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[ C ]
Capital
o Under a financial concept of capital, such as invested money or invested purchasing power, the net assets or equity of the entity. The financial concept of capital is adopted by most entities.
o Under a physical concept of capital, such as operating capability, the productive capacity of the entity based on, for example, units of output per day.
Capitalization
o Recognizing a cost as part of the cost of an asset.
Capital employed
o the total of the shareholders’ funds, loan capital and any other long-term sources of fund; generally, intangible and fictitious assets are excluded
Capital reserve
o a reserve that does not arise from retention of trading profits eg share premium, capital redemption reserve fund.
Cash Equivalents
o Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash flow
o retained profit plus depreciation
o Inflows and outflows of cash and cash equivalents
Circulating assets
o “current assets” the most liquid of assets that will be converted into cash within the short term eg stocks, debtors
Close company
o a company controlled by five or fewer shareholders
Collateral security
o any security offered in support of a debt
Consolidated financial statements
o The financial statements of a group presented as those of a single economic entity.
Consolidated Balance Sheet
o the Balance Sheet showing the financial state of affairs of a group of companies
Contingent liabilities
o a possible liability rather than one of a definite nature, shown as a note to the Balance Sheet, eg the contingent liability arising from a contract agreed but not yet executed.
Convertible loan stock
o loan stock that may be converted into ordinary shares at a predetermined time and price
Cost
o The amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction, or, when applicable, the amount attributed to that asset when initially recognized in accordance with the specific requirements of other FRSs, eg FRS 2 Share-based Payment.
Cost of inventories
o All costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition
Cost of purchase
o All of the purchase price, import duties and other taxes (other than those subsequently recoverable by the entity from the taxing authorities), and transport, handling and other costs directly attributable to the acquisition of the item. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.
Cost unit
o a cost unit of quantity of output or service.
Coupon
o the stated rate of interest on a loan security
Cumulative preference shares
o preference shares where any arrears of dividend are paid prior to other shareholders
Current Asset
o An asset which satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the entity’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within twelve months after the balance sheet date; or
it is cash or a cash equivalent (as defined in FRS 1072004 Cash Flow Statements) unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.
Current liability
o A liability that satisfies any of the following criteria:
a. it is expected to be settled in the entity’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within twelve months after the balance sheet date; or
d. the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.
o All other liabilities shall be classified as non-current.
Current ratio
o a measure of liquidity, ie current assets to current liabilities. A test of liquidity : 2 is a general norm.
Current taxation
o company corporation tax that is to be paid within the year
Current yield
o the dividend expressed as a percentage of the current price of the security
