Refers to a period between the short and long term, with its specific duration varying depending on the context. For example, stock analysts typically consider it as 6 to 12 months, whereas bond analysts usually think of it as 3 to 10 years.
Intermediation refers to the activity performed by a bank, financial institution, broker or similar entity, acting as a go-between for two parties in a transaction. Intermediaries may accept some or all associated credit or commercial risks.
A manufacturing method where several different products are produced on the same production line, one after the other, to maximize productivity.
An internal audit is a self-conducted examination of an organization's operations, intended to evaluate and improve the effectiveness of internal controls, risk management, and governance processes.
An internal auditor is an employee who is responsible for providing independent and objective evaluations of the company's financial and operational business activities. They assess compliance with laws and regulations, ensure policies are effective, and help maintain organizational integrity.
The internal business-process perspective is a part of the balanced scorecard framework, focusing on the internal operations that enable companies to deliver value to customers and shareholders. This perspective examines the efficiency and effectiveness of internal processes and seeks to improve them continually.
An internal check is a set of company policies and procedures designed to safeguard property from theft and damage. This includes measures such as the use of locked fences to secure outdoor property.
Internal control encompasses measures that an organization implements to reduce opportunities for fraud or misfeasance. Examples include requiring multiple signatures on documents, enhancing security for stock handling, task division, maintaining control accounts, using special passwords, and handling computer files securely. It is crucial for internal audits to ensure the effectiveness of these controls to instill confidence in external auditors and management regarding the integrity of the organization’s operations.
An Internal Control Questionnaire (ICQ) is a structured set of queries used by auditors and management to evaluate the effectiveness of an organization's internal controls.
An Internal Control Questionnaire (ICQ) is a structured document used by auditors to evaluate the effectiveness of an organization's internal control system. By answering tailored questions, auditors can identify strengths and weaknesses within different operational cycles.
Internal control risk refers to the likelihood that internal controls within an organization will fail to prevent or detect financial reporting inaccuracies, leading to potential financial misstatements. It is a critical component auditors assess to ensure the accuracy and reliability of financial statements.
A comprehensive system of controls designed to facilitate orderly and efficient business operations, ensure adherence to management policies, safeguard assets, and maintain accurate and complete records.
Internal data refers to information, facts, and data available from within a company's information system. This data is crucial for various business operations but is generally not accessible by outside parties without the company's express permission.
Internal expansion involves the growth of a company's assets that is funded through internally generated cash or through methods such as internal financing, accretion, or appreciation.
Internal Failure Costs are expenses associated with defects that are detected before a product or service is delivered to the customer. They are part of the broader category known as the Cost of Quality.
Internal financing refers to funds generated from a company's normal operations, in contrast to external financing, which involves borrowings and new equity.
The Internal Rate of Return (IRR) is the annualized effective compounded return rate or rate of return that makes the net present value of all cash flows (both positive and negative) from a particular project equal to zero.
An interest rate that gives a net present value (NPV) of zero when applied to a projected cash flow of an asset, liability, or financial decision.
The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment by calculating the rate of return where the net present value (NPV) of cash flows equals zero.
The Internal Revenue Bulletin (IRB) is a weekly publication issued by the Internal Revenue Service (IRS) that summarizes various administrative rulings, procedures, and other IRS-related announcements and developments.
The Internal Revenue Code (IRC) is the comprehensive set of laws enacted by the United States Congress and enforced by the Internal Revenue Service (IRS) that defines the rules and regulations governing federal taxation.
A collection of tax laws that are enacted by the federal government of the United States to administer tax obligations on individuals, corporations, and other entities.
The Internal Revenue Code of 1986 (IRC) is a comprehensive statute passed by Congress that outlines the laws governing the taxation of income. It details how income is to be taxed, what may be deducted from taxable income, and the provisions for enforcement and interpretation.
The Internal Revenue Service (IRS) is an agency of the federal government responsible for the administration and collection of federal income taxes. As part of the Department of the Treasury, the IRS prints and distributes tax forms and audits tax returns.
