docDownload
AcademiaClubs & NGOsCorporateHuman ResourcesInformation TechnologyLegal
MarketingPersonalProfessional & OtherProject ManagementRisk ManagementTendering
* Precedents Online -Corporations Act
Acquisition
Audit
Books of account
Code of ethics
Company formation
Company meetings
Company records
Corporate governance
Delegation
Document styles
Documentation
Financial reports to ASIC
Legal contract (corporate level)
Letters, address & protocol
Mission
Office routines
Org Chart
Planning
Policy & procedures
Privacy Declaration & Website Terms
Quality statements
Raising funds
Remuneration of directors
Reporting
Resolution of Single Member Company
Shareholders
Winding Up
dictionary
links to government
Member Login
Username
Password
 
Become a member
lost your password?
Search
Search
Search
About docDownload




SME Australia - Glossary of Terms & Acronyms

A dictionary of terms and their definitions and the common interpretation of acronyms used by those running an entity (small and medium enterprise SME under $5m) in the Australian business environment. NOTE: to view downloads Click here.

For those interested in quality see Quality dictionary.

Legal Dictionary
some basic
legal terms
www.docDownload.com.au
Other Acronyms
in common parlance
in Australia
www.docDownload.com.au
S.R. Sheth & Co
Chartered
accountants
www.srsco.com.au
Business Advisor Network
Helping you find
the right advice
www.businessadvisor.net.au
Biz Sale Kits
Business Valuation
and Sales Experts
www.bizsalekits.com


To join the Network & to start a discussion on LinkedIn or simply to add a word to the dictionary Click here docDownload Pty Ltd on LinkedIn
=====

Corporate Glossary of Terms & Acronyms 1 period method = a calendar year (ASIC & ATO); see EOY

4 period method = a year broken into four 13-week accounting periods (GST); see EOQ

12 period method = a year broken into calendar months (financial); see EOM

13 period method = a year broken into thirteen standard 4-week accounting periods (scientific & productive); see EOP

14 period method = operational with additional periods for computational routine; period 0 -> separable balances brought forward; periods 1-12 -> separable financial year transactions under the 12 period method; period 13 -> separable EOY adjustments and appropriation

AAG = Australian Accounting Guidance (Release)

AAS = Australian Accounting Standard (issued by AARF)

AASB = Australian Accounting Standards Board

AASB_??? = standard issued by the AASB

AARF = Australian Accounting Research Foundation; sponsored by CPA and ICAA for accounting and audit standards in Australia

abnormal item = extraordinary item; an item of revenue or expense included in the operating result after income tax for the reporting period, considered abnormal by reason of its size and/or effect on the operating result

ABR = Australian Business Register

ABR's dictionary = provides instant electronic access to transactions and data

absorption costing = cost of inventory/production is determined by absorption of each item by both fixed (such as factory costs/machinery costs) and variable costs at normal operating capacity; also known as full costing (IAS 2, AASB 1019)

absorption of overheads = cost of overheads is spread over all units of production at normal operating capacity

academia = terms & acronyms that might be of interest to students or teachers

ACCC's dictionary = Australian Competition & Consumer Commission definition of terms

account = a page in the ledger with a name defining how the information posted to that page during the year will be dealt with in the final accounts or reported in the financial statements

account (vernacular) = invoice

accounting period = see EOM, EOQ, EOY, EOP, 1 period method, 4 period method, 12 period method, 13 period method, 14 period method; See also period; See also standard period

accounting policy = (AASB 1001/AAS 6)

accounting records = obligation = see financial records

accounts payable = a particular current liability; also called a trade creditor; a purchase of a good or service from an external party via invoice recorded in the Purchases Day Book and still owed money at balance date

accounts receivable = a particular current asset; also called a trade debtor; a sale to an external party via invoice recorded in the Sales Day Book and still owing money at balance date

accrual = an entry which records an income or an expense incurred by EOY but the receipt or payment/disbursement has not yet occurred, entered in the books of account via the General Journal to ensure a charge is entered in the year in which it was incurred; it is reversed on the first day of the new period as the transaction will be expected to enter the books of account through the normal trading journals

accrual basis = assets, liabilities, equity, revenues and expenses are recognised in the accounting period to which they relate, regardless of when cash is received or paid (AAS 6)

accrued expenses = wages, purchases incurred by EOY but payment/disbursement has not yet occurred

accrued income = income earned by EOY but receipt has not yet occurred

accrued special fees and charges =

accrued unearned income =

accumulated depreciation = the aggregate, at EOY, of the depreciation expenses charged against this asset to date (AAS 4)

accumulated results = a component of equity; the accumulation of classes of operating results over the life the entity in accordance with accounting standards

acquire = in relation to a financial product asset, as per CA2001 s.761(B)

acquire = in relation to a fixed asset, the agreed process of purchase of assets over $10,000 (fixed assets) usually requiring board involvement and controlled by the fixed asset register

acquisition = in relation to a financial product asset, as per CA2001 s.761(B)

acquisition = in relation to a fixed asset, the agreed process of purchase of assets over $10,000 (fixed assets) usually requiring board involvement and controlled by the fixed asset register

actuate = put into action; to move or incite to action; investigative activities, defect resolution, adherence to methodology; break fix activity and reporting

actuals reporting = reporting actuals for the period, EOY, YTD, PTD, etc., against budget and explaining variances; useful in normal production reports (where abnormal variances indicate need for managerial intervention); useful in project costing (being the first indicator of project progress and outcome); useful in NGO annual reporting (being first indicator for continued government funding)

actuary = mathematician/statistician employed by insurance and government to collect and interpret numerical data, provide information on risk management, calculate and evaluate premiums, insurance propositions and proposals, uncertain future events, employee benefits, medical insurance and pension plans, and social welfare programs such as social security and Medicare

adjustments = at the end of the period the figures in the Trial Balance are reviewed and adjustments to those figures may be necessary; adjustments may be temporal (such as depreciation or recognition of prepayments and accruals); evaluative (such as write off of bad debts); corrections (such as posting errors and change of posting/value due to the application of accounting standards); take up or finalisation of the period (such as immediate tax requirements and future tax liability); and assignment (such as profit and loss appropriation, dividends and changes to reserves); these adjustments are made under strict accounting standards and are properly documented with notes and explanations that form part of financial statements and, although they may not be published, are to be retained as forming an integral part the books of account

ADI = authorised deposit institution (ATO NAT 0669?6.2009)

AFR = Annual Financial Report

AGAAP = Australian Generally Accepted Accounting Principles

aged = reported in a temporal manner, that is, showing the age of the transaction being reported

aged debtors = a report breaking down the total debtors amount shown in the monthly accounts or in the final accounts in a temporal manner, that is, showing how long the debtor has been in the books of account, a useful method for determining the veracity of the charge for bad and doubtful debts

aged creditors = a report breaking down the total creditors amount shown in the monthly accounts or in the final accounts in a temporal manner, that is, showing how long the creditor has been in the books of account, a useful method for determining the normalcy of trade and first indicator of inability to satisfy debts as and when they fall due

Agenda for Annual General Meeting = an agenda for the general meeting of the company held every year and required to be held by CA2001 s.250(N)

Agenda for Special General Meeting = an agenda for the general meeting of the company held every year and required to be held by CA2001 s.250(N)

aggregated turnover = the company?s annual turnover plus the annual turnovers of any entities that are connected to or affiliated with it. (ATO NAT 0669?6.2009)

AGM = Annual General Meeting

allotment = issue of shares under CA2001 s.124(1)(a). Note: a company limited by guarantee does not have the power to issue shares.

