This directory covers a wide range of commonly used terms in business and finance. It includes abbreviations and definitions related to business and management, industry sectors, financial markets, legal frameworks, professional bodies and regulatory authorities.
See also our A to Z of accountancy abbreviations for organisations, qualifications, designations, standards and other abbreviations relevant to the accountancy profession.
Disclaimer
Every effort has been made to ensure the entries in this directory are correct. However, information may change and users should satisfy themselves that it is suitable for the purposes for which they wish to use it.
A
| AAPA - Association of Authorised Public Accountants. Subsidiary of the ACCA. As at the end of 2016, no longer a RSB. |
| AAT - Association of Accounting Technicians |
| ABC - Asset-Backed Contribution |
| ABL - Asset-Based Lending |
| ABS - Alternative Business Structure |
| ACAS - Advisory, Conciliation and Arbitration Service |
| ACCA - Association of Chartered Certified Accountants |
| ACD - Authorised Corporate Director (FSA) |
| ADPPA - American Data Privacy and Protection Act. US bill introduced in 2022 but which has not yet progressed further into law. |
| ADS - Additional Dwelling Supplement. It is charged if you buy an additional residential property (dwelling) in Scotland. |
| AEO - Authorised Economic Operator. Authorised Economic Operator status is an internationally recognised mark of quality that indicates a business’s role in the international supply chain is secure. |
| AEOI - Automatic Exchange of Information |
| AEP - Audit Enforcement Procedure |
| AEP - Audit Engagement Partner |
| AER - Annual Equivalent Rate |
| AFH - Academies Financial Handbook. Name change to Academies Trust Handbook (Education). |
| AFRA - Average Freight Rate Assessment |
| Aframax - Oil tanker smaller than 120,000 metric tons DWT (Shipping). |
| AHC - Asset Holding Company |
| AHTS - Anchor Handling Tug Supply (Shipping) |
| AIA - Association of International Accountants |
| AIA - Annual Investment Allowance (Tax) |
| AICPA - American Institute of Certified Public Accountants |
| AIFs - Alternative Investment Funds |
| AIFMs - Alternative Investment Fund Managers (also an EU directive) |
| AIFMD - Alternative Investment Fund Managers Directive |
| AIM - Alternative Investment Market |
| ALC - Admissions and Licensing Committee (ACCA term) |
| ALF - Access to Learning Fund (Education) |
| Altman Z score - Used to determine the likelihood of a business going bankrupt in the next two years. The method utilises various income and balance sheet figures to evaluate a company’s financial stability. |
| AMA - Advanced Measurement Approach |
| AML - Anti-Money Laundering |
| AMR - Actual Marketing Royalty |
| APA - Advance Pricing Agreement |
| APB - Auditing Practices Board. Formerly the Auditing Practices Committee. The Audit and Assurance Council replaced the APB in 2012 as part of reforms to the Financial Reporting Council (FRC). |
| APD - Air Passenger Duty (Tax) |
| APN - Accelerated Payment Notice (Tax) |
| APP scam - Authorised Push Payment scam. Where a fraudster tricks someone into transferring money to them, often pressuring their victim to act hastily. Such scams are in contrast to other types of fraud where accounts are accessed and money stolen without the account holder being aware. |
| APR - Agricultural Property Relief |
| APR - Annual Percentage Rate |
| APS - Actuarial Profession Standards |
| AQAR - Audit Quality Assurance Review |
| AQR - Audit Quality Review. Formerly the Audit Inspection Unit (AIU). |
| ARAC - Audit and Risk Assurance Committee |
| ARC - Audit Registration Committee |
| ARGA - Audit, Reporting and Governance Authority. Proposed new regulator to replace the Financial Reporting Council (FRC). |
| ARROW - Advanced Risk Responsive Operating Framework |
| ASA - Advanced Subscription Agreement. Where an investor agrees to pre-pay for shares in a company that will be issued at a later date, typically after a certain ‘trigger event’ occurs. |
| ASB - Accounting Standards Board. Formerly the Accounting Standards Committee. The Accounting Council replaced the ASB in 2012 as part of reforms to the Financial Reporting Council (FRC). |
| ASB - Auditing Standards Board. AICPA technical committee for auditing, attestation and quality control. |
| ASIC - Australian Securities and Investments Commission |
| ASP - Alternatively Secured Pensions fund |
| ASX - Australian Securities Exchange |
| ATAD - Anti-Tax Avoidance Directive. Often followed by number 1, 2, 3 |
| ATED - Annual Tax on Enveloped Dwellings |
| ATT - Association of Taxation Technicians |
| AUT - Authorised Unit Trust |
| AVC - Additional Voluntary Contributions |
| AVEC - Audio-Visual Expenditure Credit. Replaces the film, high-end TV, animation and children’s TV tax reliefs. Effective from 1 April 2024. |
| AWE - Average Weekly Earnings |
| AWPU - Age Weighted Pupil Unit. Funding measure (Education). |
| AWRS - Alcohol Wholesaler Registration Scheme |
B
| BACS - Bankers' Automated Clearing System. Electronic money transfer |
| BADR - Business Asset Disposal Relief, previously known as Entrepreneurs Relief |
| BASEL accords - Banking supervision accords. Recommendations on banking laws and regulations. |
| BBL - Bounce Back Loan. Enabled smaller businesses to access finance more quickly during the coronavirus outbreak. |
| BCBS - Basel Committee on Banking Supervision |
| BCC - British Chambers of Commerce |
| BCD - Banking Consolidation Directive (FSA) |
| BCOBS - Banking: Conduct of Business Sourcebook |
| Bear Market - A market in which prices fall over a sustained period. |
| BEIS - Department for Business, Energy and Industrial Strategy existed until 2023 when it was split to form the Department for Business and Trade (DBT), the Department for Energy Security and Net Zero (DESNZ) and the Department for Science, Innovation and Technology (DSIT). |
| Beneish M-score - Model developed by Professor Messod Beneish, designed to detect whether a company is manipulating its earnings. Beneish originally concluded that if a company had an M-score score greater than -2.22 then earning manipulation is likely, although he later changed the threshold to -1.78. |
