- L -  


Leasing

Acquiring the use of an asset through a rental agreement.

Legal Form

Representing a transaction to reflect its legal status, which might not be the same as its economic form.

Leverage

Alternative term for gearing, commonly used in the USA.

Liabilities

Obligations of an entity to transfer economic benefits as a result of past transactions or events.

Limited Liability

A phrase used to indicate that those having liability in respect of some amount due may be able to invoke some agreed limit on that liability.

Limited Liability Company

Company where the liability of the owners is limited to the amount of capital they have agreed to contribute.

Liquidity

The extent to which a business has access to cash or items which can readily be exchanged for cash.

Listed Company

A company whose shares are listed by the Stock Exchange as being available for buying and selling under the rules and safeguards of the Exchange.

Listing Requirements

Rules imposed by the Stock Exchange on companies whose shares are listed for buying and selling.

Listing Rules

Issued by the UK Listing Authority of the Financial Services Authority to regulate companies listed on the UK Stock Exchange. Includes rules on accounting information in annual reports.

Loan Covenants

Agreement made by the company with a lender of long-term finance, protecting the loan by imposing conditions on the company, usually to restrict further borrowing.

Loan Notes

A method of borrowing from commercial institutions such as banks.

Loan Stock

Loan finance traded on a Stock Exchange.

Long-Term Finance, Long-Term Liabilities

Money lent to a business for a fixed period, giving that business a commitment to pay interest for the period specified and to repay the loan at the end of the period Also called non-current liabilities information in the financial statements should show the commercial substance of the situation.