- L -
LeasingAcquiring the use of an asset through a rental agreement.
Legal FormRepresenting a transaction to reflect its legal status, which might not be the same as its economic form.
LeverageAlternative term for gearing, commonly used in the USA.
LiabilitiesObligations of an entity to transfer economic benefits as a result of past transactions or events.
Limited LiabilityA 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 CompanyCompany where the liability of the owners is limited to the amount of capital they have agreed to contribute.
LiquidityThe extent to which a business has access to cash or items which can readily be exchanged for cash.
Listed CompanyA 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 RequirementsRules imposed by the Stock Exchange on companies whose shares are listed for buying and selling.
Listing RulesIssued 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 CovenantsAgreement 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 NotesA method of borrowing from commercial institutions such as banks.
Loan StockLoan finance traded on a Stock Exchange.
Long-Term Finance, Long-Term LiabilitiesMoney 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.