| BEPS - Base Erosion and Profit Shifting (OECD tax) |
| Beta Value - A measure of risk that indicates how much a particular stock fluctuates compared to the movements of the market as a whole. A stock with a beta of 1.0 tends to move in line with the market. A beta greater than 1.0 suggests a stock has higher volatility than the market whereas a beta of less than 1.0 indicates lower volatility. See also Levered Beta and Unlevered Beta. |
| Big Four - The four largest audit firms in the UK (PwC, Deloitte, KPMG & EY). |
| BIMCO - Baltic & International Maritime Council (Shipping) |
| BIPRU - Prudential sourcebook for banks, building societies and investment firms (FSA handbooks) |
| Black-Scholes model - A mathematical model of financial derivative markets, also known as the Black-Scholes-Merton model. Widely used to calculate the theoretical price of European-style options. |
| Boiler room - An operation, often an outbound call centre, that uses high-pressure sales tactics to sell investments that are typically of questionable worth. |
| BPR - Business Property Relief |
| BPRA - Business Premises Renovation Allowance |
| BRICS - The BRICS is a group formed by eleven countries: Brasil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran. The objectives of BRICS include strengthening economic, political, and social cooperation among its members, as well as increasing the influence of Global South countries in international governance. |
| BSOCS - Building Societies Sourcebook (FSA) |
| BTL - Buy-To-Let |
| Bulk carrier or bulker - A type of ship designed specifically to transport large quantities of unpackaged bulk goods such as grains, coal and ore (Shipping). |
| Bull Market - A market in which prices rise or are expected to rise over a sustained period. |
| Butterfly Spread - An options trading strategy comprising both bull and bear spreads. It involves four options contracts with the same expiration date, either calls or puts or a combination of both, and three different strike prices. A limited risk and limited profit strategy, it is often used when minimal movement in the price of the underlying asset is expected. See also Call, Put and Condor spread. |
| BVACOP - Best Value Accounting Code Of Practice |
C
| C-Suite - Group of senior executives that run an organisation, whose job titles usually begin with a ‘C’ meaning ‘Chief.’ Its composition varies according to an organisation’s business model and operational needs. Common C-Suite titles include Chief Executive Officer, Chief Financial Officer, Chief Marketing Officer, Chief Human Resources Officer and Chief Operations Officer. |
| CAAT - Central Agent Authorisation Team (Tax) |
| CAATS - Computer Assisted Audit Techniques |
| CAC 40 - Cotation Assistée en Continu is a prominent index and tracks the performance of France’s largest stock exchange, Euronext Paris. |
| CAD - Capital Adequacy Directive (FSA) |
| CAET - Certified Accountants Educational Trust (ACCA term) |
| CAI - Chartered Accountants Ireland. Formerly known as Institute of Chartered Accountants in Ireland. |
| Call - The option to buy a stock or other asset at a certain price on or before a specified date. Also the redemption of a preferred stock or bond by the issuer before its maturity date. See also Put. |
| Capesize - are the largest type of bulk carriers, typically used to transport bulk cargo such as iron ore and coal. Ships too large to travel along Suez or Panama canals, hence they go around the Capes (Shipping). |
| CARD - Consolidated Admissions and Reporting Directive (FSA) |
| CARF - Crypto-Asset Reporting Framework. Standard developed by the OECD for the reporting and automatic exchange of information on cryptoassets between tax authorities worldwide. |
| CAS - Capital Adequacy Standard |
| CASCs - Community Amateur Sports Clubs |
| CASS - Client Assets Sourcebook (FSA) |
| CBAM - Carbon Border Adjustment Mechanism |
| CCAB - Consultative Committee of Accountancy Bodies |
| CCCTB - Common Consolidated Corporate Tax Base. Rules for companies operating in the EU. |
| CCL - Climate Change Levy |
| CCP - Central Clearing Counterparty, also referred to as a central counterparty, is a financial market infrastructure organization that takes on counterparty credit risk between parties to a transaction and provides clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts. CCPs are highly regulated institutions that specialize in managing counterparty credit risk. |
| CCR - Counterparty Credit Risk (FSA) |
| CCUS - Carbon Capture Usage and Storage |
| CDD - Client Due Diligence |
| CDSB - Climate Disclosure Standards Board. The organisation was consolidated into the IFRS Foundation on 31 January 2022. |
| CEA - Continuity of Education Allowance |
| CEC - Code of Ethics & Conduct (ACCA term) |
| CEE - Central and Eastern Europe |
| CEIC - Closed-Ended Investment Companies |
| CEO - Chief Executive Officer |
| CFC - Controlled Foreign Corporation |
| CFO - Chief Financial Officer |
| CFR - Consistent Financial Reporting (Education) |
| CGI - Chartered Governance Institute, previously the Institute of Chartered Secretaries and Administrators (ICSA) |
| CGT - Capital Gains Tax |
| CHAPS - Clearing House Automated Payment System |
| CHIEF - Customs Handling of Import & Export Freight (VAT tariff) |
| Chop stocks - Stocks purchased by brokers for pennies that are fraudulently sold to unsuspecting investors at heavily inflated prices. Typically involves micro-cap stocks in the US. Brokerages that engage in such practices are sometimes called chop shops or chop houses. |
| CHP - Combined Heat and Power |
| CIF - Condition Improvement Fund. Replaced the Academies' Capital Maintenance Fund |
| CII - Chartered Insurance Institute |
| CIM - Chartered Institute of Marketing |
| CIMA - Chartered Institute of Management Accountants |
| CIO - Charitable Incorporated Organisation |
| CIOT - Chartered Institute Of Taxation |
| CIP - Customs Information Paper |
| CIPFA - Chartered Institute of Public Finance and Accountancy |
| CIS - Construction Industry Scheme (Tax) |