The IRS is the United States federal government agency responsible for collecting taxes and administering the Internal Revenue Code. It ensures compliance with tax laws, investigates tax abuses, and prosecutes tax fraud.
The Internal Revenue Service (IRS) is the revenue service of the United States federal government responsible for collecting taxes and the administration of the Internal Revenue Code, the main body of federal statutory tax law.
Internal storage refers to the memory that is built into a computer system, enabling the storage and retrieval of data and applications required for the computer's operation.
Internally generated goodwill, also known as inherent or non-purchased goodwill, refers to the presumed value present in an existing business that has not been evidenced by a purchase transaction. According to Section 18 of the Financial Reporting Standard applicable in the UK and Republic of Ireland, and International Accounting Standard 38, such goodwill should not be recognized on the balance sheet.
The International Accounting Education Standards Board (IAESB) is dedicated to developing high-quality accounting education standards embraced by the global community.
The International Accounting Education Standards Board (IAESB) is an independent organization that aims to improve standards of education in accountancy and audit worldwide by setting guidelines and standards for both initial accreditation and continuing professional education.
International Accounting Standards (IAS) are issued by the International Accounting Standards Board (IASB) to standardize accounting principles and procedures across different countries to enhance comparability and transparency in financial statements.
A comprehensive guide to the International Accounting Standards (IAS) issued by the International Accounting Standards Committee (IASC) and maintained by the International Accounting Standards Board (IASB).
The London-based privately funded organization responsible for developing a single set of high-quality, understandable International Financial Reporting Standards (IFRS) for general-purpose financial statements.
An independent, privately funded organization responsible for developing and promoting international accounting standards to ensure high quality and comparable financial reporting globally.
The International Accounting Standards Committee (IASC) was an independent private-sector body that created and issued international accounting standards. Its purpose was to develop and promote international accounting standards through consensus-building. The IASC has since been replaced by the International Accounting Standards Board (IASB), under the International Financial Reporting Standards (IFRS) Foundation.
The International Accounting Standards Committee (IASC) was established in 1973 to set global accounting standards and was later superseded by the International Accounting Standards Board (IASB) in 2001.
The International Accounting Standards Committee Foundation (IASCF) was an independent, private-sector organization responsible for developing a single set of high-quality, understandable, and enforceable international financial reporting standards through its standard-setting body, the International Accounting Standards Board (IASB).
The International Association of Book-keepers (IAB) is a globally recognized institute offering bookkeeping and financial management qualifications.
The International Association of Book-keepers (IAB) is a professional association that offers qualifications and memberships for book-keepers and aims to standardize and enhance the professional practice of book-keeping and accounting worldwide.
An independent body under the International Federation of Accountants (IFAC) responsible for issuing International Standards on Auditing (ISAs), exposure drafts, and guidelines on auditing and related services.
The International Auditing Practices Committee (IAPC), now known as the International Auditing and Assurance Standards Board (IAASB), was responsible for establishing international standards for auditing, review, other assurance, and related services.
A key institution of the World Bank Group, the IBRD provides loans and financial services to middle-income and creditworthy low-income countries aimed at reducing poverty and promoting economic development.
An international financial institution that provides loans and financial assistance for development projects in middle-income and creditworthy low-income countries, commonly known as the World Bank.
Established by the Bretton Woods Conference of 1944, the IBRD helps finance post-war reconstruction and raise standards of living in developing countries through loans and loan guarantees. The IBRD is part of the World Bank Group and is owned by the governments of 189 countries.
An International Banking Facility (IBF) is a banking service that allows U.S. banks to offer international banking services without being subject to certain domestic regulations. This facilitates eurocurrency lending activities and provides advantages akin to offshore banking.
An international boycott country is one that may impose or encourage participation in economic boycotts or trade restrictions against other nations or entities, often for political or social reasons.
The International Capital Market Association (ICMA) promotes efficient capital markets, resulting in stable market conditions and global economic growth. It sets standards and provides extensive sectoral expertise to industry professionals.
The International Capital Market Association (ICMA) is a trade association and self-regulatory organization that serves European participants involved in international debt capital markets. This includes banks, exchanges, dealers and brokers, asset managers, and investors.