amortisation = a cost over time; the process of allocating the value of a non-current (intangible) asset with a limited useful life over the accounting periods of that expected useful life; recognised as an expense in the Statement of Financial Performance; see straight-line, declining balance

Annual Financial Report (AFR) = required under CA2001 s.295 consisting of: financial statements, notes to and forming part of, and directors' declaration

Annual General Meeting = a general meeting of the company held every year and required to be held by CA2001 s.250(N)

Annual Return =

annuity = cash flow made up of equal payments over a given number of periods

annuity in perpetuity = cash flow made up of equal payments over an infinite number of periods

ANZIC = See ANZSIC

ANZSIC = Australian (and) New Zealand Standard Industrial Classification (Codes)

apportioning = products in production are required to accept an appropriate level of the overheads of production

appropriation = recognition of the decision of the Board on what will happen to the profits of the period (such as dividend and changes to reserves)

APESB = Accounting Professional (and) Ethics (and) Standards Board

APRA = Australian Prudential Regulation Authority

ASIC = Australian Securities (and) Investments Commission

ASIC's dictionary = Australian Securities (and) Investments Commission definition of terms

asset = an item, tangible or intangible, of present and continuing worth/value which is controlled by the entity as a result of past events at balance date; such as cash at bank, cash in hand, accounts receivable, investments, land & buildings, plant & equipment

Asset Register =

Asset Revaluation Reserve = a recording of additional equity in the ledger (via the General Journal) that has arisen because of a revaluation of a non-current asset to fair value, as required by Australian Accounting Standards, rather than recording this as income in the profit & loss account, thereby requiring explicit Board decisions over time limiting its use and distribution because the value is unrealised (AASB 1041)

Associated entity = an entity in which we hold an interest in the net assets and over which we are able to exercise significant influence, but do not have control; reported based on % of ownership not control

ATO = Australian Tax Office

ATO's dictionary = Australian Tax Office definition of terms

audit committee = a sub-committee of the board of directors; plays an important in corporate governance

auditor =

auditor independence = a person must not accept appointment as auditor unless completely independent of the company and its ownership and control CA2001 s.324

Auditor's Report = (when there is only one auditor) a report prepared to accompany AFR under s.301 CA2001 in accordance with requirements laid out in s. 307

Auditors' Report = (when there is more than one auditor); see auditor's report

Average Cost method = inventory costing method for calculating COGS (AASB 1019) (AASB 102)

bad debts = balances in the accounts receivable that will not be received in subsequent period(s); this can be dealt with in two ways: by writing off the balance to Bad & Doubtful Debts Written Off (for fraudulent transactions, insolvent debtors or amounts which we are certain are not recoverable) or retaining the balance and making a corresponding entry in the Provision for Bad and Doubtful Debts (for debts that appear to still recoverable but are obviously doubtful)

bad and doubtful debts written off = an entry in the General Ledger at balance date following analysis of accounts receivable for debts that will not be received in subsequent period(s); the entry transfers the amount from the debtors ledger to the Profit & Loss Account as an expense or a charge

balance date = the day of reckoning; the end of the accounting period; this could be EOM, EOQ, EOY, depending on the purpose of accounts preparation

Balance Sheet = a more detailed Statement of Financial Position for internal use by directors of and officers

bank rec = see bank reconciliation statement

Bank Reconciliation Statement = one of the financial records; a consolidation of balances in all cash at bank accounts in the ledger and reconciled at EOY to explain the balance shown in the financial statements and proven against external bank statements

BAS = Business Activity Statement

BAS Calculator = Business Activity Statement calculator

BEP = break even point

bill of lading = document specifying goods being shipped

board = a meeting of the company's directors

bonus = allotment and issue of shares under CA2001 s.124(1)(a) and CA2001 s.254A for which no consideration is payable. Note: a company limited by guarantee does not have the power to issue shares.

books of account = registers, records, financial reports, financial records however compiled, recorded or stored, and documents

borrowing costs = interest (and other costs) incurred by an entity in connection with the borrowing of funds (AAS 34)

break even = fixed costs + accumulated variable costs to date = accumulated revenues received to date

break even chart = a linear graph that illustrates if the company is making a profit

break even point (BEP) = temporal calculation that may influence decision to invest; the date at which investment is fully recovered from revenue received to date

budget = a general commitment to spend. Usually a budget refers to the whole business 'next year'. A budget therefore is agreed prior to the commencement of trading in the year being focussed on. Details of the budget usually are included in last year's annual report but must be agreed to earlier, before the start of the year. The budget comes from the board and must be agreed to by managers who have accepted responsibility for the actions required to achieve the objectives for the year that the budget represents. Usually costs included in the budget represent a limit to planned expenditure in the year. Usually the manager is required to report budget vs actual to the board, monthly. Any significant excess of actual expenditure over budgeted expenditure needs to be approved by the board and future budgets modified.

budget reporting = reporting actuals for the period, EOY, YTD, PTD, etc., against budget and explaining variances; useful in normal production reports (where abnormal variances indicate need for managerial intervention); useful in project costing (being the first indicator of project progress and outcome); useful in NGO annual reporting (being first indicator for continued government funding)

business analysis specialists = Senior Business Analyst, Report Writer, Analysis Service Technician, Project Manager, Technical Writer

Business Activity Statement = a report to the ATO by those businesses registered for GST regarding their business tax entitlements and obligations, including GST, PAYG instalments, PAYG withholding and FBT instalments

business analyst = a logician aware of business processes, an individual (usually with a BSc or MSc) who analyses the operations of a department or functional unit with the purpose of developing a general systems solution to the problem that may or may not require automation. If it does, may need the assistance of a systems analyst.

business case = usually a sub-project plan but could be a sub-campaign. It is used to give project or campaign managers/employees a chance to introduce new ideas to influence general budget or project plans and take up money already allocated in those plans.

business plan = a particular form of strategic plan that seeks to raise investment funds from investors for the formation of a new business. It establishes a general mission that describes the reason for formation and provides general limitations to what the business means, what activities it will be include and what it will exclude, throughout its life.

business type = See entity; in Australia legal entities include:
Company Ltd (Listed);
Company Ltd (Unlisted);
Company Large Pty;
Company Small Pty;
Company Limited By Guarantee;
Taxable Club;
Taxable Society;
Taxable Association;
Taxable Organisation (other);
Cooperative Ltd;
Strata Title Corporate Body;
Individual Contractor;
Individual Person;
Non-Profit Organisation;
Partnership;
Limited Partnership;
Deceased Estate;
Fixed Trust;
Hybrid Trust;
Discretionary Trust - Trading;
Discretionary Trust - Service;
Discretionary Trust -Investment;
Cash Management Unit Trust;
Public Unit Trust (Listed);
Public Unit Trust (Unlisted);
Fixed Unit Trust (other);

buy back (options) = reduction in share capital through the buy back from shareholders at buy-back price of outstanding options to ordinary shares owned by shareholders and the cancellation of those options and associated nominal shares

buy back (ORDs only) = reduction in share capital through the buy back at buy-back price of ordinary shares from shareholders and the cancellation of those shares; see General reduction - Equal offer to all and Selective reduction

buy back price = price on offer for shares buy back (usually accompanied by an explanation of the calculation of the price)

business day = a normal business day in the place of trading; influenced by normal local agreed rules such as Daylight Saving; in Australian not a Saturday, Sunday, a local public holiday or a local bank holiday

business plan = an internal planning document; usually used by the Board to make decisions and approve investment for start-up following formation or for investment in new business