| CIS - Commonwealth of Independent States. Regional intergovernmental organisation formed in 1991 by a number of former Soviet republics following the dissolution of the Soviet Union. |
| CIS - Collective Investment Scheme (FSA) |
| CIU - Collective Investment Undertaking (FSA) |
| CJEU - Court of Justice European Union (European Court of Justice, ECJ). |
| CIVETS - Columbia, Indonesia, Vietnam, Egypt, Turkey, South Africa. Acronym coined in 2009 for the group of emerging market countries. |
| CLM - Contract Lifecycle Management. The management of an organisation’s contracts. Includes development, negotiation, award and implementation through to monitoring and renewal or expiry. |
| CMA - Competition and Markets Authority. Formerly the Competition Commission. |
| CMAR - Client Money and Asset Return (FSA) |
| CMR - Clients' Money Regulations |
| CoACS - Co-ownership Authorised Contractual Schemes |
| COFA - Compliance Officers for Finance and Administration |
| CoG - Chair of Governors (Education) |
| COLP - Compliance Officers for Legal Practice |
| COMB - Contracted-Out Mixed Benefit Scheme (Pension schemes) |
| COMI - Centre Of Main Interest |
| COMP - Contracted-Out Money Purchase Scheme (Pension schemes) |
| Condor Spread - An options trading strategy consisting of four options, either calls or puts, with the same expiration date but different strike prices. A low risk and low profit strategy, it is typically used when the underlying asset's price is expected to remain within a specific range. There are two types of condor spreads. A long condor is designed to profit from low volatility and minimal movement in the underlying asset’s price, whereas a short condor profits from higher volatility and more significant price movements. Similar to a butterfly spread, but allows for a wider range of profitability. See also Call, Put and Butterfly spread. |
| COP9 - Code Of Practice 9. HMRC code for civil investigation of tax fraud. |
| CORSIA - Carbon Offsetting and Reduction Scheme for International Aviation |
| COSR - Contracted-Out Salary Related scheme (Pension schemes) |
| CPD - Continuing Professional Development |
| CPDO - Constant Proportion Debt Obligation notes |
| CPI - Consumer Price Index |
| CPS - Carbon Price Support or Carbon Floor Price |
| CRD - Capital Requirements Directive |
| CRE CLO - Commercial Real Estate Collateralized Loan Obligation |
| Credential stuffing - A type of cyber attack where stolen account details (usernames and passwords) from one breach are used to try and gain access to accounts on other platforms. |
| CRM - Customer Relationship Management |
| Crown Dependencies - A territory that is under the sovereignty of the British Crown but does not form part of the UK. |
| CRP - Country Risk Premium. The additional rate of return required by investors to compensate for the increased risk of investing in a foreign country due factors such as political or economic instability. The country risk premium is typically higher for developing countries. |
| CSDDD - Corporate Sustainability Due Diligence Directive. EU directive that sets obligations for large companies regarding actual and potential negative impacts on human rights and the environment. This is in relation to their own operations, those of subsidiaries and those carried out by business partners. |
| CSOP - Company Share Option Plans |
| CSRD - Corporate Sustainability Reporting Directive |
| CTA - Corporation Tax Act 2010 |
| CTA - Chartered Tax Advisor (Chartered Institute of Taxation) |
| CTD - Certificate Tax Deposit |
| CTF - Child Trust Fund |
| CTSA - Corporation Tax Self Assessment |
| CUSIP - Committee on Uniform Security Identification Procedures |
| CVA - Company Voluntary Arrangement |
D
| D&O - Directors and Officers (D&O) insurance. A type of liability insurance that covers a company’s directors and executives in the event legal action is taken against them. |
| DAC 6 - Sixth Directive on Administrative Cooperation. EU directive requiring intermediaries or taxpayers to notify national tax authorities of certain cross-border tax arrangements that could potentially be used to avoid taxation. The information is automatically exchanged with tax authorities in other EU member states. |
| DAX - Deutscher Aktien IndeX, formerly Deutscher Aktien-Index. The German stock exchange index. |
| DCF - Discounted Cash Flow |
| De minimis - Legal term meaning too small to be significant or to merit consideration. |
| Dead cat bounce - A temporary rise in a declining stock that is soon followed by a continued downward trend. Also known as a sucker’s rally. |
| DEBRA - Debt-equity Bias Reduction Allowance directive. Business taxation in Europe. |
| Decacorn - Term for a startup company that is valued at over $10 billion. |
| DeFi - Decentralised Finance |
| DfE - Department for Education (Education) |
| DIP - Department Improvement Plan (Education) |
| Discount factor - A factor used to calculate the present value of a company’s future cash flows. Used to calculate the net present value of future cash flows when assessing potential projects or investments. Also commonly used in the valuation of investments using discounted cash flow analysis. |
| Divisia Index - A measure of a country’s money supply that gives greater weight to components that are more likely to be used for making transactions. Named after the early 20th century French economist Francois Divisia. See also M0, M1, M2, M3 and M4. |
| DOTAS - Disclosure Of Tax Avoidance Schemes |
| Dow Jones - Dow Jones Industrial Index for the New York stock exchange |
| DPB - Designated Professional Body |
| DSG - Dedicated Schools Grant. Money that goes to LA for their schools from government (Education). |
| DTA - Double Tax Agreement |
| DTC - Double Taxation Convention |
| DTT - Domestic Top-up Tax |
| DTTP - Double Taxation Treaty Passport scheme |
| DVA - Debt Valuation Adjustment |
| DWT - DeadWeight Tonnage. The amount a ship can safely carry (Shipping). |
E
| EBIT - Earnings Before Interest and Tax |
| EBITDA - Earnings Before Interest, Tax, Depreciation and Amortisation. A measure of the company’s profitability. |
| EBRD - European Bank for Reconstruction and Development |
| EBT- Employee Benefits Trust |
| EBTF - European Business Tax Forum |
| ECA - European Court of Auditors |
