Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
The amount at which an asset is stated on the balance sheet after deducting accumulated depreciation, amortisation, impairment or — for an equity-accounted investment — the investor’s share of losses.
For a loss-making associate or joint venture it acts as a floor at zero. Once it is exhausted, further losses stop being recognised, and reported profit improves with nothing having changed.
The difference between the net proceeds of selling a business or asset and its carrying amount in the accounts.
Cash that belongs to you and arrives once. It sits inside total earnings per share, which is why the year of a large sale looks like the cheapest year in a decade.
The purchase by a parent of the shares in a subsidiary held by others, where control was already held — accounted for as a transaction between owners, with the excess over the carrying amount of the non-controlling interest charged directly to equity.
No goodwill and nothing through profit. Earnings per share rises whenever the profit picked up beats the after-tax funding cost, which holds across a wide span of prices, and book value per share falls at any price above the carrying amount bought out — so neither movement is evidence that the price was sensible.
The treatment of an associate or joint venture under which the investment starts at cost and is then increased by the investor’s share of the investee’s profit, reduced by its share of losses, and reduced again by dividends received.
One post-tax line of profit and one line of carrying amount. No revenue, no assets, no borrowings and no interest cost from the investee reach your accounts at all.