Non-controlling interest
Non-controlling interest (NCI) is the portion of equity in a subsidiary not attributable to the parent company.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Accounting and Finance Terms Explained
Explore accounting, finance, auditing, taxation, and economics terms explained in clear English. Each entry provides a definition, a detailed explanation, practical uses, and examples where available.
Use the search box below to find a term by its name, definition, application, or related financial concept.
Non-controlling Interest
Non-controlling interest (NCI) is the portion of equity in a subsidiary not attributable to the parent, presented within equity in consolidated statements.
Opennumerator
The numerator is the top number in a fraction or ratio and represents the portion being measured or compared.
OpenOpening balances
Opening balances are account balances at the beginning of a period, carried forward from the prior period’s closing balances.
Openoperating activities
Operating activities include the main revenue-generating activities of a business and are reported in the cash flow statement to show cash generated from core operations.
OpenOperating expenditure (OPEX)
Day-to-day expenses required for normal business operations.
Openother assets
Other Assets are long-term assets that do not fall under standard categories such as property, equipment, investments, or intangibles.
OpenOther comprehensive income
Other comprehensive income (OCI) includes income and expense items that are not recognized in profit or loss as required by IFRS (e.g., revaluation surplus, certain FVOCI changes).
OpenOther Comprehensive Income (OCI)
Other comprehensive income (OCI) includes income/expense items excluded from profit or loss by standards (e.g., revaluation gains, some FVOCI movements, translation differences), accumulating in equit...
OpenOutput tax
Output tax is the VAT charged by a business on its taxable supplies of goods or services and is payable to the tax authority.
OpenOutput VAT
Output VAT is collected on taxable sales and must be reported and remitted to the tax authority after offsetting recoverable input VAT.
OpenOutstanding Cheques
They create a timing difference between the book bank balance and the bank statement. In a reconciliation starting from the bank statement balance, outstanding cheques are deducted. A cheque tracked o...
OpenP & L
P&L is the Profit and Loss Statement that summarizes revenues, expenses, and results of operations over a specific period.
OpenP.O
PO (Purchase Order) is an official document issued by a buyer to a supplier authorizing the purchase of goods or services under specified terms.
OpenParent Company
A parent company is the entity that has control over one or more subsidiaries and therefore prepares consolidated financial statements (unless an exemption applies).
Openpartnership
A partnership is a business arrangement where two or more persons agree to share profits, losses, and management responsibilities.
Openpayable
Payables are obligations owed by a business to suppliers or creditors and are recognized even if the invoice has not yet been received.
Openpayback
Payback measures the time required to recover the initial cash investment from a project without considering the time value of money.
Openpayee
The payee is the person or entity entitled to receive payment as stated on a cheque or payment instrument.
OpenPCAOB
PCAOB is the regulatory body responsible for overseeing audits of public companies to protect investors and enhance audit quality.
OpenPDC Liquidation
For a received cheque, liquidation generally records confirmed collection and clears the relevant PDC receivable or clearing balance. For an issued cheque, it generally records the bank payment and cl...
OpenPerformance materiality
Performance materiality is a lower materiality threshold set by the auditor to reduce the probability that aggregate uncorrected misstatements exceed overall materiality.
OpenPerformance obligation
A performance obligation is a promise in a contract to transfer a distinct good or service to a customer.
Openperiod cost
Period Costs are expenses that are charged to the income statement in the period incurred and are not directly tied to production.
OpenPermanent establishment (PE)
A fixed place of business through which an enterprise operates.
OpenPetty Cash
Petty Cash is a small cash fund kept for minor, frequent expenses; it should be controlled through limits, vouchers, and periodic reconciliation to reduce misuse and support accurate expense recording...
OpenPetty Cash
Petty cash is a small, fixed fund kept on site to pay minor day-to-day expenses (e.g., taxi, stationery, small repairs). It is controlled using vouchers/receipts and periodic counts so that every cash...
Openpost balance sheet events
Post balance sheet events are significant events occurring after the reporting date that may require adjustment or disclosure in the financial statements.
OpenPost Date
Post Date refers to assigning a future date to a document or cheque, making it payable or effective only on that specified date.
OpenPost Dated Cheques - PDC
Post Dated Cheques (PDC) are cheques with a future date and are recorded separately until they become due.
Openposting
Posting is the process of transferring journal entries to the appropriate ledger accounts to update balances.
OpenPostretirement benefits
Postretirement benefits are benefits provided to employees after retirement (other than pensions), such as medical, dental, life insurance, and similar coverage.
OpenPostulate
A postulate is an assumption accepted as true to serve as a foundation for logical reasoning or for building a theory.
OpenPPE
PPE commonly refers to Property, Plant and Equipment—tangible long-term assets used in operations (also called fixed assets).
OpenPPI
PPI stands for Producer (or Product) Price Index, an index that measures changes in selling prices received by producers.
OpenPR
PR is an abbreviation that may mean Public Relations, Payroll, or Purchase Request, depending on the context.
OpenPredictive Analytics
Predictive analytics uses historical data and statistical models to forecast future financial and operational outcomes.
Openpreferred stock
Preferred stock is a class of shares that usually receives dividends before common shares and may have priority on liquidation.
Openprepaid expense
Prepaid expense is a current asset representing payments made in advance for benefits to be received in future periods.
OpenPrepaid Expense
Prepaid expenses are recorded as assets initially and then expensed over time as the benefits are consumed (e.g., prepaid rent or insurance).
OpenPrepaid Expenses
Prepaid expenses are payments made in advance for benefits to be received in the future, such as rent or insurance. They are recorded as assets until consumed.
Openpresent value
Present value is the current worth of future cash flows discounted at a given rate, reflecting the time value of money.
OpenPresentation currency
Presentation currency is the currency in which the financial statements are presented, which may differ from the functional currency.
OpenPresentation Currency
Presentation currency is the currency used to present the financial statements. It can differ from the functional currency, with translation applied where required.
Openprincipal
Principal is the original amount of a loan or debt, excluding interest.
Openprior period adjustment
A prior period adjustment corrects a material error from a previous period, often adjusted through opening retained earnings and restated comparatives when required.
OpenPrivate Placement
A private placement is the sale of securities directly to a limited group of investors without a public offering, subject to applicable regulations.
OpenProceeds
Proceeds are amounts received from a transaction (e.g., sale proceeds, loan proceeds, insurance proceeds), usually net of related fees or discounts.
OpenProcurement
Procurement is the process of sourcing, evaluating, purchasing, and managing goods or services from external suppliers.
OpenProduct Cost
Product cost is the cost of inventory (inventoriable cost) that becomes an expense as cost of goods sold when the product is sold.
Open