CA2001 = Corporations Act, 2001

campaign = a particular form of project plan, that is to say a particular strategic sub-plan undertaken to achieve particular objectives resulting from a modified mission, related to the sales process. A campaign usually impacts on budgets over a number of years, controlled by marketing/sales but impacting on production.

capital = net assets (Assets - Liabilities); equity

capitalism = a society based on the general mission of increasing capital (equity) (and profit) over time

capitalist = (actions) performed for the purpose of increasing capital (equity) (i.e. for profit)

capitalists = owners of capital (equity)

capitalists = (political) promoters and supporters of capitalism as an economic system

Cash = cash on hand and cash equivalents (AAS 28)

cash accounting = an accounting method which records results based on cash receipts, payments and balances and when these transactions occurred (see accrual basis)

Cash At Bank = the consolidation of all cash at bank accounts in the ledger as shown in the financial statements and reconciled at EOM/EOY by bank reconciliation statement

Cash Book = a journal recording all transactions affecting Cash At Bank; includes Cash Receipts Journal and Cash Payments Journal; the two journals are brought together and reconciled at EOM/EOY by bank reconciliation statement

cash equivalents = (AAS 28)

cash flow = the movement of cash on hand and cash equivalents in and out of the company

Cash Flow Forecast = an internal managerial detailed financial statement showing projected cash inflows and projected cash outflows for a given accounting period; useful in determining ability to satisfy debts as and when they fall due

Cash Flow Statement = a financial statement showing actual cash inflows and cash outflows for a given accounting period

Cash In Hand = Petty Cash Float + Cash Till Float + Temporary Banking in Hand

cash on hand = See Cash In Hand (AAS 28)

Cash Till Float = an amount of money withdrawn from the Bank and held in the Till for the purpose of Retail Cash Transactions; Sales Receipts + Cash Till Float = Balance of Cash In Hand

CEO = Chief Executive Officer

CFC = controlled foreign company (ATO NAT 0669?6.2009)

CGT = Capital Gains Tax

Chart of Accounts = a table of contents for the Ledger; a simple list of all the accounts in the ledger containing the Account Number and Name of the account and some link to the account; see Company Trading in Goods (Pty) Ltd, NGO Charity Ltd, NGO Council Ltd, small business

Cheque Requisition Voucher = (Payment voucher) a key document for keeping control of cheque payments; a means of standardising the supporting documents for each cheque drawn with supporting documents attached; the signatory signs the cheque and the voucher

Class = a group of revenues, expenses, assets or liabilities having a similar nature or function in the operations of the entity

CLERP = Corporate Law Economic Reform Program

code of ethics =

COGS = Cost of Goods Sold

common costs = in costing when decisions are to be made, those costs that are common to all alternatives that can therefore be eliminated from the decision making process concentrating only on differential costs

company formation =

Company Tax Reconciliation Statement =

company limited by guarantee = company formation used (usually) by NFP entities; a company formed on the principle of having the liability of its members limited to the respective amounts that the members undertake to contribute to the property of the company if it is wound up (CA2001 s.9)

company limited by shares = a company formed on the principle of having the liability of its members limited to the amount unpaid on issued shares (if any) when it is wound up (CA2001 s.6)

compound interest = if interest on a loan is paid to the lender as it is earned, than any calculation of interest on the loan will be simple; if interest is accumulated on the loan then interest calculation will be compound interest as interest in the next period will include interest on the interest factor accumulated as part of the loan

Computer Back-up Discs =

Consolidated Accounts = (AASB 1024)

Consolidated Financial Statements/Reports = Consolidated Operating Statement/Financial Performance; Consolidated Financial Position; Consolidated Cash Flows; Schedule of Contingencies; Schedule of Commitments; Notes (SAC 1)

Consolidated Financial Reports = (AAS 24)

Consolidated Trial Balance =

Contingencies = conditions, situations or circumstances that exist at EOY creating uncertainty as to possible gain or loss and will only be confirmed upon the occurrence or non-occurrence of future event(s)

contra account = splitting the ledger into two contra accounts so that the debit transactions accrue in one account and the credit transactions accrue in the other, allowing quick reference to two important balances; the final balance is calculated by offset in the reporting process as required and at balance date

contribution = the direct contribution made to current liquidity by a product

contribution margin = (Sales Revenue - Variable Costs)

control = legal control and/or de facto control; the capacity to dominate decision-making, directly or indirectly, in relation to the entity's financial and operating policies (AASB 1024); the capacity to determine the entity's financial and operating policies; meaning the right to enforce control over or the power to practically influence the entity (CA2001 s.50AA)

control of an asset = the company's capacity to benefit from the asset in the pursuit of the company's business objectives and to deny or regulate the access of others to that benefit (SAC 4, AAS 29)

corporate governance = the principles of, ethics of, or the practical means and methodology of control

corporate performance management (CPM) = an umbrella term that describes all of the processes, methodologies, metrics and systems needed to measure and manage performance

Corporations Act 2001 = desktop annotation version, includes ASIC Acts, Regs

Cost of Goods Sold (COGS) = see Average Cost method, FIFO method, LIFO method, Retail Inventory method

costing = analysis of the costs of production for the purpose of control

cost centre = assigning certain costs in the production process to a particular production unit or production manager for the purpose of control

cost-volume-profit analysis = a methodology used in costing that concentrates on the interdependence between costs and profit at different levels (volume) of production

CPM = corporate performance management

CR = credit

credit adjustment = also called a credit note; record of credit adjustment to the debtor's account in the form of a tax invoice issued to the debtor

credit note = record of credit adjustment to the debtor's account in the form of a tax invoice issued to the debtor

creditor = a particular liability; short term (current) (usually) (accounts payable = trade creditors) or long term; an external party to whom something of value is owing at balance date

CSR = corporate social responsibility

current = within this financial year

current assets = an asset (usually tangible) that is likely to be received or that will be satisfied or whose value will fluctuate in the coming accounting period (usually within one year); includes cash on hand, cash at bank, accounts receivable, prepayments, inventory, particular short-term investments

current liabilities = a liability that is likely to be paid or satisfied or whose value will fluctuate in the coming accounting period (usually within one year); includes accounts payable, accrued expenses (accruals), particular short-term commitments & guarantees

current ratio = a measure/indication of a company's ability to pay short term obligations

customer file =

CVP = cost-volume-profit

day book = journal

debenture = a document issued by the borrower evidencing the loan

debt to equity ratio = financial ratio measuring a company's leverage

debtor = a particular asset; short term (current) (usually) (accounts receivable = trade debtors) or long term; an external party owing something of value at balance date

debtor friendly reminder = a first letter of notice to a debtor (accounts receivable)

debtor letter of demand = a letter of demand to a debtor (accounts receivable)

debtor legal process (State specific) = a number of steps to take action against a debtor (accounts receivable)

Declaration by Executives =

Declaration by Directors =

Declaration (of dividend) = a fixing of the dividend under CA2001 Part 2H.5 by the directors; differs for those under Constitution and those with replaceable rules; see replaceable rules directors' meeting or circulating resolution

Declaration Date = the date the directors' meeting or circulating resolution declares a dividend under CA2001 Part 2H.5. Note: for companies who have a Constitution providing for declaration of dividends, the company incurs a debt at this moment

Declining-Balance method = Reducing-Balance method; see work-sheet schedules: reducing balance method

delegation = the directors or board delgate their powers to another; must be minuted; closely related to indemnification; may be formally delegated by deed or instrument of delegation/indemnification

depreciable factor = (Historical Cost - Net Worth) or (Adjusted Purchase Price - Net Worth) (IAS 16) (AASB 1021)

depreciation = a cost over time; the process of allocating the value of a non-current (tangible) asset over the accounting periods of expected useful life recognised as an expense in the Statement of Financial Performance; see Straight-Line method, Reducing Balance method (Declining-Balance method), Units-Of-Production method (Units Of Use method)

depreciation expense = an expense required to systematically allocate the depreciable amount of a depreciable asset over its useful life (AAS 4)