| ECAs - Enhanced Capital Allowances |
| ECB - European Central Bank |
| ECCTA - Economic Crime and Corporate Transparency Act 2023 |
| ECL - Economic Crime Levy. Annual charge payable by organisations who are supervised under the Money Laundering Regulations (MLR) and whose UK revenue exceeds the annual threshold specified by the Government. |
| ECOFIN - Economic and Financial Affairs Council. Part of The EU councils. |
| ECHR - European Court of Human Rights |
| EEA - European Economic Area |
| EEIG - European Economic Interest Grouping |
| EFRAG - European Financial Reporting Advisory Group |
| EFRBS - Employer Financed Retirement Benefit Schemes |
| EFT - Exchange Traded Funds |
| EFTA - European Free Trade Association |
| EGF - European Globalisation Adjustment Fund |
| EGL - Electricity Generator Levy |
| EIB - European Investment Bank |
| EIG - Economic Interest Grouping |
| EIOPA - European Insurance and Occupational Pensions Authority |
| EIS - Enterprise Investment Scheme |
| EITF - Emerging Issues Task Force (US) |
| EITI - Extractive Industries Transparency Initiative |
| ELTIF - European Long Term Investment Funds |
| ELV - End of Life Vehicles directive (EU legislation) |
| EMAP - Exponential Moving Average Price |
| EMEA - Europe, Middle East and Africa region |
| EMCS - Excise Movement and Control System (Tax) |
| EMI - Enterprise Management Incentive |
| EMS - European Monetary System |
| EMTN - Euro Medium Term Note |
| Enterprise 2.0 - Enterprise social software. The use of social software within an enterprise to enhance collaboration and information sharing. Includes blogs, wikis and social media platforms. |
| EOT - Employee Ownership Trust |
| EOY - End Of Year |
| EPL - Energy (Oil and Gas) Profits Levy |
| EPOS - Electronic Point Of Sale |
| EQCR - Engagement Quality Control Review |
| Equity Risk Premium - The additional rate of return earned when investing in shares over a risk free rate. This compensates for the higher risks associated with equity investing. See also Risk free rate. |
| ERM - Enterprise Risk Management frameworks |
| ESC - Extra Statutory Concession |
| ESG - Environmental, Social and Governance |
| ESG - Education Services Grant |
| ESIM - Energy Security Investment Mechanism |
| ESMA - European Securities and Markets Authority |
| ESFA - Education Skills and Funding Agency. The organisation became part of the Department of Education in April 2025. |
| ETF - Exchange-Traded Funds |
| ETN - Exchange-Traded Notes |
| ETP - Exchange-Traded Products |
| ETR - Effective Tax Rate |
| Euribor - Euro Interbank Offered Rate |
F
| Fannie Mae - Federal National Mortgage Association. Government-sponsored enterprise, created in 1938, that helps provide liquidity, stability and affordability to the US mortgage market. It purchases mortgages from lenders and either holds them in its portfolio or packages the loans into mortgage-backed securities to be sold to investors as part of the secondary mortgage market. See also Freddie Mac and Ginnie Mae. |
| FASB - Financial Accounting Standards Board (US) |
| FATCA - Foreign Account Tax Compliance Act. US anti tax evasion legislation. |
| FATF - Financial Action Task Force |
| FCA - Financial Conduct Authority. Formerly Financial Services Authority (FSA) |
| FD - Finance Director |
| FEE - Fédération des Experts Comptables Européens |
| FGB - Full Governing Body. Local Authority school, not Academies (Education). |
| FHDDS - Fulfilment House Due Diligence Scheme |
| FHL - Furnished Holiday Lettings |
| FIC - Family Investment Company. A UK private company whose shareholders are members of the same family. They are set up to hold and manage investments for a family, often with a view to transferring wealth to future generations. FICs are governed by the Companies Act 2006. |
| FIFO - First In First Out |
| FIG - Foreign Income and Gains Regime. Provides qualifying individuals an exemption from UK taxation for their foreign income and gains for a certain period. Replaces the remittance basis of taxation for non-domiciled individuals from 6 April 2025. |
| FIT - Feed-In Tariffs |
| FLP - Family Limited Partnership. A limited partnership in the UK formed by members of the same family. They are set up to hold and manage assets on behalf of a family, often with a view to passing wealth down to future generations. FLPs come under the Limited Partnerships Act 1907. FLP is also a structure used in the US by families for managing assets or pooling money to start a business. |
| FOMC - Federal Open Market Committee (US) |
| FOTRA - Free of Tax to Residents Abroad. Refers to certain UK government securities that are free of tax to residents abroad. |
| FPS - Full Payment Submission |
| FRAB - Financial Reporting Advisory Board |
| FRAND - Fair, Reasonable And Non-Discriminatory. A term commonly used in the licensing of intellectual property, particularly patents essential for implementing technical standards in industries such as telecommunications. |
| FRC - Financial Reporting Council |
| FRED - Financial Reporting Exposure Draft |
| Freddie Mac - Federal Home Loan Mortgage Corporation (FHLMC). US government-sponsored enterprise set up in 1970 to further support the secondary mortgage market. Like Fannie Mae, it buys mortgages from lenders and either holds them in its portfolio or packages the loans into mortgage-backed securities to be sold to investors. This helps provide liquidity, stability and affordability to the US mortgage market. See also Fannie Mae and Ginnie Mae. |
| FRRP - Financial Reporting Review Panel |
| FRS - Financial Reporting Standard |
| FRSME - Financial Reporting Standard for Micro Entities |
| FSAVC - Free Standing Additional Voluntary Contribution |
| FSCS - Financial Services Compensation Scheme |
| FSMA - Financial Services and Markets Act 2000 |
| FSS - Formula Spending Share (Education) |
| FTA - Free Trade Agreement |
| FTCR - Foreign Tax Credit Relief |
| F-TEN - Financial Talent Executive Network (ICAEW programme) |
| FTSE - Financial Times Stock Exchange. London stock exchange index. |
| FTSE 100 - An index composed of the 100 largest companies listed on the London Stock Exchange. |
