A Balance Sheet is a financial statement that presents the financial position of a company at a specific point in time. It details the company's assets, liabilities, and shareholders' equity, ensuring that the assets are balanced by the sum of liabilities and equity.
Biannual refers to events or actions that occur twice within a single year, similar to the term 'semiannual.' It is important not to confuse it with biennial, which means occurring every two years.
Book depreciation refers to the method that accountants and businesses use to systematically allocate the cost of tangible assets over their useful lives.
Depreciated cost, also known as book value or adjusted tax basis, represents the value of a property after accounting for depreciation – the gradual reduction in the value of an asset over time. This figure is used in financial reporting and tax assessments to reflect the lowered worth of a property due to wear and tear, deterioration, or obsolescence.
The term End of Year (EOY) refers to the time typically at the end of the fiscal or calendar year, important for financial reporting, tax preparation, and business analysis.
Financial Accounting Standards Board (FASB) 141 outlines the principles for recognizing and measuring assets and liabilities acquired in a business combination. This standard ensures accurate financial reporting for mergers and acquisitions within Generally Accepted Accounting Principles (GAAP).
Financial transparency in real estate involves the full disclosure and public reporting of financial activities, allowing outsiders to accurately estimate risk and forecast income from investments.
A fiscal year is a continuous 12-month period used for financial reporting that starts on any date after January 1st and ends one year later, distinct from the calendar year.
The term Fiscal Year (FY) is used in business and finance to signify a one-year period chosen for accounting and financial reporting purposes. Unlike the calendar year that runs from January 1 to December 31, a fiscal year can start and end on any dates as chosen by the organization.
Generally Accepted Accounting Principles (GAAP) are a set of rules and guidelines prepared by the Financial Accounting Standards Board (FASB) and adhered to by Certified Public Accountants (CPAs) to ensure consistency, reliability, and transparency in financial reporting.
Mark to (the) Market refers to the practice of valuing a security or portfolio in accordance with its current market value rather than its historical cost. This practice ensures that margin accounts comply with necessary maintenance requirements and provides accurate, up-to-date valuations for mutual funds.
The original cost represents the total purchase price initially incurred for acquiring an asset, including any associated acquisition expenses. This figure is essential for various financial calculations and reporting, forming the baseline for depreciation, amortization, or gain and loss assessments.
Pretax income refers to the amount of income that a business or individual earns before any income taxes are deducted. This figure is crucial for determining the net profitability of operations and for financial analysis.
Tax preference items are specific types of income or deductions that are added to gross income to calculate the Alternative Minimum Tax (AMT). These items can include types of depreciation on real estate, among other things.
USALI is a standardized accounting system used within the hotel industry to ensure consistency in financial reporting, improve financial analysis, and aid management in decision-making processes.