Depreciation Schedules = see work-sheet schedules: straight line method and reducing balance method and units-of-production method

DGR = deductible gift recipient (ATO NAT 0669?6.2009)

differential costs = in costing when decisions are to be made, those costs that are common to all alternatives can be eliminated from the decision making process concentrating only on differential costs

direct costs = COGS

director = a person who is appointed as director of the company; a person who is appointed to the position of alternative director and is acting in that position; a person who is not validly appointed as director but who is acting as director and/or the directors are accustomed to act in accordance with their instructions and wishes (see Officer of the Corporation)

Director's Report = (when there is only one director)

Directors' Report = (when there is more than one director)

disclosing entity = an entity that holds ED securities and therefore must report to ASIC under CA2001; see policy statement under CA2001

discount = an amount deducted from the balance owing because of preferential treatment of a privileged class of debtor or for prompt payment

discount factor = percentage (of balance owing) used in calculating a discount or the percentage assigned to privileged class of debtor

discount factor = percentage (interest rate) used in calculating present worth or future worth in the discounting process

discounting = calculation of present worth or future worth at a given rate of interest

docDownload's Legal and political acronyms = Abbreviations and acronyms in common parlance in Australia

document of prime entry = a journal; a day book; a means of entry into the ledger; a first level record of a transaction that will subsequently be posted into the ledger; includes Cash Book, Sales Day Book, Purchases Day Book, General Journal

DR = debit

driver = KPI

DTA = double tax agreement (ATO NAT 0669?6.2009)

DVS = direct value shifting (ATO NAT 0669?6.2009)

economic entity = a group comprising the parent entity and each of its subsidiaries (AAS 1)

ED = enhanced disclosure (securities) under CA2001; see disclosing entity

efficiency = the extent to which the entity maximised the outputs produced from a given set of inputs or minimised the input cost of producing a given level and quality of outputs (AAS 29)

EFT = electronic funds transfer (ATO NAT 0669?6.2009)

EGM = Extraordinary General Meeting

ELS = electronic lodgment service (ATO NAT 0669?6.2009)

entity = any legal, administrative or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives (SAC 1, AAS 1, 4, 10, 24, 28, 29)

environment =

end of the accounting period = see balance date

EOM = end of (the) month; see 12 period method

EOP = end of (the standard accounting) period; see 13 period method

EOQ = end of (the) quarter; see 4 period method

EOY = end of (the) year; see 1 period method

EOY Adjustments = See adjustments

EOY Balances (Opening) = after the financial statements have been finalised the books of account are closed to make reference to the ledger easier and the Post-Closing Balances (30 June 2006) are brought into the new period and assigned a date representing the balance at the beginning of the new period (1 July 2006)

EOY Balances (Post-Closing) = the balances in the ledger after all revenues and expenses have been transferred to the P & L Account, all adjustments have been made, net profit has been transferred to the P & L Appropriations Account and all Appropriations for the year have been finalised

EOY Balances (Pre-Closing) = the balances in the ledger before adjustments have been made

EPA = environment protection activities (ATO NAT 0669?6.2009)

equity = net assets (Total Assets - Total Liabilities); capital

equity instrument = any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities (AAS 33)

equity investor = shareholder

ethical = correct, right, acceptable, under a given or agreed code of ethics

ethical = relating to considerations that affect the company's code of ethics

ethics dictionary = some important words for corporate ethics; See code of ethics

ETO = entrepreneurs tax offset (ATO NAT 0669?6.2009)

excise = tax on the manufacture of goods

executive officer = a person who is concerned in or who takes part in management regardless of designation and whether or not that person is a director (CA2001)

expense = reduction in asset or increase in liability arising from ordinary activity of the entity (SAC 4)

Extraordinary General Meeting (EGM) = See Special General Meeting

factoring = bad debts sold to a collection agency for a percentage of the bad debts owed at balance date

fair value = a revaluation of a non-current asset to the amount for which the asset could be exchanged to a third party (AASB 1041)

FBT = Fringe Benefit Tax

FDT = franking deficit tax (ATO NAT 0669?6.2009)

FHSA = First Home Saver Account (ATO NAT 0669?6.2009)

FIF = foreign investment fund (ATO NAT 0669?6.2009)

FIFO = First In First Out

FIFO method = inventory costing method for calculating COGS; (AASB 1019) (AASB 102)

final dividend = dividend proposed by the directors at the AGM (which includes any interim dividend) to be approved by the members

financial asset = (i) cash; (ii) a contractual right to receive cash or another financial asset from another entity; (iii) a contractual right to exchange financial instruments with another entity under conditions that are potentially favourable; (iv) an instrument of another entity that is an equity instrument (AAS 33)

financial instrument = any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity (AAS 33)

financial liability = a contractual obligation to deliver cash or another financial asset to another entity; or to exchange financial instruments with another entity under conditions that are potentially unfavourable (AAS 33)

financial plan = a particular type of campaign, that is to say a particular strategic sub-plan undertaken to achieve particular objectives resulting from a modified mission, related to the sales process for a financial product. A financial plan usually impacts on budgets over a number of years, controlled by marketing/sales but impacting on production.

financial position = the economic condition of a reporting entity, having regard to its control over resources, financial structure, capacity for adaptation and solvency (SAC 2)

financial records = basic documents for keeping the accounts day to day

financial records = obligation under CA2001

financial records = invoices, receipts, orders, money orders, bills of exchange, cheques, promissory notes, vouchers, documents of prime entry (journals), working papers (CA2001)

financial reports = obligation under CA2001

financial reports = annual financial reports under CA2001 s.295 or half-year financial statements under CA2001 s.303

financial statements =

Financial Statements/Reports interested parties (users) = investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies, the public

Financial Statements/Reports objectives = information to interested parties about the financial position, financial performance, cash flows, for making economic decisions

Financial Statements/Reports qualitative characteristics = understandability; relevance to interested parties (users) including materiality, reliability, faithful representation, substance over form, neutrality, prudence, completeness; comparability; timeliness; balance between cost and benefit; and a trade-off between these qualitative characteristics

financial year = a financial year for a company is determined by the directors and is the first financial year and subsequent financial years as described in CA2001 s.323D

financial year (first) = begins on day of incorporation; 12 months or as determined by the directors not longer than 18 months CA2001 s.323D(2)

financial year (subsequent) = 12 months (follows first financial year) CA2001 s.323D(2)

financial year (synchronisation) = consolidation requires synchronisation CA2001 s.323D(3)

financing activities = activities which change the size and/or composition of the financial structure of the entity, not falling within the definition of cash, including equity and borrowings (AAS 28)

First In First Out method = See FIFO method (AASB 1019) (AASB 102)

fixed assets = non-current assets, usually over $10,000, controlled by established "acquisition" and "disposal" rules and procedures, usually requiring board involvement and/or approval

fixed assets register = the key document to the control of fixed assets, linking to accounting, acquisition, depreciation, security, identification, location, supplier, warranty, and disposal; records the purchase and relevant details and disposal of important assets, say, over $10,000.

fixed cost = a cost (such as land and buildings of the factory, plant and machinery) that will need to be satisfied whether production takes place or not; see variable cost

FLIC = film licensed investment company (ATO NAT 0669?6.2009)

FMCG = fast-moving consumer goods (industry) (See Manufacturing and Marketing)

FMIS = forestry managed investment scheme (ATO NAT 0669?6.2009)

forex = foreign exchange (ATO NAT 0669?6.2009)

formation = process of company formation; includes incorporation with ASIC, first meeting, second meeting, consent to act, consent to use premises, shareholders' agreement, etc.

