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Global

Terms starting with

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Investment Portfolio

An investment portfolio is a collection of financial assets such as stocks, bonds, and other securities held by a business or individual. It is managed…

Interest Accrual

Interest accrual refers to the recognition of interest expense or income over time, even if it has not yet been paid or received. It ensures…

Income Distribution

Income distribution refers to how profits are allocated among stakeholders, such as shareholders, employees, or reinvestment in the business. It includes dividends, bonuses, and retained earnings. Proper…

Investment Appraisal

Investment appraisal is the process of evaluating the feasibility and profitability of potential projects or investments. Techniques such as net present value and internal rate…

Initial Public Offering (IPO)

An initial public offering is the process through which a private company offers its shares to the public for the first time. It allows businesses to…

Implicit Cost

Implicit cost represents the opportunity cost of using resources owned by a business instead of renting or selling them. These costs are not recorded in financial statements…

Income Statement Analysis

Income statement analysis involves evaluating a company’s revenue, expenses, and profit trends over a period. It helps identify cost patterns, profitability drivers, and operational efficiency. Analysts use…

Investment Income

Investment income refers to earnings generated from financial investments, such as interest, dividends, or capital gains. It is recorded separately from operating income to distinguish…

Inventory Valuation

Inventory valuation determines the monetary value assigned to inventory for financial reporting. Methods such as FIFO, weighted average, or specific identification affect cost of goods sold and…

Income Tax Expenses

Income tax expense represents the total tax payable on a company’s taxable income for a given period. It includes both current tax and deferred tax components. Proper…

Inflation Accounting

Inflation accounting adjusts financial statements to reflect the impact of rising price levels on assets, liabilities, and income. It ensures that reported figures remain meaningful in periods…

Indirect Cost Allocation

Indirect cost allocation is the process of distributing overhead expenses, such as rent or utilities, across departments or products using logical bases. Since these costs…

Income Recognition

Income recognition refers to the accounting principle that determines when revenue should be recorded in financial statements. It ensures income is recognised when it is earned, not…

Interest Coverage Ratio

Interest coverage ratio measures a company’s ability to meet its interest obligations using operating income. It is calculated by dividing earnings before interest and taxes…

Internal Audit

Internal audit is an independent review function within an organisation that evaluates financial processes, internal controls, and risk management practices. It helps identify inefficiencies, detect fraud risks,…

Investment Property

Investment property refers to real estate held to earn rental income or for capital appreciation rather than for operational use. It is measured either at…

Input Cost Allocation

Input cost allocation distributes production costs, such as materials and labour, across units produced or services delivered. Proper allocation ensures accurate product costing and profitability…

Income Smoothing

Income smoothing is a practice where management attempts to reduce fluctuations in reported earnings across periods. It may involve timing revenue recognition or expense allocation…

Insolvency

Insolvency occurs when a business cannot meet its financial obligations as they become due. It may arise from poor cash flow management, excessive debt, or…

Issued Share Capital

Issued share capital represents the portion of authorised capital that a company has offered and allocated to shareholders. It reflects funds raised from investors in…

Initial Recognition

Initial recognition refers to the process of recording an asset, liability, income, or expense in the financial statements when it first meets accounting criteria. Measurement…

Indirect Tax

Indirect tax is a levy collected by an intermediary, such as a retailer, from the end consumer and then remitted to the government. Examples include…

Indirect Expense

Indirect expense is a cost that cannot be directly traced to a specific product, service, or department. Examples include utilities, rent, and administrative salaries. These…

Imputed Cost

Imputed cost is a notional expense assigned to the use of resources owned by a business but not actually paid for. Examples include opportunity cost…

Idle Capacity

Idle capacity refers to unused production potential within a business during a specific period. It represents resources such as labour, machinery, or facilities that are…

Inventory Turnover Ratio

The inventory turnover ratio measures how efficiently a company manages its inventory by comparing cost of goods sold to average inventory. A higher ratio indicates…

Intercompany Transactions

These are transactions that occur between entities within the same corporate group, such as sales, loans, or service charges. They are eliminated during consolidation to…

Input Tax Credit (ITC)

Input tax credit allows businesses to claim credit for the GST paid on purchases used for business operations. It reduces the overall tax liability by…

Incurred Expense

An incurred expense is a cost that a business has become liable for, regardless of whether it has been paid yet. It is recognised when…

Incremental Cost

Incremental cost refers to the additional expense incurred when producing one extra unit of output or undertaking a specific decision. It helps management evaluate the…

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