BMAN 20081/20611 Financial Statement Analysis

Glossary of terms

US term UK/European term Description

10-Q Quarterly report Publicly available
document, usually
produced for the stock
market, containing
quarterly results
10-K Annual report Required document
produced yearly by a
company, including the
audited financial
statements
20-F No equivalent Required document that
has to be filed with the US
SEC (see below) if a
company is listed on the
US stock market as well as
in another country (e.g.
UK and US). It contains
the audited financial
statements
CEO (Chief Executive Chief Executive/Managing Director in overall charge
Officer) Director of running the company
CFO (Chief Financial Finance Director Director in charge of
Officer) company finances and
accounting
EBITDA EBITDA Earnings before interest,
tax, depreciation and
amortisation (a commonly
used non-GAAP income
measure)
FASB (Financial IASB (International Bodies responsible for
Accounting Standards Accounting Standards setting accounting
Board) Board)/ASB (UK standards and developing
Accounting Standards additional documents such
Board) as interpretations and
guidance
FIFO FIFO Inventory valuation
method – first in first out.
The closing inventory is
assumed to comprise the
most recently purchased
items
GAAP GAAP Generally accepted
accounting principles –
comprises accounting
standards, official
 interpretations and
industry practices
Interim report Interim/half-year report Publicly available
document, usually
produced for the stock
market, containing half-
year results
LIFO LIFO Inventory valuation
method – last in first out.
The closing inventory is
assumed to comprise the
oldest items. This method
is widely used in the US,
but is not permitted under
IFRS
MD&A (management’s Business review/OFR Narrative report about
discussion and analysis) (operating and financial company performance,
review)/management written from
commentary management’s perspective
and included in annual
report
SEC (Securities and FSA (Financial Services US and UK securities
Exchange Commission) Authority) (stock market) regulators
SFAS (Statement of IFRS, IAS (International Accounting standards
Financial Accounting Financial Reporting
Standards) Standard, International
Accounting Standard)
SG&A (selling, general Distribution costs Under US GAAP, selling
and administrative Administrative expenses and administrative
expense) expenses are combined,
whereas they are typically
separated under IFRS
Stock Share A share in the net assets of
a company (ordinary
shares or common stock)
or a share in the preference
share capital (preference
shares or preferred stock)