Fringe Benefits = Fringe Benefits that qualify for FBT could include company car benefits; debt waivers; interest-free or low-interest loans; housing benefits; expense benefits; living-away-from-home benefits; free or concessional fares; boarding benefits; meals and entertainment benefits; free or discounted goods

Fringe Benefits - free = Fringe Benefits that could qualify for exemption from FBT could include: contribution to superannuation fund; employee share acquisition scheme; free or discounted commuter transport; recreational facilities; child-minding facilities; remote area housing

Fringe Benefits Tax Reconciliation Statement =

FTDT = family trust distribution tax (ATO NAT 0669?6.2009)

full costing = see absorption costing

gain = net proceeds from the sale; may or may not arise from ordinary activities of the entity (SAC 4)

GDP = gross domestic product (ATO NAT 0669?6.2009)

General Journal = a special means of entry into the ledger; all transactions that are unusual or of importance requiring additional record and detail or any transaction that does not rightfully fit into any other journal; any transaction that has been the subject of a Board decision

General Ledger = see subsidiary ledgers

General Ledger =

General purpose financial report = a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (SAC1)

generalised mark-up = (strategic price planning) a commitment to basing price on anticipated COGS and what part of overhead costs this product can absorb, not on demand and supply

going concern = the entity is in operation and will continue in operation for the foreseeable future; it has neither the intention nor the need to liquidate or curtail materially the scale of its operations; see Goodwill

governance = see corporate governance

government organisation = see NFP

Gross Profit = Sales - COGS

Group Tax Reconciliation Statement =

goods = products, chattels

Goodwill = an intangible fixed or non-current asset purchased at the time of purchase of an existing business thereby recognising additional equity as a going concern; purchased Goodwill cannot be revalued (AASB 1013) (AAS 18)

GST = Goods (and) Services Tax

GVSR = general value shifting regime (ATO NAT 0669?6.2009)

historic cost = see historical cost

historical cost = cost (of an asset) as recorded in the books of account at the time of purchase

human resources = specialist terms & acronyms

human resources stakeholder =

IAS = International Accounting Standard

IFRS = International Financial Reporting Standard

Income Tax Act = desktop annotation version, includes regs

incorporation = registration with ASIC under CA2001

indirect costs = overheads; not included in COGS but should be covered by this product

information technology = specialist terms & acronyms

insolvent = unable to pay debts as and when they fall due

intangible asset = intangible fixed asset

intangible fixed asset = an asset that does not have tangible, physical substance, but entitles the owner to future economic benefits; examples include goodwill, management rights under contract, licence, registered business name, Intellectual property such as patents, trademarks, copyright

intellectual property (IP) =

interest in joint venture = non-current asset valued using the equity method; cannot be revalued to fair value (AASB 1006) (AAS 19)

interim dividend = dividend paid to the shareholders during the year in anticipation of a final profit (to be included in any final dividend proposed by the directors and approved by the members at the AGM)

internal stakeholder = See stakeholder

inventory = assets held for sale in the ordinary course of business; the process of production, preparation or conversion for sale; (AAS 2, AAS 4 )

inventory = lower of cost and net realisable value (AASB 102); for costing see Average Cost method, FIFO method, LIFO method, Retail Inventory method, (AASB 1019/AAS 2) (AASB 102) (IAS 2)

investment in associate = non-current asset valued using the equity method; cannot be revalued to fair value (AASB 1016) (AAS 14)

invoice = a formal record of a transaction with a purchaser/debtor given or sent to the purchaser/debtor by the supplier at the moment of sale; could be a tax invoice (inclusive of GST) or a non-tax invoice (exempt from GST)

IP = intellectual property

IRU = indefeasible right (to) use (telecommunications cable systems) (ATO NAT 0669?6.2009)

issue = issue of shares under CA2001 s.124(1)(a). Note: a company limited by guarantee does not have the power to issue shares.

ITAA = Income Tax Assessment Act

IVS = indirect value shifting (ATO NAT 0669?6.2009)

job costing = isolating the costs per job for controlling costs and calculating profit per job, may be useful for invoicing current projects and for pricing future projects

job file = special ledger for isolating job costs

joint and several = to accept responsibility together but can be sued individually for the whole amount

journal = a document of prime entry; a day book; a means of entry into the ledger; a first level record of a transaction that will subsequently be posted into the ledger; includes Cash Book, Sales Day Book, Purchases Day Book, General Journal

Key Performance Indicator (KPI) = a quantitative result, the technical/mathematical/scientific formula for which has been agreed to beforehand, that will reflect the level of success or failure of a particular product, event, company, department, project, etc.

Key Success Indicator (KSI) = See KPI

KPI = Key Performance Indicator

KSI = Key Success Indicator

large-business = enterprise employing 200+ persons (ABS 2006)

Large PTY LTD Company = more than $25 million Gross Revenue, $12.5 million gross assets, 50 employees, etc.; See policy statement under CA2001

Last In First Out = See LIFO method (not recognised in Australia (AASB 1019))

leasehold = property under lease

ledger = the accounting record; the key record of detail for all transactions in the period; there is a ledger account for all accounts listed in the Chart of Accounts; ledger accounts are balanced at balance date and a Trial Balance taken of all balances extant in the ledger at balance date

ledger account = a 'page' in the ledger; a single accounting record that differentiates detail for transactions in the period into 'type'; there is a separate ledger account for each 'type' of transaction and each ledger account is listed in the Chart of Accounts; ledger accounts are balanced at balance date and a Trial Balance taken of all balances extant in the ledger account at balance date

legal = specialist terms & phrases

legal & political = acronyms

liability = an item, tangible or intangible, of present and continuing worth/value which is obligated by the entity as a result of past events at balance date; such as accounts payable, accruals, loans

LIC = listed investment company (ATO NAT 0669?6.2009)

LIFO = Last In First Out

LIFO method = inventory costing method for calculating COGS (not recognised in Australia (AASB 1019))

liquidator = the person appointed to wind up the company

Listed = see public company

loss (on sale) = net reduction in assets from the sale; may or may not arise from ordinary activities of the entity (SAC 4), if it does it will appear in the P & L Account before the calculation of net profit for the period, if it doesn't it will appear in Extraordinary Items after the calculation of net profit for the period

loss (negative profit) = (generalised definition) decrease in equity for the period

MAKPI = Mission As Key Performance Indicator

managed investment scheme (MIS) = See registered scheme

manufacturing = using tools and labour to fabricate or produce goods

market tolerance = strategic pricing: what the market will bear

mark-up = a calculation for pricing based on anticipated COGS and required gross profit

material = comparatively significant (AASB 1031/AAS 5)

materiality = Accounting Standards to be applied where the impact of their application is material (AASB 1031/AAS 5)

MEC = multiple entry consolidated (ATO NAT 0669?6.2009)

medium-business = enterprise employing 20-199 persons (ABS 2006)

member (company) = shareholder

membership register = an important record that records the details of member(s) of the company and records changes to the membership, the sale of shares from one member to another, etc., details required to be recorded by the Corporations Act

micro-business = enterprise employing 1-4 persons (ABS 2006)

micro-business = enterprise employing less than 10 persons; has an annual turnover of less than ?2m and/or Balance Sheet assets of less than ?2m; and has no more than 25% of its capital or voting rights owned by a larger firm or public body (European Commission definition)

