[ N ]

Net realisable value

o The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
o Net realisable value refers to the net amount that an entity expects to realise from the sale of inventory in the ordinary course of business. Fair value reflects the amount for which the same inventory could be exchanged between knowledgeable and willing buyers and sellers in the marketplace. The former is an entity-specific value; the latter is not. Net realisable value for inventories may not equal fair value less costs to sell.

Non-current asset

o An asset that does not meet the definition of a current asset.

Notes

o Notes contain information in addition to that presented in the balance sheet, income statement, statement of changes in equity and cash flow statement. Notes provide narrative descriptions or disaggregations of items disclosed in those statements and information about items that do not qualify for recognition in those statements.

Net assets

o the total of the fixed and current assets less the current liabilities of the business.

Net worth

o the “equity” of a business representing the total ordinary share capital made up of paid-up ordinary share capital and reserves owned by the ordinary shareholders.

[ M ]

Matching of costs with revenues

o         A process in which expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the earning of specific items of income. This process involves the simultaneous or combined recognition of revenues and expenses that result directly and jointly from the same transactions or other events. However, the application of the matching concept does not allow the recognition of items in the balance sheet which do not meet the definition of assets or liabilities.

Materiality

o         Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.

Marginal cost

o         the cost of producing one extra unit = variable cost

Marginal revenue

o         the revenue from one extra sale

Margin of safety

o         the excess of sales over the break-even volume.

Market value of a share

o         the market value has no meaning in Balance Sheet terms, merely representing the price which a share will realize if sold at any particular point in time

Memorandum of Association

o         the constitution of the company, enabling outsiders to assess its structure and powers

Minority interest

o         these represent the capital and built-up reserves of a group fo companies owed by shareholders outside the group.