Glossary Of Accounting & Finance Terms-Alphabet D

[ D ]

Debenture

o a certificate issued under seal by a company acknowledging a debt.

Deferred liabilities

o a subdivision of long-term liabilities eg tax payable next year and not of a fund-raising nature such as debentures

Deferred taxation

o corporation tax payable by a company in the longer term ie not within a year

Depreciation (amortisation)

o The systematic allocation of the depreciable amount of an asset over its useful life.
o The reduction in value of an asset due to obsolescence, wear and tear or the passing of time
[ In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’. The two terms have the same meaning. ]

Directors’ emoluments

o payments to directors for services in this capacity

Discounted cash flow

o the present value of future cash inflows and outflows

Dividends

o Distributions of profits to holders of equity investments in proportion to their holdings of a particular class of capital or
o profits paid to shareholders expressed as a percentage of the nominal value of their shares

Dividend cover

o earnings per share divided by dividend per share, ie the number of times that earnings cover the declared dividend.

Dividend yield

o refer current yield