MIS = managed investment scheme; see registered scheme

mission = the overall aims and objectives of the company; why the company was formed; what the company is trying to achieve. It usually takes the form of a concise narrative statement that describes the definitive scope of the overall business. That is to say, from the mission statement it should be possible to derive what the company generally will and will not be involved in throughout its life.

mission statement = a statement made upon formation describing the fundamental purpose of formation; may be modified over time by shareholders at an Annual General Meeting or a Special General Meeting

NGO = non-government organisation (see NFP)

net assets = Total Assets - Total Liabilities; equity; capital;

net present value (NPV) = future expected cash inflows discounted to present value less future expected cash outflows discounted to present value

net market value (NMV) = the amount which could be expected to be received from the disposal of the asset in an orderly market after deducting costs expected to be incurred in realising the proceeds of such a disposal

net profit = Total Revenues - Total Expenses

Net Profit and Loss for the period = (IAS 8)

net realisable value (NRV) = current expected cash inflows to be obtained from orderly disposal of current assets less cost of disposal at current rates

net tangible assets (NTA) = Total Tangible Assets - Total Tangible Liabilities

Net Worth = amount expected to be recovered from the disposal of a depreciable asset at the end of its useful life (IAS 16) (AASB 1021)

NFP = not for profit

NFP Organisation = not for profit organisation (AASB 102 definition)

NGOs = specialist terms & acronyms

NMV = net market value

non-current assets = also known as fixed assets; include tangible fixed assets (land & buildings, plant & equipment, motor vehicles, computer equipment, office furniture & fittings, etc.) and intangible fixed assets (goodwill, management rights under contract, licence, registered business name, Intellectual property such as patents, trademarks, copyright, etc.)

non-current liabilities = debt that is owed/to be paid one year in the future

note = legal instrument admitting liability or promise to pay

Notes to and forming part of the Financial Statements = Notes which disaggregate and further explain the information contained in the primary financial statements, thereby freeing those statements from details that could otherwise obscure the key financial indicators

Notice of AGM = a notice to shareholders of a general meeting of the company held every year and required to be held by CA2001 s.250(N)

NPV = net present value

NRAS = national rental affordability scheme (ATO NAT 0669?6.2009)

OBU = offshore banking unit (ATO NAT 0669?6.2009)

obligation = a legal requirement; a duty

officer of the corporation = (under CA2001) a director or secretary or a person who makes decisions or participates in making decisions that affect the whole of the company or who can by his/her actions significantly affect the company's financial standing or who can issue instructions or wishes to directors/secretaries of the company and they will be carried out and others such as receiver, administrator, liquidator etc.; compare Public Officer

OFT = over-franking tax (ATO NAT 0669?6.2009)

operating activities = activities which relate to the provision of goods and services and other activities that are neither investing nor financing activities (AAS 28)

operational plan = a yearly plan related to production; there are different operational plans for different divisions/departments. That is to say, there is usually an operational plan for each division/department (each item at the second level of the organisation chart). The operational plan represents a particular year in the business plan or the strategic plan and follows the publication of the yearly budget.

operations management procedures = fault management, performance management, configuration management, inventory management, audit, risk management, and disaster recovery

Order = Purchase Order

ordinary activity of the entity = activity in pursuit of stated mission

overheads = indirect costs; that is, costs not considered part of COGS but which must be covered by the product in question; see generalised mark-up

P & L = Profit & Loss

PAYG = Pay As You Go (tax withholding system)

PAYG withholding payments = salaries and wages of employee(s); remuneration of company director; salaries and wages of office holder; other payments such as payment to a religious practitioner; return to work payment; payment covered by a voluntary agreement; payment under a labour hire agreement; a payment under regulation; pension payment; annuity payment; termination payment; payment for unpaid leave upon termination; social security payment; Commonwealth education or training payment; compensation, sickness or accident payment; a payment for which no TFN or ABN has been quoted, a payment made to an investor as income from a unit trust; dividend, interest or royalty paid to an overseas person or overseas lender or overseas establishment; superannuation payments to temporary residents; payments to foreign residents; mining and natural resources payments

payee = the person to receive the payment as mentioned on a cheque, bill of exchange

PE = permanent establishment (ATO NAT 0669?6.2009)

PDF = pooled development fund (ATO NAT 0669?6.2009)

Performance = the entity's proficiency in acquiring resources economically and using those resources efficiently and effectively in achieving specified objectives (SAC 2)

period = temporal classification; the 'passage of time' with a 'start date' and an 'end date' ('from to') (not a moment of reflection ('as at')); there are standard periods and non-standard or extraordinary periods

personal = some terms & acronyms that impact on ordinary people in their private lives

Petty Cash Book = a special journal for recording all transactions related to the spending of cash held in the Petty Cash Float

Petty Cash Float = an amount of money withdrawn from the Bank and held as Cash In Hand for the purpose of Petty Cash Transaction; All transactions to date + balance of Cash In Hand = Petty Cash Float

Petty Cash Voucher = a document designed to record the details of a spending of money from the Petty Cash Float, obtain signatures etc. and to represent cash taken from the Petty Cash Float, so that at any time the sum of all Petty Cash Vouchers in hand + Cash In Hand = Petty Cash Float

PHC = provisional head company (ATO NAT 0669?6.2009)

philosophical concepts = special terms and phrases

political stakeholder =

pooled development fund (PDF) = provides development capital to small and medium sized companies (ATO NAT 0669?6.2009)

pre-emptive offer = an offer of pre-emptive rights of issue of shares under CA2001 s.124(1)(a) required under s.254D to be offered to existing shareholders first. Note: a company limited by guarantee does not have the power to issue shares.

pre-paid expenses = see prepayment

prepayment = a payment made in this period but which relates to income that will be received in the next/coming period; a prepayment usually comes about by the entry into the General Journal at the EOY of a transaction reversing an expense to appear as an asset because it refers to the coming period; this is then reversed the next day

present value (PV) = future expected cash inflows discounted to present value

price = see setting a price; see resale price maintenance

privacy = a person's right to freedom from unauthorised intrusion into their life by another person (a company) or by the government when it is not necessary for a government to do so. Recent interest in "privacy" has placed a lot of emphasis on a person's right to have personal information, known about them by a government department or an association or a company, revealed to them on application, protected from others and restricted from dissemination, and removed when not necessary for normal operational routines. For a company it usually refers to the company's moral responsibility to protect the privacy of the people that it deals with and the company's legal obligation to ensure that its activities comply at all times with legislation that seeks to protect privacy, such as the Privacy Act 1988 (Cth) and associated regulations such as the Privacy (Private Sector) Regulations 2001

profit (on sale) = net increase in assets from the sale; may or may not arise from ordinary activities of the entity (SAC 4), if it does it will appear in the P & L Account before the calculation of net profit for the period, if it doesn't it will appear in Extraordinary Items after the calculation of net profit for the period

profit = (generalised definition) increase in equity for the period

Profit & Loss Account = a separate account in the General Ledger for identifying the key figures that constitute Net Profit for the period

Profit & Loss Appropriations Account = a separate account in the General Ledger that receives a figure for Net Profit for the period from the Profit and Loss Account and shows the impact of the Board decision on how that Net Profit is to be distributed

project management = specialist terms & acronyms

project plan = a particular strategic sub-plan undertaken to achieve particular objectives resulting from a modified mission. A project usually impacts on budgets over a number of years, and could be controlled by and impact on any division/department, depending upon what objectives are involved. Usually a project refers to a particular type of investment, such as systems upgrade or infrastructure development or new productive processes

Proprietary = see PTY

provisions and payables = liabilities that have arisen as a result of goods and services received (e.g. from employees) and normally do not generate an ongoing interest expense

