Annual Report 2009/10 Excellence in Retailing - Douglas Holding

178 Further information
Overview
Glossary
Financial calendar/Credits
GLOSSARY
Actuarial gains/losses
Impact of changes in actuarial parameters when calculating pension
obligations.
Associated companies
Companies over which the investor has significant influence (interest
between twenty and fifty percent held) and is neither a subsidiary nor
an interest in a joint venture.
At-equity
Valuation of interests in associated companies with their prorated stockholders’
equity and profits for the year.
Available-for-sale securities
Securities which are neither held for trading, i.e. to generate shortterm
profits, nor held until a specific maturity.
CAPM (Capital Asset Pricing Model)
A capital market-oriented model used to calculate a company’s cost
of capital.
Cash Flow
An indicator used in the analysis of balance sheets to show a company’s
financial strength. The Cash Flow designates the changes to liquid
funds resulting from operational activities and other factors within
a given period.
Cash Flow hedge
Used to hedge against risks from Cash Flow fluctuations as a result of
changes in interest rates.
Cash Flow statement
Presentation of an organization’s liquidity during the course of a fiscal
year, reflecting the origins of funds and the effects of allocating
resources.
Cash-generating unit
Smallest unit of assets which generates cash flows in a company,
whereby these cash flows are mostly independent of cash flows for
other assets or groups of assets.
Cash-Management-System
Computer-aided system for the optimum management of funds in the
Group in respect to liquidity and profitability.
Comprehensive income
Comprehensive income is the change in equity, which comprises of
the profit and loss for the period in the income statement plus components
of earnings recognized directly to equity.
Consolidation
Aggregation of the financial statements from all the companies within
a Group to produce the consolidated financial statement.
Corporate Governance
Term used to denote responsible corporate management and controlling
that is aimed at generating sustained added value.
DBO (Defined Benefit Obligation)
Compulsory amount for the company resulting from a defined benefit
plan.
Defined contribution plan
Plan for the provision of payments after the end of the employment
relationship, in which the company pays defined contributions to an
independent pension fund, and itself has neither a legal nor a de facto
obligation to make payments over and above these amounts.
Derivative financial instruments
Financial products for which valuation is based on the performance of
the underlying instrument.
Dividend yield
Interest paid on the capital invested in shares; calculated by dividing
the dividend by the stock’s price at a specific date.
DVA (DOUGLAS Value Added)
DVA is a management control concept based on EVA® (-> EVA®) that
has been specially tailored to the DOUGLAS Group’s requirements.
EBIT
Earnings before Interest and Taxes.
EBIT margin
Ratio of EBIT to sales.
EBITDA
Earnings before Interest, Taxes, Depreciation and Amortization
EBITDA margin
Ratio of EDITDA to sales.
EBT
Earnings before taxes
EBT margin
Ratio of EBT to sales.
Endorsement process
When the IASB passes an accounting standard, it is subjected to a formal
recognition process by the EU. Standards that are recognized by
the EU Commission in this process can be used by companies preparing
their accounts using IFRS based on the EU directive.
Eurozone
The member states of European Union that have adopted the euro as
their currency. During the period under review, the Eurozone comprised
sixteen countries: Austria, Belgium, Cyprus, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, Malta, Portugal, Slovakia,
Slovenia, Spain and the Netherlands.
EVA® (Economic Value Added)
EVA® is a concept developed by the corporate consultants Stern Stewart
& Co. to promote value-oriented management control.