Annual Report 10/11 - ACL Cables PLC

ACL Cables PLC Annual Report 2010/11Glossary of Financial TermsAccounting PoliciesThe specific principles, bases, conventions,rules and practices adopted by an enterprisein preparing and presenting FinancialStatements.AmortizationThe systematic allocation of the depreciableamount of an intangible asset over its usefullife.Basic Earnings Per ShareProfits attributable to ordinary shareholdersdivided by the weighted average number ofordinary shares in issue during the year.Corporate GovernanceThe process by which corporate entitiesare governed. It is concerned with theway in which power is exercised over themanagement and direction of the entity,the supervision of executive action andaccountability to owners and others.Current RatioCurrent assets divided by current liabilities. Ameasure of liquidity.Debt /EquityDebt as a percentage of total equity lessminority interest if any.BorrowingsAll interest bearing liabilities.Capital EmployedTotal equity, minority interest and interestbearing borrowings.Capital ReservesReserves identified for specific purposes andconsidered not available for distribution.Deferred TaxationThe tax effect of temporary differencesdeferred to/from another period, whichwould only qualify for inclusion on a taxreturn at a future date.Earnings Per Ordinary Share (EPS)Profits attributable to ordinary shareholdersdivided by the weighted average number ofordinary shares in issue during the year.Cash EquivalentsLiquid investments with original maturityperiod of three months or less.Effective Tax RateIncome tax expenses divided by profit fromordinary activities before tax.Contingent LiabilityA possible obligation that arises from pastevents and whose existence will be confirmedonly by the occurrence or non-occurrenceof one or more uncertain future events notwholly within control of the enterprise.EquityShareholders’ funds.DividendsDistribution of profits to holders of equityinvestment.Credit RatingAn evaluation of a corporate’s ability torepair its obligations or the likelihood of notdefaulting, carried out by an independentrating agency.Dividend CoverProfit attributable to ordinary shareholdersdivided by dividend. Measures the numberof times dividend is covered by distributableprofit.85