Vijay Shankar Sharma
Textbook finance, M&A, governance, strategy, and organisation terms. Not UNITE and not Layer 4. 147 terms. Textbook meanings only.
5 terms. Page 1 of 1.
accounting · intro
Also called: Generally Accepted Accounting Principles
Generally Accepted Accounting Principles, the standardised set of accounting rules and procedures used primarily in the United States to prepare and present financial statements, intended to ensure consistency and comparability across companies. It differs in various technical respects from the International Financial Reporting Standards used in many other countries.
governance · intermediate
A contractual provision guaranteeing a company's senior executives substantial financial benefits, such as severance pay or accelerated equity vesting, if their employment is terminated following a change of control, such as an acquisition. Golden parachutes are intended partly to reduce executives' personal incentive to resist a deal that would benefit shareholders.
ma · intermediate
An intangible asset recorded on an acquirer's balance sheet representing the amount paid for a target company in excess of the fair value of its identifiable net assets, reflecting factors such as brand reputation, customer relationships, and expected synergies. Goodwill must be periodically tested for impairment, and a write-down can signal that an acquisition has not performed as expected.
accounting · intermediate
A write-down recorded when a company determines that the goodwill on its balance sheet, typically created by a past acquisition, is worth less than its recorded value, often because the acquired business has underperformed expectations. A significant goodwill impairment is a common, publicly visible signal that a past acquisition has not delivered the value originally anticipated.
accounting · intro
Also called: gross profit margin
The percentage of revenue remaining after subtracting the direct cost of producing the goods or services sold, calculated as gross profit divided by revenue. It reflects the fundamental profitability of a company's core product or service before accounting for operating expenses such as marketing, administration, and research.