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Debenture: a written acknowledgement of a debt – a name used for loan financing taken up by a company.

Debtor: a person or organisation that owes money to the entity.

Deep Discount Bond: a loan issued at a relatively low price compared to its nominal value.

Default: failure to meet obligations as they fall due for payment.

Deferred Asset: an asset whose benefit is delayed beyond the period expected for a current asset, but which does not meet the definition of a fixed asset.

Deferred Income: revenue, such as a government grant, is received in advance of performing the related activity. The deferred income is held in the balance sheet as a type of liability until performance is achieved and is then released to the income statement.

Deferred Taxation: the obligation to pay tax is deferred (postponed) under tax law beyond the normal date of payment.

Depreciable Amount: cost of a non-current (fixed) asset minus residual value.

Depreciation: the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount is cost less residual value.

Derecognition: the act of removing an item from the financial statements because the item no longer satisfies the conditions for recognition.

Difference on Consolidation: difference between fair value of the payment for a subsidiary and the fair value of net assets acquired, more commonly called goodwill.

Direct Method (of Operating Cash Flow): presents cash inflows and cash outflows.

Directive: a document issued by the European Union requiring all Member States to adapt their national law to be consistent with the Directive.

Director(s): person(s) appointed by shareholders of a limited liability company to manage the affairs of the company.

Disclosed, Disclosure: an item which is reported in the notes to the accounts is said to be disclosed but not recognised.

Discount Received: a supplier of goods or services allows a business to deduct an amount called a discount, for prompt payment of an invoiced amount. The discount is often expressed a percentage of the invoiced amount.

Dividend: amount paid to a shareholder, usually in the form of cash, as a reward for investment in the company. The amount of dividend paid is proportionate to the number of shares held.

Dividend Cover: earnings per share divided by dividend per share.

Dividend Yield: dividend per share divided by current market price.

Doubtful Debts: amounts due from credit customers where there is concern that the customer may be unable to pay.

Drawings: cash taken for personal use, in sole trader or partnership business, treated as a reduction of ownership interest.