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RELATIVE CHANGE
is a value that is
properly related in size or degree or other measurable characteristics,
e.g. cost of goods enjoyed a relative change of 9% as compared to prior
period performance.
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RELEVANCE CONCEPT
refers to the capacity
of accounting information to make a difference to the external decision
makers who use financial reports.
-
RELEVANT
is having a bearing on or
connection with the subject at issue, e.g. relevant revenues from sales
of Model XXX.
-
RELEVANT COST
, in managerial accounting
decision-making situations, is any negative-implications phenomenon which
is consequent upon the production process, whether it is denominated in
money terms or not.
-
RELEVANT RANGE
is the range of activity
over which changes in cost are of interest to management
-
RELIABILITY CONCEPT
is a quality of
information that assures decision makers that the information represented
in the financial records and financial statements captures the actual
conditions and events of the reported entity.
-
REMITTANCE ADVICE
is a notice of payment
due, either in paper form or as a notice of an electronic data interchange
financial transaction.
-
REMITTING BANK
is a bank that sends a draft to
the overseas bank for collection.
-
REMUNERATION
is the act of paying for
goods or services or to recompense for losses (Example: Receiving remuneration
for work, i.e., a paycheck).
-
RENEWAL NOTE
is a note that renews
a previous note due date.
-
RENT EXPIRED
is based upon prepaid
rent and the amount of time that has elapsed that is covered under the
prepaid term of the rental.
-
REPLACEMENT COST
-
REPLACEMENT RESERVE FUND
, in real estate, is a fund
set aside for replacement of common property in a condominium, PUD, or
cooperative project; particularly that which has a short life expectancy,
such as carpeting and furniture.
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REPLACEMENT VALUE
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REPLACEMENT VALUE CONCEPT
, in insurance, is loss coverage
for assets at the cost required to purchase like assets at market value.
The replacement value concept eliminates the often troublesome factor
of used or depreciated value when claims for losses are adjusted.
-
REPO
is a contract under which the
seller of securities, such as Treasury Bills, agrees to buy them back
at a specified time and price. Also called repurchase agreement or buyback.
-
REPORTABLE CONDITION
is a matter coming
to the auditor’s attention relating to SIGNIFICANT DEFICIENCIES
in the design or operation of the entity's internal control that could
ADVERSLY AFFECT an entity’s ability to fulfill future obligations
with customers and/or the satisfaction of liabilities.
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REPORTABLE EVENT
see REPORTABLE CONDITION.
-
REPORTABLE SEGMENT
is a business segment
or geographical segment for which IAS 14 requires segment information
to be reported.
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REPORTED EARNINGS PER SHARE
is the
earnings per share after profit owed to preference shareholders or minority
interests is subtracted, i.e. it is the profit that actually belongs
to the ordinary shareholders.
-
REPORTING ENTITY
is the legal entity
for which financial reports are prepared and made available.
-
REPORTING PERIOD
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REPRESATIONAL FAITHFULNESS
in the FASB's Accounting Concept Statement #2 it is defined as "correspondence or agreement between a measure or description and the phenomenon that it purports to represent." In short, representations are verifiably as they are claimed, e.g. a map's representational faithfulness may be determined by how well the map describes the coastline.
-
REPRESENTATION EXPENSES
are those
expenditures whose character and primary purpose is for representational
or entertainment related activities, including receptions or banquets.
-
REPRODUCTION COST LESS DEPRECIATION (RCLD)
is
a technique for valuing electric distribution assets.
-
REQUIRED RATE OF RETURN
see HURDLE
RATE.
-
REQUISITION
is a written request to
buy something. Usually, once approved, the requisition is then transformed
into a purchase order.
-
RESEARCH & DEVELOPMENT (R&D)
is research as a planned activity aimed at discovery of new knowledge
with the hope of developing new or improved products and services. Development
is the translation of the research findings into a plan or design of new
or improved products and services.
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RESERVE
is an accounting entry that
properly reflects contingent liabilities.
-
RESERVE CAPITAL
is that part of the nominal (current
value) of a business that has not yet been called up. It is thus a reserve,
which can be drawn on in case of need.
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