Provisions (Current) = a particular form of reserve that takes into account and makes allowance for a contingency that is likely to occur in the next period, not allowing distribution of profits until the contingency is satisfied

Provisions (Non-Current) = a particular form of reserve that takes into account and makes allowance for a contingency that is likely to occur in subsequent period(s), not allowing distribution of profits until the contingency is satisfied

Provision for Bad & Doubtful Debts = a current liability created to correspond to a balance retained in the debtors ledger that appears to still recoverable but is obviously doubtful

Proxy for Annual General Meeting = a formal appointment of a person to represent a member at the AGM

Proxy for Special General Meeting = a formal appointment of a person to represent a member at the SGM

PS = Professional Standard

PSI = personal services income (ATO NAT 0669?6.2009)

PST = pooled superannuation trust (ATO NAT 0669?6.2009)

PTD = project to date

PTY = Proprietary Limited (type of company); classified into large and small

PTY (large) = more than $25 million Gross Revenue, $12.5 million gross assets, 50 employees, etc.; See policy statement under CA2001

PTY (small) = up to $25 million Gross Revenue, $12.5 million gross assets, 50 employees, etc.; See policy statement under CA2001

Public Company = any company that is not Pty; must have "Limited" in its name; includes listed companies; See policy statement under CA2001

Public Officer = appointment of an officer of the corporation to represent the company on tax matters; appointed within three months of commencement of trading; name and address of the public officer is registered with the ATO for the service of notices on the company by the ATO; appointed, a natural person, capable of understanding the appointment, at least 18 years of age, ordinarily a resident of Australia. The public officer is answerable for everything that is required of the company for tax-related purposes and if in default is liable to the same penalties as the company, but is not liable for tax due

purchase = buy; buy goods of trade/services or assets

Purchase Order =

purchaser = buyer

Purchases Day Book = a particular journal for recording all transactions of purchases of goods and/or services from an external party via invoice

QA = quality assurance

QC = quality control

quality = compliant with ISO 9000, ISO 9001, ISO 14000, etc.

quality assurance analyst = a person who is responsible understanding QA standards (such as the ISO 9000 family) and applying them within an organisation

quick asset =

quick ratio = company's financial strength, calculated by quick assets/current liabilities

R&D = research & development (ATO NAT 0669?6.2009)

RBA = running balance account (ATO NAT 0669?6.2009)

realised = value that may have been known to exist and have been recognised by an entry in the Asset Revaluation Reserve but is not finally proven until the asset is sold thereby representing the increased value by the flow of value from a third party at arm's length trading (AAB 1041)

realisable value (RV) = current expected cash inflows to be obtained from orderly disposal of current assets

receiver = person appointed by the court to deal with the affairs of a bankrupt or an insolvent company to ensure that they are dealt with properly

Reducing-Balance method = see work-sheet schedules: reducing balance method

registered scheme = an entity that is or has a managed investment scheme (MIS) and therefore must register with and report to ASIC under CA2001; see policy statement under CA2001

related party loans = loans from the principals or the principals' family members, often non-interest bearing

replaceable rules = replaceable rules (provided by ASIC) allowed for under the CA2001

reporting entity = an entity (including an economic entity) containing users dependent on information for making economic decisions (SAC 1, 2) (AAS 1, 4, 10, 24, 28, 29)

Retail Inventory = inventory costing method for calculating COGS; a form of standard costing (AASB 1019) (AASB 102)

retained earnings = profits that have been earned but not distributed to shareholders but retained as an increase to equity in a reserve called Retained Earnings Account for protection against future losses or future capital investment or future distribution

resale = to buy a product and on-sell at a mark-up

resale price maintenance = an offence under the Trade Practices Act 1974

reserves = a method for keeping track of the increases to equity that have occurred in the past or the assignment of equity for future purposes; examples include Asset Revaluation Reserve, General Reserve, General Reserve For Credit Losses, Retained Earnings Account

Retail Inventory Method = inventory costing method for calculating COGS (SIC 1)

revaluation = recognising an increase to the value of a non-current asset at a particular date by a General Journal entry to the Asset Revaluation Reserve

revenue = inflow or other enhancement (or savings in outflow) of future economic benefit; increase in asset (or reduction in liability) arising from ordinary activity of the entity (SAC 4)

risk management = specialist terms & acronyms

RSA = retirement savings account (ATO NAT 0669?6.2009)

SAC = Statement (of) Accounting Concepts

Sales Day Book = a particular journal for recording all transactions of sales of goods and/or services to an external party via invoice

secured = (a creditor/note/loan that is) guaranteed by a legal charge over property

setting a price = see generalised mark-up versus market tolerance; see resale price maintenance

simple interest = if interest on a loan is paid to the lender as it is earned than any calculation of interest on the loan will be simple; if interest is accumulated on the loan then interest calculation will be compound interest as interest in the next period will include interest on the interest factor accumulated as part of the loan

SGM = Special General Meeting

share = a certificate that records ownership of a share in the company's equity by a member whose name address and other details is recorded in the company's membership register

share buy backs (ORDs only) = reduction in share capital through the buy back at buy-back price of ordinary shares from shareholders and the cancellation of those shares; see General reduction - Equal offer to all and Selective reduction

share capital =

shareholder = when somebody speaks of the shareholders they are usually referring to members of the company who own ordinary shares; there are other types of shares such as preference shares

short term = within the coming year

single member company = a company (a small PTY company that has only one member, meaning one person who is the only shareholder and the only director

small-business = enterprise employing 5-19 persons (ABS 2006)

small-business = entity carrying on a business that has an aggregated turnover of less than $2 million. (ATO NAT 0669?6.2009)

small-business = enterprise employing less than 50 persons; has an annual turnover of less than ?10m and/or Balance Sheet assets of less than ?10m; and has no more than 25% of its capital or voting rights owned by a larger firm or public body (European Commission definition)

small-to-medium-business = small-to-medium-enterprise

small-to-medium-enterprise (SME) = enterprise employing 5-199 persons (ABS 2006)

small-to-medium-enterprise (SME) = enterprise employing less than 250 persons; has an annual turnover of less than ?50m and/or Balance Sheet assets of less than ?43m; and has no more than 25% of its capital or voting rights owned by a larger firm or public body (European Commission definition)

Small PTY LTD Company = up to $25 million Gross Revenue, $12.5 million gross assets, 50 employees, etc.; See policy statement under CA2001

SME = small-to-medium-enterprise

SME = small (and) medium enterprises (ATO NAT 0669?6.2009)

SME business plan = essential start of any business

solvent = able to pay debts as and when they fall due

Special General Meeting =

specialist = See business analysis specialist

spread = buy and sell (a) hedge(s) at the same time against the buy

stakeholder = the customer to the tech writer (the customer who needs to be satisfied) is the manager or operator whose own customers are the audience of the document, usually called the stakeholder; there may be a number of these, See human resources stakeholder, political stakeholder, technical stakeholder

standard costing = See Retail Inventory method (SIC 1)

standard period = a standard or agreed definition for the 'passage of time' useful for planning and reporting; See accounting period; in Australia, periods are assumed (unless otherwise declared) to be
period 0 = separable balances brought forward;
period 1 = separable financial year transactions for July;
period 2 = separable financial year transactions for August;
period 3 = separable financial year transactions for September;
period 4 = separable financial year transactions for October;
period 5 = separable financial year transactions for November;
period 6 = separable financial year transactions for December;
period 7 = separable financial year transactions for January;
period 8 = separable financial year transactions for February;
period 9 = separable financial year transactions for March;
period 10 = separable financial year transactions for April;
period 11 = separable financial year transactions for May;
period 12 = separable financial year transactions for June;
period 13 = separable EOY adjustments and appropriation;
period 14 = separable financial year transactions EOY (same as period 0).
But in Australia a standard period could refer to, for example, a micro second (research & design); a second (health & safety & scientific); a minute (security & control); an hour (health & safety & manufacturing output & resourcing); a day (sales); a week (wages & performance); a month (inventory & finance & planning & strategic); a quarter (GST); a year (shareholders & ATO & ASIC); a decade (mission & trends & history); a century (environment); a millennium (temporal data integrity);

