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 9 terms
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.
The removal of a subsidiary from consolidated accounts, line by line, when control over it is lost — with any retained interest recognised at fair value and the resulting difference taken to profit or loss.
Revenue leaves and so do the borrowings, which reads as deleveraging with no repayment. It also happens when a subsidiary enters insolvency and a resolution professional displaces its board.
A fall in the number of participants in an industry as capacity is retired, acquired or resolved through insolvency, leaving the survivors facing less competition.
The tell that it is actually working is that realisations stop falling before volumes recover — price discipline needs only a decision, demand needs a cycle.
A withdrawn treatment under which an investor included its percentage share of each line of a jointly controlled entity. Ind AS 111 removed it as an option for joint ventures, which are equity-accounted instead.
Worth knowing because older reports and a good deal of commentary still use the phrase. A joint operation looks similar on the face of the accounts but is a different thing: recognition of the party’s own assets and obligations, not a proportion of somebody else’s.
A gap out of a consolidation on heavy volume, usually driven by genuine news.
The most significant gap type, and the one least likely to fill.
Buying a decisive close beyond a consolidation range, on the expectation that compression resolves into a directional move.
The volume filter is the strategy. A breakout on below-average volume is a thin order book making a big-looking move that gets handed straight back.
A consolidation whose highs and lows converge — ascending with a flat top, descending with a flat bottom, or symmetrical with both sides closing in.
It should resolve in its final third. One that drifts all the way to the apex has dissipated its energy, and the eventual break is far less reliable.
A company in which there is significant influence but not control.
Included by the equity method — a share of profit rather than line-by-line consolidation.
Cash held in a group entity from which it cannot readily be moved to where it is needed — because of that entity’s other shareholders, a lender’s consent, a distributable-profits test, or a cross-border tax cost.
Distinct from restricted cash, which is legally encumbered where it sits. Trapped cash is unencumbered and in the wrong company, and consolidation adds the two together without comment.