Financial Information Glossary

Use our financial glossary of terms to help you look up any terms you may not understand when using our website.

The allocation of cost of intangible assets over time.

An independent individual qualified to examine and provide an opinion on a company’s financial and accounting records and supporting documents.

Balance sheet
A statement of the assets and liabilities of an organisation at a point in time (KCOM year end is 31 March).

Cash flow statement
A summary of the money received and spent by the business during the year.

Capital expenditure (capex)
Money spent to purchase new or upgrade existing physical assets such as equipment or property.


Current assets
Assets held by the business other than for long term use such as stocks, debtors and cash.

The allocation of cost of an asset - such as equipment or property - because of general wear and tear over time.

The income from a share investment that is given to shareholders out of a company’s retained earnings.

Earnings/(loss) per share
This figure is calculated by dividing profits or losses attributable to members of the Company by the number of shares in issue.

EBITDA (earnings before interest, tax, depreciation and amortisation)
A measure of profitability, favoured by companies undergoing major investment programmes. It shows the profits before interest, tax, depreciation and amortisation are deducted.

Exceptional items
Transactions included in a company’s income statement, which are outside the ordinary course of business such as profit or losses on the sale of an operation or costs of a fundamental reorganisation.

Financial Reporting Council (Formerly known as Turnbull report)
A report giving guidance to company directors on implementing Stock Exchange rules on internal controls and risk management.

The difference between what a company pays for another company and the fair value of the acquired assets of that company.

Income statement
A financial document showing the income, expenses and net profit or loss generated by an organisation over a given period of time.

Intangible assets
Items of value that cannot be physically touched, such as software, patents, licences or specific development costs.

Ownership interests held in other companies either for income or capital appreciation.

Ordinary shares
The principal type of shares bought by investors, and representing part ownership of a company.

Operating assets
Items of value owned by a company that contribute to the regular income from its operations.

Amounts payable to suppliers and other organisations providing services to the business.

Property, plant and equipment
A long-term asset held for business use such as property, network and exchange equipment.

Amounts which we have billed customers but not yet received.

Retained earnings
The final result for the year, after deducting tax, minority interests and dividends, which is then added (or taken away if it is a loss) to total equity at the end of the year.