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Fair Value

The amount at which an asset or liability could be exchanged in an arm's-length transaction between a willing buyer and a willing seller.

Faithful Presentation

Qualitive characteristic, information represents what it purports to represent.

Financial Accounting

A term usually applied to external reporting by a business where that reporting is presented in financial terms.

Financial Adaptability

The ability of the company to respond to unexpected needs or opportunities.

Financial Gearing

Ratio of loan finance to equity capital and reserves.

Financial Information

Information which may be reported in money terms.

Financial Reporting

Standard Title of an accounting standard issued by the UK Accounting Standards Board as a definitive statement of best practice (issued from 1990 onwards – predecessor documents are Statements of Standard Accounting Practice, many of which remain valid).

Financial Risk

Exists where a company has loan finance, especially long-term loan finance where the company cannot relinquish its commitment. 

The risk relates to being unable to meet payments of interest or repayment of capital as they fall due.

Financial Statements

Documents presenting accounting information which is expected to have a useful purpose.

Financial Viability

The ability to survive on an ongoing basis.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.

Fixed Asset

An asset that is held by an enterprise for use in the production or supply of goods or services, for rental to others, or for administrative purposes on a continuing basis in the reporting entity's activities.

Fixed Assets

See non-current assets.

Fixed Assets Usage

Revenue divided by net book value of fixed assets.

Fixed Capital

Finance provided to support the acquisition of fixed assets.

Fixed Cost

One which is not affected by changes in the level of output over a defined period of time.

Floating Charge

Security taken by lender which floats over all the assets and crystallises over particular assets if the security is required.


Estimate of future performance and position based on stated assumptions and usually including a quantified amount.


A list of items which may appear in a financial statement, setting out the order in which they are to appear.

Forward Exchange Contract

An agreement to buy foreing currency at a fixed future date and at an agreed price.

Fully Paid

Shares on which the amount of share capital has been paid in full to the company.

Fund Manager

A person who manages a collection (portfolio) of investments, usually for an insurance company, a pension fund business or a professional fund management business which invests money on behalf of clients.