Glossary of Financial Accounting - Glossario Contabilità Finanziaria

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Earnings for Ordinary Shareholders: profit after deducting interest charges and taxation and after deducting preference dividends (but before deducting extraordinary items).

Earnings per Share: calculated as earnings for ordinary shareholders divided by the number of shares which have been issued by the company.

Effective Interest Rate: the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.

Efficient Markets Hypothesis: share prices in a stick market react immediately to the announcement of new information.

Endorsed: international financial reporting standards approved for use in Member States of the European Union through a formal process of endorsement.

Endorsement: see endorsed.

Enterprise: a business activity or a commercial project.

Entity, Entities: something that exists independently, such as a business which exists independently of the owner.

Entry Price: the value of entering into acquisition of an asset or liability, usually replacement cost.

Equities Analyst: a person who investigates and writes reports on ordinary share investments in companies (usually for the benefit of investors in shares).

Equity: a description applied to the ordinary share capital of an entity.

Equity Accounting: reports in the balance sheet the parent or group's share of the investment in the share capital and reserves of an associated company.

Equity Interest: see ownership interest.

Equity Portfolio: a collection of equity shares.

Equity Shares: shares in a company which participate in sharing dividends and in sharing any surplus on winding up, after all liabilities have been met.

Eurobond Market: a market in which bonds are issued in the capital market of one country to a non-resident borrower from another country.

Exit Price: see exit value.

Exit Value: a method of valuing assets and liabilities based on selling prices, as an alternative to historical cost.

Expense: an expense is caused by a transaction or event arising during the ordinary activities of the business which causes a decrease in the ownership interest.

External Reporting: reporting financial information to those users with a valid claim to receive it, but who are not allowed access to the day-to-day records of the business.

External Users (of Financial Statements): users of financial statements who have a valid interest but are not permitted access to the day-to-day records of the company.