| FTSE 250 - An index containing the 101st to the 350th largest companies by market capitalisation on the London Stock exchange. |
| FTT - First-Tier Tribunal (Tax) |
| FTT - Financial Transaction Tax |
| FY - Financial Year of Fiscal Year |
| FYA - First-Year Allowances |
G
| G7 - Group of seven major economies: Canada, France, Germany, Italy, Japan, UK and USA. |
| GAAP - Generally Accepted Accounting Principles |
| GAAR - General Anti-Avoidance Rule (Tax) |
| GAAS - Generally Accepted Auditing Standards |
| GAG - General Annual Grant (Education) |
| GAYE - Give As You Earn |
| GB - Governing Body (Education) |
| GBER - General Block Exemption Regulation |
| GBSR - Governing Body Self Review (Education) |
| GDP - Gross Domestic Product |
| GDPR - General Data Protection Regulation |
| GIAA - Government Internal Audit Agency |
| GILTI- Global Intangible Low-Taxed Income. Income earned by foreign affiliates of US companies from intangible assets such as patents, trademarks, and copyrights. It is subject to a minimum tax to prevent US multinationals shifting such income to low-tax countries. |
| Gilts - UK government bonds. Issued by the government as a means to raise money, they usually pay a fixed level of interest with the capital paid back at the end of the agreed term. Also known as gilt edged securities. |
| Ginnie Mae - Government National Mortgage Association (GNMA). US government corporation, established in 1968, that works to make affordable mortgage finance possible for first time buyers, low to middle income families and certain other groups. It guarantees investors the timely payment of principal and interest on mortgage-backed securities that cover loans insured or guaranteed by government agencies. See also Fannie Mae and Freddie Mac. |
| GloBE - Global Anti-Base Erosion. Also covered by Pillar 2. |
| GMT - Global Minimum Tax. International tax initiative aimed at ensuring that large multinational corporations pay a minimum level of tax, regardless of where they operate. Designed to prevent profit shifting to low-tax jurisdictions and promote fairer global taxation. Part of OECD’s Pillar 2 framework. See also Pillar 2. |
| GPRs - Global Practising Regulations (ACCA term) |
| GPS - Gross Payment Status. Part of the Construction Industry Scheme. |
| Greeks - A set of variables used to evaluate risk in the options market. Greek symbols are used to represent different risks, the primary ones being delta, gamma, vega, rho, and theta. |
| Greenwashing - The act of making misleading or unsubstantiated claims as to the environmental soundness of a company’s products, services or processes. |
| GRI - Global Reporting Initiative |
| GRT - Gross Register Tonnage. Same as GWT (Shipping). |
| GVA - Gross Value Added. GVA measures the contribution to the economy of each individual producer, industry or sector in the United Kingdom. |
| GWROB - Gifts With Reservation of benefit |
| GWT - Gross Weight Tonnage. The total internal volume of the ship (Shipping). |
H
| Handymax - Bulk carrier between 35,000–50,000 metric tons (Shipping). |
| Handysize - Bulk carrier between 10,000–35,000 metric tons (Shipping). |
| Hang Seng - Hong Kong stock exchange index. |
| Hectocorns - Term for a startup company that is valued at over $100BN. |
| HICP - Harmonised Index of Consumer Prices. Official measure of consumer price inflation in the euro area and the EU. Provides comparable measures of inflation for the countries and country groups for which it is produced. |
| HMRC - HM Revenue and Customs |
| HNWI - High-Net-Worth Individual |
I
| IAASA - Irish Auditing & Accounting Supervisory Authority |
| IAASB - International Auditing and Assurance Standards Board. Previously the International Auditing Practices Committee. |
| IAB - Interim Academy Board (Education) |
| IAS - International Accounting Standard |
| IASB - International Accounting Standards Board. Previously the International Accounting Standards Committee. |
| IBRD - International Bank for Reconstruction and Development |
| ICAAP - Internal Capital Adequacy Assessment Process |
| ICAI - Institute of Chartered Accountants of Ireland. Now known as Chartered Accountants Ireland (CAI). |
| ICAS - Institute of Chartered Accountants of Scotland |
| ICTA - Income and Corporation Taxes Act 1988 |
| ICVCM - Integrity Council for the Voluntary Carbon Market |
| IDRP - Internal Dispute Resolution Procedure |
| IESBA - International Ethics Standards Board for Accountants |
| IFA - Independent Financial Adviser |
| IFAC - International Federation of Accountants |
| IFIAR - International Forum of Independent Audit Regulators |
| IFRS - International Financial Reporting Standards |
| IFS - Institute of Fiscal Studies |
| IHT - Inheritance Tax |
| IHTA - Inheritance Tax Act 1984 |
| IIR - Income Inclusion Rule |
| IIRC - The International Integrated Reporting Council. Ceased to exist as a separate entity to the IFRS in 2023 (see IRCC). |
| ILAAP - Individual Liquidity Adequacy Assessment Process |
| ILAS - Individual Liquidity Adequacy Standards |
| IMF - International Monetary Fund |
| Inter alia - Latin term meaning ‘among other things’. Commonly used in legal documents to signify the presence of additional items or points not explicitly stated. |
| IORP - Institutions for Occupational Retirement Provision (Pensions Directive) |
| IP - Intellectual Property |
| IPA - Insolvency Practitioners Association |
| IPSASB - International Public Sector Accounting Standards Board |
| IPDI - Immediate Post-Death interest |
| IPO - Initial Public Offering |
| IRCC - Integrated Reporting and Connectivity Council. An advisory body to the IFRS Foundation Trustees. |
| ISA - International Standard on Auditing |
| ISA - Individual Savings Account |
| ISIN - International Securities Identification Number |
| ISO - International Organization for Standardization. Organisation that is responsible for the creation and maintenance of international management standards. |
| ISQM - International Standard on Quality Management |
| ISSB - International Sustainability Standards Board |
| ITA 2007 - Income Tax Act 2007 |
| ITEPA 2003 - Income Tax (Earnings and Pensions) Act 2003 |
| ITSA - Income Tax Self-Assessment |
| ITTOIA 2005 - Income Tax (Trading and Other Income) Act 2005 |
