference date which is the last day of the month in which the anniversary of its incorporation falls. Directors can change the accounting reference date by filing an appropriate form with the registrar of Companies. |
Similar financial terms
Accounting liquidityThe ease and quickness with which assets can be converted into cash
Accounting
The process of recording a firm's financial transactions in appropriate bookkeeping records, and the summary of this information in the form of accounting (annual, interim)reports.
Accounting exposure
The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates.
Accounting earnings
Earnings of a firm as reported on its income statement.
Accounting insolvency
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently used by U.S. firms. It mandates the use of the current rate method.
Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in use by U.S. accounting firms.
Regulatory accounting procedures
Accounting principals required by the FHLB that allow S&Ls to elect annually to defer gains and losses on the sale of assets and amortize these deferrals over the average life of the asset sold.
Purchase accounting
Method of accounting for a merger in which the acquirer is treated as having purchased the assets and assumed liabilities of the acquiree, which are all written up or down to their respective fair market values, the difference between the purchase price and the net assets acquired being attributed to goodwill.
Creative accounting
The reporting of profit and asset figures in a way that is flattering to the company. A company's senior managers can 'window dress' the profits for any trading period to impress shareholders - however, interpretation of accounting data in this way is actively discouraged by the professional accounting bodies.
Reference rate
A benchmark 'interest rate (such as LIBOR), used to specify conditions of an interest rate swap or an interest rate agreement.
Preference stock
A security that ranks junior to preferred stock but senior to common stock in the right to receive payments from the firm; essentially junior preferred stock.
Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.
Liquidation Preference
Sometimes, usually by virtue of an agreement, certain shareholders will receive preferential treatment if a company is liquidated. Investors may insist on this so that if a company fails, they are paid out first before any other shareholders receive any payouts.
Expiry date
Maturity or expiration date of an option.
Announcement Date
The date on which a company makes it public that they will do a split.
Expiration date
The date on which an option expires, after which the option cannot be exercised.
Value date
In the market for eurodollar deposits and foreign exchange, value date refers to the delivery date of funds traded. Normally it is on spot transactions two days after a transaction is agreed upon and the future date in the case of a forward foreign exchange trade.
Trade date
In an interest rate swap, the date that the counterparties commit to the swap. Also, the date on which a trade occurs. Trades generally settle (are paid for) 1-5 business days after a trade date. With stocks, settlement is generally 3 business days after the trade.
Settlement date
The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently 3 business days after the trade. For mutual funds, settlement usually occurs in the U.S.the day following the trade. In some regional markets, foreign shares may require months to settle.
Record date
(a) Date by which a shareholder must officially own shares in order to be entitled to a dividend. For example, a firm might declare a dividend on Nov 1, payable Dec 1 to holders of record Nov 15. Once a trade is executed an investor becomes the "owner of record" on settlement, which currently takes 5 business days for securities, and one business day for mutual funds. Stocks trade ex-dividend the fourth day before the record date, since the seller will still be the owner of record and is thu ...
Projected maturity date
With CMOs, final payment at the end of the estimated cash flow window.
Payment date
The date on which each shareholder of record will be sent a check for the declared dividend.
Notification date
The day the option is either exercised or expires.
Call date
A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price.