The International Ethics Standards Board for Accountants (IESBA) is an independent body that develops and issues ethical standards for accountants and auditors worldwide.
The IFAC is a global organization formed in 1977 to develop a high-quality, harmonized international accountancy profession. It collaborates with 175 member organizations in 130 countries and supports four independent standard-setting bodies.
The International Financial Reporting Interpretations Committee (IFRIC) assists the International Accounting Standards Board (IASB) by providing guidance on the application and interpretation of International Financial Reporting Standards (IFRS).
The IFRS for SMEs, issued by the International Accounting Standards Board in 2009, simplifies the core principles of full IFRS to suit smaller, non-listed companies.
International Financial Reporting Standards (IFRS) are a set of accounting rules that standardize how businesses report their financial outcomes globally, ensuring transparency, accountability, and efficiency in financial markets.
International Financial Reporting Standards (IFRS) are a set of international accounting standards issued by the International Accounting Standards Board (IASB) since 2001, aimed at creating consistent financial statements that are comparable across international boundaries.
International Financial Reporting Standards (IFRS) are a set of accounting standards developed and maintained by the International Accounting Standards Board (IASB). They aim to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
The IFRS-AC is a council of diverse experts who advise the IASB on setting global accounting standards, ensuring these standards are relevant and practical for financial statement users and preparers.
The IFRS Foundation oversees the activities of the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee, and aims to develop globally accepted financial reporting standards.
The International Integrated Reporting Council (IIRC) is a global coalition promoting integrated reporting, where financial and sustainability information are combined to reflect comprehensive value creation.
A global alliance promoting integrated reporting to showcase how organizations create value over time, combining financial and non-financial performance metrics.
International law governs the relations of nations with one another, arising principally from international agreements or customs. It includes both public and private law, regulating political relationships and enforcement of foreign rights respectively.
An international organization comprising 184 member countries, established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance-of-payments adjustment. The IMF, founded in 1945, is headquartered in Washington, D.C.
The International Monetary Fund (IMF) is an international organization established in 1944 to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
The International Monetary Market (IMM) is a division of the Chicago Mercantile Exchange that specializes in trading futures contracts on various financial instruments including U.S. Treasury bills, foreign currency, certificates of deposit, and Eurodollar deposits.
Established in 1983, the International Organization for Securities Commissions (IOSCO) is an influential body dedicated to setting international standards for the regulation of global securities and futures markets. Based in Madrid, IOSCO promotes the adoption of internationally-agreed accounting standards, facilitating multinational share offerings.
International Public Sector Accounting Standard (IPSAS) sets forth accounting principles specifically tailored to the public sector, ensuring reliable and transparent financial reporting globally.
An independent organization, operating under the auspices of the International Federation of Accountants (IFAC), that aims to enhance the quality and transparency of public sector financial reporting worldwide. The Board issues International Public Sector Accounting Standards (IPSAS) that place a particularly strong emphasis on the accruals concept.
An overview of the standards that provide the fundamental principles and essential procedures for auditing, issued by the International Auditing and Assurance Standards Board (IAASB).
An international union is a labor organization that consists of affiliated local unions from more than one country. These unions work collectively to advocate for workers' rights on an international scale.
The International Valuation Standards Council (IVSC) is an independent not-for-profit organization dedicated to the development of international standards for the valuation of assets, including both tangible and intangible assets.
The International Valuation Standards Council (IVSC) is an independent, non-profit organization that sets global standards for the valuation profession.
A global communications system consisting of millions of computer networks interconnected by modems, telephone cables, wireless networks, and satellite links. The Internet facilitates data transfer, remote database access, and email, with high-level services such as the World Wide Web allowing multimedia content display.
Internet Explorer is a popular web browser developed by Microsoft. It was one of the most widely used web browsers in the early 2000s until it was gradually phased out in favor of more modern browsers.
An Internet Service Provider (ISP) is a business that offers individuals and organizations access to the Internet, often in exchange for a subscription fee.
An Internet Service Provider (ISP) is a business or organization that offers users access to the Internet and related services.