| IVA - Individual Voluntary Arrangement |
| IVSC - International Valuation Standards Council |
| iXBRL - Inline Extensible Business Reporting Language |
J
| JCCC - Joint Customs Consultative Committee |
| JR - Judicial Review |
| JSE - Johannesburg Stock Exchange |
| JV - Joint Venture |
K
| K-Percent Rule - Proposal by economist Milton Friedman that central banks should increase the money supply by a fixed percentage annually. |
| KPI - Key Performance Indicator |
| KRA - Key Result Area |
| KRI - Key Result Indicator |
| KYC - Know Your Client |
L
| LA - Local Authority (Education) |
| LAAA - Local Audit and Accountability Act 2014 |
| LCE - Less Complex Entities. Used for US Audits. |
| LCR - Liquidity Coverage Ratio |
| LEP - Local Enterprise Partnerships. |
| Levered Beta - A beta that includes the effects of a company’s debt and equity. It reflects the total systematic risk of a company, consisting of both business risk and financial risk. Also commonly referred to as equity beta. See also Beta and Unlevered Beta. |
| LGB - Local Governing Body. Academy schools (Education). |
| LIFO - Last In First Out |
| LIFTs - Local Improvement Finance Trusts |
| Lightship/Lightweight - Weight of a ship without any fuel, crew, passengers, cargo, water or stores on board (Shipping). |
| LBTT - Land and Buildings Transaction Tax (Scottish tax law) |
| LSE - London Stock Exchange |
M
| M0, M1, M2, M3 and M4 - Series of money supply measures, also known as monetary aggregates, that refer to the total amount of money in an economy at a particular time. They usually range from M0, the narrowest measure covering the most liquid assets such as notes and coins in circulation, to broader measures that include less liquid assets such as bank deposits and certain financial instruments (M1, M2, M3 and M4). The particular measures used and their composition can vary by country. See also Divisia money supply index. |
| M&A - Mergers and Acquisition |
| MAD - Market Abuse Directive |
| MAP - Mutual Agreement Procedure |
| MARD - Mutual Assistance in the Recovery of Debt Directive |
| MBA - Master of Business Administration |
| MBI - Management Buy-In |
| MBO - Management Buyout |
| MDR - Mandatory Disclosure Rules. UK regulations requiring the disclosure of certain cross-border tax arrangements to HMRC. Information is exchanged with tax authorities in other jurisdictions to help identify offshore tax evasion. The MDR is based on the OECD’s Model Mandatory Disclosure Rules and replaced the EU-based DAC6 rules which the UK implemented prior to EU Exit. |
| MFG - Minimum Funding Guarantee (Education) |
| Mezzanine financing - A hybrid funding method combining elements of debt and equity, typically used by companies to raise capital for expansion. It allows lenders to convert to an equity interest if the company defaults, generally after venture capital companies and other senior lenders are paid. |
| MICEX - Moscow Interbank Currency Exchange. Merged with the Russian Trading System (RTS) in 2011 to form the Moscow exchange (MOEX). |
| MiFID II - Markets In Financial Instruments Directive |
| MINT - Mexico, Indonesia, Nigeria and Turkey. Acronym coined in the early 2010s for a group of emerging economies with significant growth potential. |
| MLI - Multilateral Instrument. Formally known as the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). |
| MLR - Money Laundering Regulations |
| MLRO - Money Laundering Reporting Officer |
| MMoU - Multilateral Memorandum Of Understanding |
| MNE - Multinational enterprises |
| MOD - Manufactured Overseas Dividends |
| MOEX - Moscow exchange |
| Monte Carlo option model - The application of Monte Carlo Methods to determine the value of an option that has multiple sources of uncertainty or complex features. Random sampling is used to simulate possible future price paths of an underlying asset from which the option’s fair value is estimated. |
| MOU - Memorandum Of Understanding |
| MOSS - Mini One Stop Shop |
| MPC - Monetary Policy Committee |
| MSG - Multi-Stakeholder Group |
| MTT - Multinational Top-up Tax |
| MVL - Members' Voluntary Liquidation |
N
| NAFTA - North American Free Trade Agreement |
| NAO - National Audit Office |
| NASDAQ - National Association of Securities Dealers Automated Quotations systems (US stock exchange) |
| NAV - Net Asset Value. Total value of a company or entity’s assets minus its liabilities. May be divided by the number of shares in issue to give the value per share. Commonly used in relation to mutual funds and exchange-traded funds (ETFs). |
| NBFI - Non-bank financial institution. See also Shadow bank. |
| NCIS - National Crime Intelligence Service. In 2006 it became part of the Serious Organised Crime Agency (SOCA). In 2013 SOCA was merged into the National Crime Agency (NCA). |
| NEC - New Employee Co-ordinator (HR) |
| NED - Non-Executive Director |
| NFPO - Not-For-Profit Organisation |
| NEST - National Employment Savings Trust |
| NETP - Non-Established Taxable Person (VAT tax term) |
| NFP - Not For Profit |
| NFRD - Non-Financial Reporting Directive |
| NFT - Non-Fungible Token. A unique digital asset, stored on a blockchain, that represents ownership of a specific item such as a piece of art, music or video. Unlike cryptocurrencies, NFTs cannot be exchanged on a one-to-one basis, i.e. not fungible. |
| NIC - National Insurance Contribution |
| Nikkei - Japanese stock exchange |
| NMR - Notional Marketing Royalty |
| NMW - National Minimum Wage |
| NOMAD - Nominated Adviser |
| Non-Dom - Non domiciliary |
| NoR - Number on Roll (Education) |
| NRCGT - Non-Resident Capital Gains Tax |
| NRT - Net Register Tonnage. Volume of cargo a ship can carry (Shipping). |
| NSFR - Net Stable Funding Ratio |
| NYSE - New York Stock Exchange |
O
| OAPEC - Organization of Arab Petroleum Exporting Countries |
| OBR - Office for Budget Responsibility |
| OCI - Other Comprehensive Income |
| OECD - Organisation for Economic Cooperation and Development |
| OEIC - Open Ended Investment Companies |
| OEPI - Other Entity of Public Interest. Entities which do not meet the definition of a Public Interest entity (PIE), but are nevertheless of significant public interest to stakeholders. |
