Finance Terms:Alphabet E

[ A ] [ B ] [ C ] [ D ] [ E ] [ F ] [ G ] [ H ] [ I ] [ J ] [ K] [ L ] [ M ]

[ N ] [ O ] [ P ] [ Q ] [ R ] [ S] [ T ] [ U ] [ V ] [ W] [ X ] [ Y ] [ Z ]



[ E ]


Earnings per share

o the post-tax profits figures available for the ordinary shareholders divided by the number of shares


Earning yield

o this measure how much an investor could get at current earnings if he invested $100 in the company’s shares at their current price ie earnings per share divided by current market price.


Economic life

Either:
a. the period over which an asset is expected to be economically usable by one or more users; or
b. the number of production or similar units expected to be obtained from the asset by one or more users.

Equity

o The residual interest in the assets of the entity after deducting all its liabilities.

o Also refer to Net Worth



Events after the balance sheet date

o Those events favourable and unfavourable, that occur between the balance sheet date and the date when the financial statements are authorised for issue. Two types of events can be identified:
a. those that provide evidence of conditions that existed at the balance sheet date (adjusting events after the balance sheet date); and
b. those that are indicative of conditions that arose after the balance sheet date (non-adjusting events after the balance sheet date).


Exchange difference

o The difference resulting from translating a given number of units of one currency into another currency at different exchange rates.


Exchange rate

o The ratio of exchange for two currencies.



Expenses

o Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.