An interpleader is an equitable action initiated by a debtor who seeks court intervention to determine to whom a particular debt is owed among multiple claimants, without making a claim on the disputed property themselves.
Estimating unknown quantities that lie between two of a series of known values. Interpolation is a statistical method often used in various fields including finance, science, and engineering.
An interpreter is either a person who translates spoken or signed language orally in different contexts or a computer program that executes a source code line by line.
Written questions about facts in a civil suit, submitted by one party to the other party or witnesses. These questions are asked under oath, and both the questions and sworn answers are used as evidence in the trial.
Interstate commerce encompasses business activities among inhabitants of different states, including the transportation of persons and property, navigation of public waters, and the purchase, sale, and exchange of commodities.
The Interstate Commerce Commission (ICC), established in 1887, was the first federal agency created in the United States to regulate railroads and later trucking, ensuring fair rates and eliminating discriminatory practices in interstate transportation.
The Interstate Commerce Commission (ICC) was an independent federal agency, established in 1887 and abolished in 1995, aimed at ensuring that public rates and services from carriers and transportation firms involved in interstate commerce were fair and reasonable.
A federal law, administered by the U.S. Department of Housing and Urban Development (HUD), which mandates specific disclosures and advertising procedures for the sale of land to purchasers in different states to protect consumers from fraud and abuse.
An interval scale is a level of measurement in which the difference between observations provides meaningful information. Unlike nominal and ordinal scales, interval scales provide exact differences between values but lack a true zero point.
Intervention in economics refers to government economic activity with the objective of influencing economic growth, controlling inflation, impacting the composition of the economy's output, and more.
An interview is a structured conversation between two or more people conducted with the aim of gathering information for purposes such as guidance, counseling, treatment, or employment.
Travel expenses paid to a prospective employee that are typically reimbursed by the employer.
Interviewer bias refers to the influences resulting from the personal prejudices of the individual conducting an interview. It is crucial in shaping the initial impression formed about a candidate.
A person who dies without having made a will. The estate, in these circumstances, is divided according to the rules of intestacy. The division depends on the personal circumstances of the deceased.
Intragroup transactions refer to business dealings, including sales, loans, and other financial activities, that occur between different divisions, subsidiaries, or entities within the same corporate group. These transactions need to be carefully managed and recorded to ensure accurate financial reporting and regulatory compliance.
An Intranet is a private network that is confined to a single organization, designed primarily to facilitate internal communication, collaboration, and document sharing.
Intrinsic value refers to both the inherent worth of a physical asset and the theoretical valuation of an asset derived from fundamental analysis.
A method of issuing new securities in which a broker or issuing house takes small quantities of a company's shares and issues them to clients at opportune moments. This method is also used by existing public companies that wish to issue additional shares.
Inure refers to something taking effect, serving to benefit someone, or vested in property rights. It indicates a situation where rights or benefits come into force or are legally binding.
In economics, invention refers to the development of entirely new technologies or methods of production, distinguishing it from innovation which focuses on improving existing technologies and methods.
Inventoriable costs refer to the costs that can be included in the valuation of stocks, work in progress, or inventories. These costs include both fixed and variable production costs up to the stage of production reached, but exclude selling and distribution costs.
Inventory includes the raw materials, work-in-progress, and finished goods that a company has on hand at any given time. Effective inventory management is crucial for maintaining liquidity and profitability.
Inventory accounting refers to the accounting records and systems used for the ordering, receipt, issuing, and valuation of materials bought by an organization for stock. It includes the recording of entries on bin cards and in the stock ledger as well as the procedures adopted to carry out effective stocktaking.
An inventory certificate is a management representation to an independent auditor regarding the inventory balance on hand. It typically details the method used in computing inventory quantity, pricing basis, and condition.
Inventory control, or stock control, is a control system designed to ensure adequate but not excessive levels of stock are maintained by an organization. It takes into account consumption levels, delivery lead times, reorder levels, and reorder quantities for each commodity.
Inventory financing is a type of short-term loan businesses use to purchase inventory. This is often necessary for small to mid-sized businesses to manage operational cash flow effectively.
