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International Accounting Standard, issued by the IASB's predecessor body.


International Accounting Standards Board, an independent body that sets accounting standards accepted as a basis for accounting in many countries, including all Member States of the European Union.

IASB System

The accounting standards and guidance issued by the IASB.


International FINANCIAL REPORTING Standard, issued by the IASB.


A reduction in the carrying value of an asset, beyond the expected depreciation, which must be reflected by reducing the amount recorded in the balance sheet.

Impairment Review

Testing assets for evidence of any impairment.

Impairment Test

Test that the business can expect to recover the carrying value of the intangible asset, through either using it or selling.


A change in, or addition to, a non-current (fixed) asset that extends its useful life or increases the expected future benefit. Contrast with repair which restores the existing useful life or existing expected future benefit.

Income Statement

Financial statement presenting revenues, expenses, and profit. Also called profit and loss account.

Incorporation, Date of.

The date on which a company comes into existence.

Indirect Method (of Operating Cash Flow)

Calculates operating cash flow by adjusting operating profit for non-cash items and for changes in working capital.

Insider Information

Information gained by someone inside, or close to, a listed company which could confer a financial advantage if used to buy or sell shares.

It is illegal for a person who is in possession of inside information to buy or sell shares on the basis of that information.

Institutional Investor

An organisation whose business includes regular investment in shares of companies, examples being an insurance company, a pension fund, a charity, an investment trust, a unit trust, a merchant bank.


Without shape or form, cannot be touched.

Interest (on Loans)

The percentage return on capital required by the lender (usually expressed as a percentage per annum).

Interim Reports

Financial statements issued in the period between annual reports, usually half-yearly or quarterly.

Internal Reporting

Reporting financial information to those users inside a business, at various levels of management, at a level of detail appropriate to the recipient.


Stocks of goods held for manufacture or for resale.

Investing Activities

The acquisition and disposal of long-term assets and other investments not included in cash equivalents.


Persons or organisations which have provided money to a business in exchange for a share of ownership.