[ V ]
 
 
Variable overheads
 
o         indirect expenses that vary directly with output eg power
 
 
 
Variances
 
o         the difference between a budgeted performance and the actual performance achieved.
 

[ U ]
 
Understandability
 
o         Information provided in financial statements has the quality of understandability when is comprehensible to users who have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence.
 

[ T ]
Tangible asset
o a physical asset
Times interest earned
o the number of times that loan interest is covered by profits, ie earnings(profits) before tax and interest divided by the interest charge. It indicates how safe creditors interest charges are.
Thin capitalization

a thinly capitalized company is one where its capital structure consists of very high debt/gearing level.
many […]

[ S ]

Sale and leaseback transaction

The sale of an asset and the leasing back of the same asset. The lease payment and the sale price are usually interdependent because they are negotiated as a package.

Sarbanes-Oxley

The Sarbanes Oxley(SOX) Act of 2002 is a piece of US legislation

It was introduced in […]

[ R ]
 
 
Realisable value
 
o         The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal.
 
 
Recognition
 
o         The process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the following criteria for recognition:
a.       it is probable that […]