| OFR - Operating and Financial Review |
| OFSI - Office of Financial Sanctions Implementation |
| ONS - Office for National Statistics |
| OPEC - Organization of the Petroleum Exporting Countries |
| OSCR - Scottish Charity Regulator |
| OTC - Over-the-Counter. The trading of securities between two parties outside of a formal stock exchange. |
| OTS - Office of Tax Simplification |
| OVDP - Offshore Voluntary Disclosure Program (US revenue program) |
| OWR - Overseas Workday Relief |
P
| P11D - Form used to report end-of-year expenses and benefits for employees (HMRC). |
| PAF - Permanent Audit File |
| Panamax - The maximum size of a ship that can travel through the Panama Canal (Shipping). |
| PAR - PIE Auditor Register |
| Pari passu - Latin term meaning ‘equal footing.’ It denotes that multiple parties to a financial contract or claim share the same priority, with none receiving preferential treatment. |
| PAYE - Pay As You Earn |
| PC - Practising Certificate. Members of ICAEW who engage in public practice need to hold an ICAEW practising certificate. |
| PCCV - Pre-connection carrying value |
| PCP - Personal Contract Purchase. Mainly used for purchase of a car or vehicle. |
| PCRT - Professional Conduct in Relation to Taxation |
| PDMR - Person Discharging Managerial Responsibilities |
| PDR - Performance Development Review |
| P/E - Price/Earnings ratio |
| PE - Permanent Establishment |
| PEP - Politically Exposed Person (Money Laundering) |
| PET - Potentially Exempt Transfer |
| PFI - Private Finance Initiative |
| PIBPT - Public Interest Business Protection Tax. Mainly aimed at the Energy Supply Business. |
| PIE - Public Interest Entity. Within the UK, PIEs are currently defined as entities with transferrable securities listed on a UK regulated market, credit institutions and insurance undertakings. |
| PIGS - Portugal, Italy, Greece, Spain. Acronym that gained popularity during the Eurozone crisis for the struggling and often indebted economies of Europe. |
| PII - Professional Indemnity Insurance. PII is compulsory for all ICAEW members who have a Practising Certificate (PC) and engage in public practice. |
| PIIGS - Portugal, Ireland, Italy, Greece, Spain. Acronym that gained popularity during the Eurozone crisis for the struggling and often indebted economies of Europe. |
| Pillar 2 - Pillar 2 Model Rules. Rules that aim to ensure large multinational enterprises pay a minimum level of tax in each jurisdiction where they operate. Part of the OECD/G20 inclusive framework on Base Erosion and Profit Shifting (BEPS). Also known as the Global Anti-Base Erosion (GloBE) Rules. |
| PILON - Payment In Lieu Of Notice |
| PIRC - Pensions and Investment Research Consultants |
| PISCES - Private Intermittent Securities and Capital Exchange System. UK Government initiative to create a new stock market framework for private company shares. It will enable stock markets to launch PISCES platforms, with share trading expected to commence in Autumn 2025. |
| PMA - Plant and Machinery Allowance |
| POAT - Pre-Owned Asset Tax |
| POB - Professional Oversight Board. Set up in 2004 as part of the Financial Reporting Council (FRC). In 2012 the POB’s responsibilities were transferred to the FRC itself. |
| PoC - Point-Of Consumption (Tax) |
| POCA 2002 - Proceeds Of Crime Act 2002 |
| PoEM - Place Of Effective Management |
| POTAS - Promoters of Tax Avoidance Schemes |
| PP&E - Property, Plant and Equipment |
| PPP - Private Public Partnerships |
| PPR - Principal Private Residence |
| PPT - Plastic Packaging Tax |
| PRA - Prudential Regulation Authority. Formerly Financial Services Authority (FSA), now controlled by the Bank of England. |
| PRAG - Pensions Research Accountants Group |
| PRBC - Pre-Return Banding Check |
| PRINCE2 - Project In Controlled Environments. A structured method for effective project management. |
| Principals - Partners or members of an LLP firm. |
| PSA - PAYE Settlement Agreement |
| PSAA - Public Sector Audit Appointments |
| PSC - People with Significant Control (Small Business Enterprise & Employment Act 2015 s81 and Sch 3) |
| PSV - Platform Supply Vessel (Shipping) |
| PTRS - Provisional Treaty Relief Scheme. Now replaced with Syndicated loan scheme. |
| PUSU - Put up or shut up. Requirement under the UK Takeover Code for an identified potential bidder to either announce a firm intention to make an offer within 28 days, or declare that it does not intend to make an offer, in which case it is usually prevented from making another bid for 6 months. |
| Put ('put option') - The option to sell a stock or other asset at a certain price on or before a specified date. See also Call |
| PVA - Postponed VAT accounting |
Q
| QAD - Quality Assurance Department |
| QAHC - Qualifying Asset Holding Company. See also AHC. |
| QAS - Quality Assurance Scheme |
| QCB - Qualifying Corporate Bond |
| QIP - Quarterly Instalment Payments |
| QNUPS - Qualifying Non-UK Pension Scheme |
| QROPS - Qualifying Recognised Overseas Pension Scheme |
| QRP - Qualifying Residual Profit |
| Quiet quitting- Refers to a worker who deliberately fulfils only the minimum requirements of their job description and who does not go above and beyond for their employer. |
R
S
| S&P 500 - Standard & Poor's 500. Rating service. |
| SAD - Single Administrative Document (VAT) |
| SAMLA 2018 - Sanctions and Anti-Money Laundering Act 2018 |
| SAS - Statement of Auditing Standard |
| SASB - Sustainability Accounting Standards Board |
| SATCAR - Statutory Auditor and Third Country Auditor Regulations 2016 |
| SAV - Share and assets valuation |
| SAYE - Save As You Earn |
| SBA - Structures and Building Allowance |
| SBEE - Small Business, Enterprise and Employment Act 2015 |
| SCF - Statement of Cash Flows (Audit) |
| SDLT - Stamp Duty Land Tax |
| Seagull option - A three-legged options trading strategy that uses a combination of call and put options in order to limit risk. |
| SEC - Securities and Exchange Commission (US) |
| SEDOL - Stock Exchange Daily Official List |
| SEIS - Seed Enterprise Investment Scheme |
| SERPS - State Earnings Related Pension Scheme |
| SFA - Structured Finance Arrangement |
| SFO - Serious Fraud Office |
