Impairment: related pages

Adjusted EPS

EPS adjusted for non-cash or one-off items such as amortisation and exceptional costs to give a better indication of underlying trends.

Adjusted operating profit

Operating profit adjusted for non-cash or one-off items to give a better indication of underlying trends.

Amortisation

Amortisation is the equivalent of depreciation for intangible assets.

Book value

The value of assets as shown on the balance sheet.

Fair value

The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.

Goodwill

Goodwill arises when a company buys another business at a price greater than the book value.

Historical cost

An asset value based on the actual purchase cost, or the accounting principle that requires this.

Intangible assets

Assets that do not have a definite form. They include goodwill, patents, trademarks and capitalised development costs.

Trading profit

Operating profit adjusted by excluding certain items, in order to give a better view of the underlying results.