Glossary Of Accounting &Finance Terms-Alphabet P

[ P ]

Parent

o         An entity that has one or more subsidiaries.

Profit

o         The residual amount that remains after expenses (including capital maintenance adjustments,where appropriate) have been deducted from income. Any amount over and above that required to maintain the capital at the beginning of the period is profit.

Profit or loss for the period

o         A separate line item on the face of the income statement in which all items of income and expense recognised in a period are included unless a Standard or Interpretation requires otherwise.

Property,plant and equipment

o         Tangible items that:

a.       are held for use in the production or supply of goods or services,for rental to others,or for administrative purposes;and

b.       are expected to be used during more than one period.

Provision

o         A liability of uncertain timing or amount

Prudence

o         The inclusion of a degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty,such that assets or income are not overstated and liabilities or expenses are not understated.

Paid-up capital

o         a “ fully-paid” share is one where the nominal value has been fully subscribed;whereas a share of,say,nominal value of $1,if only 50 cent has been subscribed per share,is described as “ partly paid”

Par value

o         when issued “at part” the issue price is equal to the nominal value. When issued at a “premium” the issue price is in excess of the nominal value,and when at a “discount” below the nominal value.

Ploughed-back profits

o         profits retained in the business

Preference shares

o         that part of the share capital preferred to the remainder of the ordinary share capital for the payment of dividend and/or for the repayment of capital on a winding up.

Price earning (P/E)

o         current market price of the share divided by the last reported earnings attributable to the share.

Prime costs

o         the total of direct materials,labor and expenses

Private company

o         a company whose Articles of Association restrict the transfer of its shares,limit its members to fifty and prohibit public advertisements for capital

Profit/volume ratio (P/V)

o         the rate at which profits change with a change in output

Provision

o         a charge against profit that provides for the reduction in value of an asset or a liability whose value is uncertain eg provision for depreciation,provision for doubtful debt

Public company

o         a company that is not a private company

• Glossary Of Accounting &Finance Terms-Alphabet D
• Glossary Of Accounting &Finance Terms-Alphabet N
• Glossary Of Accounting &Finance Terms-Alphabet H
• Glossary Of Accounting&Finance Terms-Alphabet B
• Glossary Of Accounting &Finance Terms-Alphabet R
• Glossary Of Accounting &Finance Terms-Alphabet S
• Glossary of Accounting &Finance Terms-Alphabet C