| SGX - Singapore Stock Exchange |
| Shadow Bank - A financial intermediary that provides banking services but which operates outside of the traditional banking sector and is not subject to the same regulation. Examples include hedge funds, mortgage lenders and investment banks. Now commonly referred to as non-bank financial intermediation (NBFI) or market-based finance. |
| SI - Statutory Instrument |
| SIBOR - Singapore Interbank Offered Rate |
| SIC - Standing Interpretations Committee of the International Accounting Standards Board |
| SID - Senior Independent Director |
| SIP - Statements of Insolvency Practice |
| SIPP - Self-Invested Personal Pension |
| SLS - Syndicated Loan Scheme |
| SME - Small or Medium-sized Enterprise |
| SMP - Statutory Maternity Pay |
| Smurfing - A money laundering technique where a large sum of cash is split into smaller amounts and deposited into multiple bank accounts to avoid detection. |
| SPAC - Special Purpose Acquisition Company |
| SPP - Statutory Paternity Pay |
| SOCA - Serious Organised Crime Agency |
| SoCI - Statement of Comprehensive Income (FRS 102) |
| SOCIE - Statement of Changes In Equity (Audit) |
| SoFP - Statement of financial position. Replaced the balance sheet with the introduction of FRS 102, which was effective from 1 January 2015. |
| SOFR - Secured Overnight Financing Rate. An interest rate benchmark published by the Federal Reserve Bank of New York. It is a broad measure of the cost of borrowing cash overnight collateralised by US Treasury securities. |
| SOP - Statement Of Practice (Tax) |
| SORP - Statement Of Recommended Practice. Best accounting practice for specialised industries or sectors in the UK. |
| SORP - Start of Regular Production. Manufacturing term particularly used in the automotive sector. |
| SOSTAC - Situation, Objectives, Strategy, Tactics, Action and Control. Marketing planning system. |
| SOX - Sarbanes Oxley Act |
| SPIMM - Simplified Process for Internal Market Movements. Arrangements introduced under the Windsor Framework to streamline the direct movement of goods from Great Britain to Northern Ireland. Due to come into effect from 31 March 2025. |
| SRR - Special Resolution Regime |
| SRT - Statutory Residence Test |
| SSAP - Statement of Standard Accounting Practice |
| STIBOR - Stockholm Interbank Offered Rate. Swedish interbank lending rates. |
| Stock volatility - The degree of variation in the price of a stock over a given time. A stock whose price fluctuates dramatically over a short period is seen as highly volatile. A stock that maintains a relatively stable price is considered low volatility. |
| STRGL - Statement of Total Recognised Gains and Losses (Audit) |
| Suezmax - The largest size ship that can travel along the Suez Canal fully loaded (Shipping). |
| SWIFT - Society for Worldwide Interbank Financial Telecommunication. Banks business conduct organisation. |
| SWOT - Strengths, Weaknesses, Opportunities and Threats (SWOT analysis) |
| SYSC - Senior management arrangements, Systems and Controls |
T
| TAAR - Targeted Anti-Avoidance Rules |
| TAS - Technical Actuarial Standard |
| TCA - Third Country Auditor |
| TCF - Treating Customers Fairly. FSA retail regulatory agenda. |
| TCFD - Taskforce on Climate-related Financial Disclosures. Disbanded in October 2023. |
| TCGA - Taxation of Chargeable Gains Act 1992 |
| TCSP - Trust or Company Service Provider |
| TDSI - Tax Deduction Scheme for Interest |
| Term SOFR - Term SOFR is a forward looking-term rate based on SOFR. |
| TESSA - Tax-Exempt Special Savings Account. Replaced by ISAs from 1999. |
| TIEA - Tax Information Exchange Agreement |
| TIINs - Tax Information and Impact Notes |
| TIOPA - Taxation (International and Other Provisions) Act 2010 |
| TIPS - Treasury Inflation-Protected Securities (US) |
| TMA - Taxes Management Act 1970 |
| TMT - Technology, Media and Telecommunications |
| TNFD - Taskforce on Nature-related Financial Disclosures |
| Tobin Tax - A currency, share and financial transaction tax. |
| TOGC - Transfer of business as a going concern |
| TOMS - Tour Operators' Margin Scheme |
| TPR - The Pensions Regulator |
| TQM - Total Quality Management |
| TRI - Tax Residence Indicator |
| TSE - Tokyo Stock Exchange |
| TSI - Transitional Serial Interest |
| TTP - Time To Pay |
U
| UCITS - Undertakings for Collective Investment in Transferable Securities |
| UHNWI - Ultra-High-Net-Worth Individuals |
| UITF - Urgent Issues Task Force |
| ULCC - Ultra Large Crude Carrier (Shipping) |
| Unicorn - Term for a privately held startup company that is valued at more than $1BN. |
| Unlevered Beta - A beta that excludes the impact of a company’s debt. Also referred to as Asset Beta. See also Beta and Levered Beta. |
| UPE - Ultimate Parent Entity |
| USM - Unlisted Securities Market |
| USP - Unique Selling Point |
| UT - Upper Tribunal (Tax and Chancery Chamber) |
| UTPR - Undertaxed Profit Rule |
| UTR - Unique Taxpayer Reference |
| UUT - Unauthorised Unit Trusts |
V
| VABEO - Vertical Agreements Block Exemption Order |
| VAT - Value Added Tax |
| VCT - Venture Capital Trust |
| VIMBO - Vendor Initiated Management Buyout |
| VIAMBO - Vendor Initiated Assisted Management Buyout |
| VLCC - Very Large Crude Carriers (Shipping) |
| VOA - Valuation Office Agency |
| VRR - Vaccines Research Relief |
W
| WACC - Weighted Average Cost of Capital. A method for calculating a company’s financing costs. It represents the average cost a company incurs to fund its operations, taking into account the proportion of equity and debt financing across all sources. |
| WCOA - World Congress of Accountants |
| WDA - Writing Down Allowances |
| WIPO - World Intellectual Property Organization |
| WOFA - World Forum of Accountants |
| WTI - West Texas Intermediate (oil term) |
| WTO - World Trade Organization |
X
| XBRL - Extensible Business Reporting Language |
| XML - Extensible Markup Language |
Z
| Zombie fund - An investment fund that no longer makes new investments or actively generates returns. It continues to hold assets, which are often difficult to sell, and to collect management fees. Also refers to a with-profits life insurance fund that is closed to new business. |