Statement of Cash Flows = a particular Note To And Forming Part Of the Financial Statements for the period explaining the change of Cash At Bank and Cash In Hand from the previous period by explicating cash flows for the period

Statement of Financial Performance = a particular Note To And Forming Part Of the Financial Statements for the period explaining performance by the application of particular performance indicators and comparing performance in this period to previous periods

Statement of Financial Position = a simplified Balance Sheet for inclusion in published Financial Statements

Statement of Retained Profits = a particular Note To And Forming Part Of the Financial Statements for the period explaining reserves at the end of the period and changes to those reserves due to financial performance for the period

stock = inventory

stock-in-hand = value of inventory at end of period

stock listing =

Straight-Line method = see work-sheet schedules: straight-line method

strategic plan = internal political, economic, financial and legal planning document

strategic plan = a longer term plan related to modification of longer term objectives or overall mission. It is similar to a business plan but for an existing operating company. Usually this relates to looking at a period (such as the past 5 or 10 years) and comparing plans to outcomes and determining if objectives agreed to at the start of this period have been achieved. Reasons for successes and/or failures are revealed and analysed and explained. Future changes to objectives or overall mission are agreed to and a modification to the original business plan is carried out and represented in the new strategic plan. The strategic plan is agreed by the board after interaction with key managers responsible for success/failure and used by key managers to modify objectives and operational plans.

STS = simplified tax system (ATO NAT 0669?6.2009)

subsidiary = an entity which is controlled by a parent entity (AAS 1, 4, 10, 24, 28, 29)

subsidiary = a company owned and/or controlled by this company because (i) we control the composition of the company's board; or (ii) we are in a position to cast, or control, more than one-half of the votes at an AGM or an SGM; or (iii) we hold more than one-half of the issued share capital (CA2001 s.46)

subsidiary ledger = when the Ledger is broken into a series of sections including the main section relating to the overall Financial Statements (called the General Ledger) and (an)other section(s) to allow other departments control over that section of the ledger, such as control over accounts receivable being assigned to the Sales department where all trade debtors are represented by a Control Account in the General Ledger and broken down into individual trade debtor accounts in the Sales department

sundry = a transaction having a purpose incidental to the main terms of trade; sundry debtors, sundry creditors, sundry income, sundry expenses

sundry creditor = money owed by us at balance date having a purpose incidental to the main terms of trade

sundry debtor = money owed to us at balance date having a purpose incidental to the main terms of trade

sundry expense = a transaction resulting in expenses but having a purpose incidental to the main terms of trade; it is recorded after the calculation of Gross Profit

sundry income = a transaction resulting in revenue but having a purpose incidental to the main terms of trade; it is recorded after the calculation of Gross Profit

Superannuation Reconciliation Statement =

sustainability report = a report that looks at the viability of long term participation of the company in the environment in which it operates; usually written for a large player like a global or national supplier or a government department or local government entity, but will have more and more use to SME players as "global warming" and "environmental change" obtains more acceptability

sustainability report = viability of long term participation of the company in the environment in which it operates

SWOT = Strengths/Weaknesses (and) Opportunities/Threats (a business planning format promoted enthusiastically in the early eighties, less today, but still considered of some use in SME business plans)

tangible asset = tangible fixed asset

tangible fixed asset = an asset that has tangible, physical substance; examples include land & buildings, plant & equipment, motor vehicles, computer equipment, office furniture & fittings

tax invoice = a formal record of a sale to a purchaser of a service or product given or sent to the purchaser by the supplier at the moment of sale that addresses the product, price, terms of trade, payment, indebtedness and liability for GST

tax liability method = recognising taxation revenue at the time when tax payments are due and payable

tax records = Income Tax Assessment Act 1936 requires tax records to be kept for five years, including vouchers, invoices, journals, ledgers, bank accounts, financial statements, documents describing election, estimation, determination, calculation, etc. Income Tax Assessment Act 1997 requires records of any matters that may affect capital gains and losses.

taxable income = the amount determined by the Tax Commissioner upon which income tax is to be charged; for a corporate entity it is the net profit adjusted for tax requirements and concessions determined from time by the ATO

TBNT = trustee beneficiary non-disclosure tax (ATO NAT 0669?6.2009)

technical stakeholder = the stakeholder from the technical section, concerned with national and international standards, compliance, usability, operability, resilience

TFN = Tax File Number

ten-column work-sheet for EOY Balances & Adjustments = this is the document that links the balances in the Ledger, as shown in the Trial Balance, to the final published Financial Statements, where adjustments to and design of the final accounts takes place

tendering = specialist terms & acronyms

term = period; see 1-, 4-, 12-, 13- period term

terms of trade = see terms and conditions of sale

terms and conditions of sale = company policy and law related to the sale of goods and/or services

trade debtor = a particular current asset; also called accounts receivable; a sale via normal trading terms to an external party via invoice recorded in the Sales Day Book and still owing money at balance date

trade creditor = a particular current liability; also called accounts payable; a purchase of a good or service from an external party via invoice recorded in the Purchases Day Book and still owed money at balance date

Trial Balance = a list of all accounts in the ledger at the end of an accounting period, EOM, EOQ, EOY, showing the balance on each account and comparing totals DR & CR, which in a double entry accounting system is the first test of accuracy

UCA = uniform capital allowances (ATO NAT 0669?6.2009)

Units-Of-Production method = see work-sheet schedules: units-of-production method

Units Of Use = see units-of-production

unrealised = value that may exist but is not yet proven because it has yet to be represented by the flow of value from a third party at arm's length trading

unsecured = (a creditor/note/loan that is) not guaranteed by a legal charge over property

useful life = the number of years (remaining) in which the fixed asset (such as plant and machinery) at present in use in the productive process is deemed to remain useful in the productive process

UNSPSC (pronounced letter by letter) = United Nations Standard Products & Services Code

value = calculable and supportable monetary value of an asset based on accounting standards

variable cost = a cost (such as labour, raw materials, direct production costs) that will change in direct proportion to the level of production or business activity; see fixed cost

variance = (Budget - Actual)

vendor = seller

WDV = written down value

WIP = work in progress

work in progress =

work in progress (WIP) = an account containing costing to date of all production started but not finished at the time of accounting (end of period or balance date); raw materials, labour, and overhead expended to date on unfinished product; costed at agreed costing method such as standard costing

worksheet schedule =

working capital = capital in current use in operations: (Current Assets - current liabilities); net assets available at EOY to the normal course of operations of the entity to be consumed or converted to cash within the next period

working papers = documents used and needed to explain particular transactions and/or financial statements; integral part of a financial statement, not published but needed to explain transactions or financial statements if ASIC ask

written on (taken up) = unexpected gain from disposal of fixed asset transferred to profit & loss account as revenue at the EOY

written off = unexpected loss from disposal of fixed asset transferred to profit & loss account as expense at the EOY

written down value (WDV) = historical cost of a non-current asset less total depreciation to date

YTD = year to date



We trust you have found this information valuable and appreciate all feedback.