• Current Asset

    An asset that is not intended to be tied up over the long term (i.e., for more than one year), such as for example liquid assets, inventories, work in process, supplies, and short-term receivables.

  • Deferred Tax Liability

    The tax liability that remains unrealized in the untaxed reserves of a company.

  • Depreciation

    Outlay for a purchased fixed asset that is redistributed over a longer time period.

  • Depreciation According to Plan

    Method for the calculation of the decrease in value of a fixed asset. The economic life is established, and thereafter, a percentage depreciation of the acquisition value takes place each year. This method does not take into consideration the replacement value.

  • Direct Cost

    A cost that can be assigned directly to a certain product, order, or cost unit in the account.

  • Discounting

    Calculation of the present value of future costs and revenues (such as, for example, in capital budgeting).

  • Economic Life

    The time period during which a particular facility is estimated to be economically profitable to operate. Used in working out depreciation according to plan and cost replacement depreciation.

  • Equity

    Equity is the accumulated value of 1) the owner's investments in the company + 2) accumulated profits (and losses) from previous years + 3) this years net income - 4) dividends paid to owners. An other way to explain Equity is Assets - Liabilities.

  • Expenses

    Costs that are regarded in the company's accounts as indirect and which are charged to a cost center.

  • Extraordinary Revenues and Costs

    Revenues and costs that do not normally arise for the company. In order for a revenue or a cost to be regarded as extraordinary, it must not be related to the business itself and it must be of a one-time nature, and it must also be of a sufficiently large amount.

  • Financial Expenses

    This includes for example interest expenses of various types.

  • Financial Income

    This includes for example interest income of various types.

  • Financial Items

    Refers to interest income, share dividends, and interest expenses.

  • Financial Strength

    This expresses the company's level of financial exposure or risk over the longer term, usually in ratio form. It is normally calculated by placing shareholder's equity in relation to total capital.

  • Fixed Assets

    Assets that are intended to be used for many years (i.e., longer than one year). It is common to distinguish between tangible fixed assets (machines, buildings, vehicles, etc.) and intangible fixed assets (goodwill, leases, etc.). A third category of fixed assets is financial fixed assets (such as shares, liabilities, and long-term receivables).

  • Fixed Assets

    The book value of plant and equipment, i.e. the acquisition value (possibly indexed upwards) minus any depreciation that has been charged.

  • Fixed Cost

    A cost that in its entirety is independent of changes in the volume of production or sales when these vary within the existing range of capacity.

  • Full Cost

    The full cost of a product is determined by the manufacturing cost plus an additional overhead for expenses. For a purchased item, the full cost is equal to the purchase price and any other costs associated with the purchase.

  • Full-Cost Calculation

    A "complete" product calculation that also considers the indirect costs of the company.

  • Goods in Stock

    This item represents raw materials, work in process, and finished products, and, in the case of service companies, ongoing work.