imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Financial reporting - balance sheet''.
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| Amounts in the balance sheet of a company representing the book value of the interests of the shareholders.
| | The amount by which current assets exceed current liabilities. |
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| It includes share capital, cumulative retained profits, and other reserves.
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| It is also known as 'total equity' or 'shareholders' funds'.
| | :<span style="color:#4B0082">'''''Treasurer's evolving role'''''</span> |
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| | :"The treasurer’s role has been evolving since the ACT was established in 1979, before which it wasn’t really considered as a separate profession. |
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| The book value of total equity is equal to the book value of the company's net assets.
| | :Increasingly treasurers are becoming managers of ‘net working capital’ rather than cash managers in the traditional sense." |
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| These two items in a balance sheet always balance - so long as there are no errors.
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| This is what is meant by a balance sheet "balancing".
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| 2. ''Financial reporting''.
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| Comparable amounts for financial reporting entities that are not companies.
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| 3. ''Capital investment.''
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| The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock or common equity) in a company.
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| 4. ''Securities.''
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| Securities representing the rights of the risk capital investors in 3. above.
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| For example, ordinary shares, also known as common stock.
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| 5. ''Banking and bank regulation''.
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| Abbreviation for common equity.
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| 6. ''Net asset value.''
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| The net value of an asset, after deducting any debt relating to it or secured on it.
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| For example, the value of a residential property, after deducting the amount of a mortgage borrowing secured on it.
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| If the value of the borrowing exceeds the value of the asset, the situation can be described as 'negative equity'.
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| :<span style="color:#4B0082">'''''Example: Equity and Negative equity'''''</span>
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| :A house is worth EUR 400k.
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| :A borrowing of EUR 300k is secured by a mortgage over the house.
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| :The net worth is the difference between the value of the the house (asset) EUR 400k and the borrowing (liability) EUR 300k
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| :400k - 300k = EUR 100k
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| :The Equity in the house is the difference between the current value, and any loans secured over it.
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| :This is also EUR 100k.
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| :If the value of the house falls to EUR 250k, the borrowing now exceeds the value of the asset.
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| :This is 'negative equity' (of EUR 50k = 250k - 300k). | |
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| 7. ''Law''.
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| A legal system that resolves disputes between persons by resort to principles of fairness and justness.
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| 8. ''Ethics - governance''.
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| Fair treatment between different individuals and different groups.
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| :<span style="color:#4B0082">'''''Equity & inclusion are priority for investors'''''</span>
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| :“Diversity, equity and inclusion is emerging as a priority topic for investors, with some of the world’s largest asset managers reporting increased engagement with portfolio companies in this area."
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| :''FitchRatings - November 2021.''
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| | :''The Group Treasurer - An ACT Guide to the first 100 days.'' |
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| == See also == | | == See also == |
| * [[An introduction to equity capital]]
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| * [[Asset manager]]
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| * [[Assets]] | | * [[Assets]] |
| * [[Balance sheet]]
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| * [[Blue chip]]
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| * [[Book value]]
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| * [[Capital]] | | * [[Capital]] |
| * [[Capital employed]] | | * [[Cash management]] |
| * [[Capital structure]]
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| * [[Common equity]]
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| * [[Common law]]
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| * [[Common stock]]
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| * [[Compound instrument]]
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| * [[Cost of equity]]
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| * [[Debt]]
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| * [[Debt for equity swap]]
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| * [[Debt to equity ratio]]
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| * [[Diversity]]
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| * [[Dividend]]
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| * [[Dividend growth model]]
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| * [[Entity]]
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| * [[Equality]]
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| *[[Equitable]]
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| * [[Equity accounting]]
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| * [[Equity beta]]
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| * [[Equity capital]]
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| * [[Equity cost of capital]]
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| * [[Equity instrument]]
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| * [[Equity investments]]
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| * [[Equity market]]
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| * [[Equity method]]
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| * [[Equity risk]]
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| * [[Equity risk premium]] (ERP)
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| * [[Equity structured deposit]]
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| * [[Equity swap]]
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| * [[Fitch]]
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| * [[Green equity]]
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| * [[Hybrid capital]]
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| * [[Inclusion]]
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| * [[Kay Review]]
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| * [[Liabilities]] | | * [[Liabilities]] |
| * [[Liabilities and equity]]
| | * [[Net working capital days]] |
| * [[Market/book ratio]]
| | * [[Treasury]] |
| * [[Member]]
| | * [[Working capital]] |
| * [[Mezzanine]]
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| * [[Mortgage]]
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| * [[Negative equity]]
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| * [[Net assets]] | |
| * [[Net worth]]
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| * [[Ordinary shares]]
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| * [[Own funds]]
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| * [[Private equity]]
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| * [[Quasi-equity]]
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| * [[Reporting entity]]
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| * [[Reserves]]
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| * [[Return on equity]]
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| * [[Risk]] | |
| * [[Share]] | |
| * [[Share capital]]
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| * [[Shareholder]]
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| * [[Shareholder value]]
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| * [[Shareholders’ funds]]
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| * [[Shareholders’ wealth]]
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| * [[Stakeholder]]
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| * [[Statement of changes in equity]]
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| * [[Statement of shareholders' equity]]
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| * [[Stock]]
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| * [[Total Loss Absorbing Capacity]]
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| * [[Total return swap]]
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| | [[Category:Financial_management]] |
| | [[Category:Knowledge_and_information_management]] |
| | [[Category:The_business_context]] |
| [[Category:Corporate_finance]] | | [[Category:Corporate_finance]] |
| [[Category:Compliance_and_audit]] | | [[Category:Cash_management]] |
| | [[Category:Liquidity_management]] |
