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Financial Terms | |
Restructuring Charges |
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Definition of Restructuring ChargesRestructuring ChargesCosts associated with restructuring activities, including the consolidation and/or relocation of operations or the disposition or abandonment of operations or productive assets.
Related Terms:restructuringProcess of changing the firm’s capital structure without changing its assets. Restructuring ChargeA special, nonrecurring charge taken in conjunction with a consolidation Special ChargesNonrecurring losses or expenses resulting from transactions or events which, charge-back systema system using transfer prices; see transfer Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. Fixed-charge coverage ratioA measure of a firm's ability to meet its fixed-charge obligations: the ratio of Fixed Charge Coverage RatioA measure of how well a company is able to meet its fixed ![]() Floating Chargecharge or assignment on a company's total assets as security for a loan on total assets without specifying specific assets. Noncash chargeA cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. Redemption chargeThe commission charged by a mutual fund when redeeming shares. For example, a 2% Sales chargeThe fee charged by a mutual fund when purchasing shares, usually payable as a commission to Special ChargesNonrecurring losses or expenses resulting from transactions or events which, Surrender ChargeExpense charges applied when the owner of a policy surrenders a policy for its cash value. 12B-1 feesThe percent of a mutual fund's assets used to defray marketing and distribution expenses. The 12b-1 fundsMutual funds that do not charge an upfront or back-end commission, but instead take out up to Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. ![]() Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. Activity-based costing (ABC)A cost allocation system that compiles costs and assigns actual cost systema valuation method that uses actual direct Allowance for bad debtsAn offset to the accounts receivable balance, against which annual returnThe fund return, for any 12-month period, including changes in unit value and the reinvestment of distributions, but not taking into account sales, redemption, distribution or other optional charges or income taxes payable by any unitholder that would reduce returns. Back officeBrokerage house clerical operations that support, but do not include, the trading of stocks and Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance CapitalizeIn Finance: to find the present value of a stream of cash flows. Cash flowIn investments, it represents earnings before depreciation , amortization and non-cash charges. ![]() Cash FlowIn investments, NET INCOME plus DEPRECIATION and other noncash charges. In this sense, it is synonymous with CASH EARNINGS. Investors focus on cash flow from operations because of their concern with a firm's ability to pay dividends. Clearing house / ClearinghouseAn adjunct to a futures exchange through which transactions executed its floor are settled by a CommissionThe fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s Performance Presentation Standards Implementation Contribution RateThe percentage tax charged by a state to an employer to Convertible DebentureAre debt instruments that are convertible into common or preferred shares, take secondary or no security against assets, have flexible terms of repayment and charge fixed or floating interest rates. Cost company arrangementArrangement whereby the shareholders of a project receive output free of Cost of DebtThe cost of debt (bonds, loans, etc.) that a company is charged for Cost of goods soldThe charge to expense of the direct materials, direct labor, and Coverage ratiosRatios used to test the adequacy of cash flows generated through earnings for purposes of Creative Acquisition AccountingThe allocation to expense of a greater portion of the price Custodial fees Feescharged by an institution that holds securities in safekeeping for an investor. Debt-service coverage ratioEarnings before interest and income taxes plus one-third rental charges, divided Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. differentiation strategya technique for avoiding competition by distinguishing a product or service from that of competitors through adding sufficient value (including quality and/or features) that customers are willing to pay Direct costingA costing methodology that only assigns direct labor and material costs Discount rateThe interest rate that the Federal Reserve charges a bank to borrow funds when a bank is Dividend reinvestment plan (DRP)Automatic reinvestment of shareholder dividends in more shares of a Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 dumpingselling products abroad at lower prices than those EBITEarnings before interest and taxes. The measure often is used to gauge coverage of fixed charges. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge Expensedcharged to an expense account, fully reducing reported profit of that year, as is appropriate for Federal funds rateThis is the interest rate that banks with excess reserves at a Federal Reserve district bank FeeA charge for services. Impairment LossA special, nonrecurring charge taken to write down an asset with an overstated Interac systemCanada's bank machine and electronic debit system. If you use your bank card at a bank machine which displays the Interac symbol (and that bank machine is not your bank's machine), you will be charged a fee. InterestA charge for the use of money supplied by a lender. Interest RateRate charged or paid for the use of money, normally expressed as a percentage Legal defeasanceThe deposit of cash and permitted securities, as specified in the bond indenture, into an Leverage ratiosMeasures of the relative contribution of stockholders and creditors, and of the firm's ability LIBORThe London Interbank Offered Rate; the rate of interest that major international banks in London Load fundA mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of loadsLoads are sales fees (or commissions) that are charged when you buy a mutual fund. Management feeAn investment advisory fee charged by the financial advisor to a fund based on the fund's Membershipor a seat on the exchange A limited number of exchange positions that enable the holder to Mutual fundMutual funds are pools of money that are managed by an investment company. They offer negotiated transfer pricean intracompany charge for goods Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share No load mutual fundAn open-end investment company, shares of which are sold without a sales charge. Normalizing methodThe practice of making a charge in the income account equivalent to the tax savings NSF (non-sufficient funds)This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds. operating leverageA relatively small percent increase or decrease in Participation FeeFee charged by a bank for taking part in providing a loan. Payroll StabilizationThis calculation is used by states to determine the unemployment Phone switchingIn mutual funds, the ability to transfer shares between funds in the same family by PLUS systemA bank machine network outside Canada, across the U.S. and internationally. Customers who use a bank machine with a 'PLUS' symbol may be charged a fee. Policy FeeAdministrative charge included in a Policy Premium. Pooling of interestsAn method for accounting for a business combination. When used, the expenses of the combination are charged against income at once, and the net predetermined overhead ratean estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate prime rateBenchmark interest rate charged by banks. Prime RateThe interest rate that is charged by the banks to their most credit worthy customers. prime rateThe rate of interest that Canadian financial institutions charge on Canadian dollar loans to certain customers. It is based on the rate established by the Bank of Canada. Typically, all financial institutions have the same prime rate. purchasing costthe quoted price of inventory minus any Refinancing (Credit Insurance)Extending the maturity date or increasing the amount of existing debt or both. Also, revising a payment schedule, usually to reduce the monthly payments and often to modify interest charges. Regulatory pricing riskRisk that arises when regulators restrict the premium rates that insurance companies Reserve RatioThis calculation is used by states to determine the unemployment contribution rate to charge employers. The ongoing balance of a firm’s unclaimed residual incomethe profit earned by a responsibility center that exceeds an amount "charged" for funds committed to that center Senior DebtAre debt instruments that provide financing, take primary security against either specific or all assets of the borrower, have fixed terms of repayment and charge fixed or floating interest rates. Soft dollarsThe value of research services that brokerage houses supply to investment managers "free of Special ItemsSignificant credits or charges resulting from transactions or events that, in the special order decisiona situation in which management must determine a sales price to charge for manufacturing or service jobs outside the company’s normal production/service market State Disability TaxA tax charged by selected states to maintain a disability insurance Subordinated DebtDebt instruments that provide financing for acquisitions, expansion and restructuring, take secondary security against assets, have fixed or flexible terms of repayment and charge fixed or floating interest rates. Times Interest Earned RatioA measure of how well a company is able to meet its interest transfer pricean internal charge established for the exchange Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |