Glossary
I
77 terms
Identifiable
An asset is identifiable if it meets either of the following criteria: It is separable, that is, capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability, regardless of whether the entity intends to do so. It arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.
idle time
Idle time represents the time that a lender's employees are not actively involved in performing origination activities for specific loans. Idle time can be caused by many factors, including lack of work, delays in work flow, and equipment failure. Idle time can be measured through the establishment of standard costs, time studies, ratios of productive and nonproductive time, and other methods.
Used in 1 subtopic:310-20
if-converted method
A method of computing EPS data that assumes conversion of convertible securities at the beginning of the reporting period (or at time of issuance, if later).
Used in 1 subtopic:260-10
immediate bonus
A sales inducement that the insurance entity is obligated to credit to the contract holder's account as a result of signing the contract, thus increasing the account value at inception.
immediate family
See paragraph 942-210-S99-1, Regulation S-X Rule 9-03(7)(e)(4), for the definition of immediate family for the purpose of Regulation S-X Rule 9-03.
impaired claims
In determining which class of creditors' claims or stockholders' interests must approve the plan, it is first necessary to determine if the class is impaired. A class of creditors' claims or stockholders' interests under a plan is not impaired if the plan leaves unaltered the legal, equitable, and contractual right of a class, cures defaults that lead to acceleration of debt or equity interest, or pays in cash the full amount of the claim, or for equity interests, the greater of the fixed liquidation preference or redemption price.
Used in 1 subtopic:852-10
Impairment
Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.
implicit
A service period that is not explicitly stated in the terms of a share-based payment award but that may be inferred from an analysis of those terms and other facts and circumstances. For instance, if an award of share options vests upon the completion of a new product design and it is probable that the design will be completed in 18 months, the implicit service period is 18 months. See Derived Service Period, Explicit Service Period, and Requisite Service Period.
imputed interest rate
The interest rate that results from a process of approximation (or imputation) required when the present value of a note must be estimated because an established exchange price is not determinable and the note has no ready market.
Used in 1 subtopic:835-30
in force
Policies and contracts written and recorded on the books of an insurance carrier that are unexpired as of a given date.
In Substance Nonfinancial Asset
Paragraphs 610-20-15-5610-20-15-6610-20-15-7610-20-15-8 define an in substance nonfinancial asset.
in-force policies
Policies effective before a specified date that have not yet expired or been cancelled.
Used in 1 subtopic:405-30
in-substance common stock
An investment in an entity that has risk and reward characteristics that are substantially similar to that entity's common stock.
Used in 1 subtopic:323-10
in-substance defeasance
Placement by the debtor of amounts equal to the principal, interest, and prepayment penalties related to a debt instrument in an irrevocable trust established for the benefit of the creditor.
Used in 1 subtopic:470-50
Inactive Employees
Employees who are not currently rendering service to the employer and who have not been terminated. They include those who have been laid off and those on disability leave, regardless of whether they are expected to return to active status.
incidental operations
Revenue-producing activities engaged in during the holding or development period to reduce the cost of developing the property for its intended use, as distinguished from activities designed to generate a profit or a return from the use of the property.
Income Approach
Valuation approaches that convert future amounts (for example, cash flows or income and expenses) to a single current (that is, discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts.
Used in 1 subtopic:820-10
income available to common stockholders
Income (or loss) from continuing operations or net income (or net loss) adjusted for preferred stock dividends.
Used in 1 subtopic:260-10
Income from Continuing Operations
Income after applicable income taxes but excluding the results of discontinued operations, the cumulative effect of accounting changes, translation adjustments, purchasing power gains and losses on monetary items, and increases and decreases in the current cost or lower recoverable amount of nonmonetary assets and liabilities.
Used in 1 subtopic:255-10
income tax expense (or benefit)
The sum of current tax expense (or benefit) and deferred tax expense (or benefit).
Income Taxes
Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.
Used in 18 subtopics:220-40270-740350-10405-20605-958718-740+6 more
income-producing real estate
Properties that meet all of the following criteria: Cash flows can be directly associated with a long-term leasing agreement with unaffiliated parties. The property is being operated. (It is not in a construction phase.) Future cash flows from the property are reasonably estimable. Ancillary services are not a significant part of the lease agreement. Hotels, which have occupancy rates and related cash flows that may fluctuate to a relatively large extent, do not meet the criteria for income-producing real estate.
Used in 1 subtopic:255-10
Incremental Borrowing Rate
The rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.
Incremental Costs from Incidental Operations
Costs that would not be incurred except in relation to the conduct of incidental operations. Interest, taxes, insurance, security, and similar costs that would be incurred during the development of a real estate project regardless of whether incidental operations were conducted are not incremental costs.
Incremental Direct Cost of Contract Acquisition
A cost to acquire an insurance contract that has both of the following characteristics: It results directly from and is essential to the contract transaction(s). It would not have been incurred by the insurance entity had the contract transaction(s) not occurred.
Used in 1 subtopic:944-30
incremental direct costs
Costs to originate a loan that have both of the following characteristics: Result directly from and are essential to the lending transaction Would not have been incurred by the lender had that lending transaction not occurred.
Used in 1 subtopic:310-20
Incremental Revenue from Incidental Operations
Revenues that would not be produced except in relation to the conduct of incidental operations.
incurred but not reported
Losses incurred by the insured entity that have not yet been reported to the insurance entity.
Used in 1 subtopic:720-20
incurred claims cost
The cost of providing the postretirement health care benefits covered by the plan to a plan participant, after adjusting for reimbursements from Medicare and other providers of health care benefits and for deductibles, coinsurance provisions, and other specific claims costs borne by the retiree. See Net Incurred Claims Cost (By Age).
Used in 1 subtopic:715-60
incurred cost
A cost arising from cash paid out or obligation to pay for an acquired asset or service, a loss from any cause that has been sustained and has been or must be paid for.
incurred losses
Losses paid or unpaid for which the entity has become liable during a period.
Used in 1 subtopic:405-30
incurred-but-not-reported claims
Claims relating to insured events that have occurred but have not yet been reported to the insurer or reinsurer as of the date of the financial statements.
Used in 1 subtopic:944-40
indirect effects of a change in accounting principle
Any changes to current or future cash flows of an entity that result from making a change in accounting principle that is applied retrospectively. An example of an indirect effect is a change in a nondiscretionary profit sharing or royalty payment that is based on a reported amount such as revenue or net income.
Used in 1 subtopic:250-10
Indirect Guarantee of Indebtedness
An agreement that obligates the guarantor to transfer funds to a debtor upon the occurrence of specified events, under conditions whereby: After funds are transferred from the guarantor to the debtor, the funds become legally available to creditors through their claims against the debtor Those creditors may enforce the debtor's claims against the guarantor under the agreement. In contrast, with a direct guarantee of indebtedness, if the debtor defaults, the creditor has a direct claim on the guarantor. Examples of indirect guarantees include agreements to advance funds if a debtor's net income, coverage of fixed charges, or working capital falls below a specified minimum.
Used in 1 subtopic:460-10
indirect loan
An indirect loan is a loan made by the employer to the employee stock ownership plan, with a related outside loan to the employer.
Used in 1 subtopic:718-40
Indirect project costs
Costs incurred after the acquisition of the property, such as construction administration (for example, the costs associated with a field office at a project site and the administrative personnel that staff the office), legal fees, and various office costs, that clearly relate to projects under development or construction. Examples of office costs that may be considered indirect project costs are cost accounting, design, and other departments providing services that are clearly related to real estate projects.
Used in 1 subtopic:360-970
Infrequency of Occurrence
The underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates (see paragraph 220-20-60-1).
Inherent Contribution
A contribution that results if an entity voluntarily transfers assets (or net assets) or performs services for another entity in exchange for either no assets or for assets of substantially lower value and unstated rights or privileges of a commensurate value are not involved.
Used in 6 subtopics:220-954220-958230-10350-60805-954805-958
Initial Direct Costs
Incremental costs of a lease that would not have been incurred if the lease had not been obtained.
initiation or front-end fees
Amounts that are assessed against the policyholder balance as consideration for origination of the contract.
Used in 1 subtopic:605-944
Inputs
The assumptions that market participants would use when pricing the asset or liability, including assumptions about risk, such as the following: The risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) The risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable.
Used in 1 subtopic:820-10
insurance contracts
A contract in which an insurance entity unconditionally undertakes a legal obligation to provide specified benefits to specific individuals in return for a fixed consideration or premium. An insurance contract is irrevocable and involves the transfer of significant risk from the employer (or the plan) to the insurance entity.
Used in 1 subtopic:715-60
insurance policy
The legal agreement between the policyholder and the insurance entity that states the terms of the arrangement. The term insurance policy includes all riders, attachments, side agreements, and other related documents that are either directly or indirectly part of the contractual arrangement. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)
Used in 1 subtopic:325-30
insurance risk
The risk arising from uncertainties about both underwriting risk and timing risk. Actual or imputed investment returns are not an element of insurance risk. Insurance risk is fortuitous; the possibility of adverse events occurring is outside the control of the insured.
intangible asset class
A group of intangible assets that are similar, either by their nature or by their use in the operations of an entity.
Intangible Assets
Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)
Used in 10 subtopics:220-40350-10350-20350-30350-60610-20+4 more
Integral Equipment
Integral equipment is any physical structure or equipment attached to the real estate that cannot be removed and used separately without incurring significant cost.
Used in 1 subtopic:978-10
integrated contract features
A contract feature in which the benefits provided by the feature can be determined only in conjunction with the base contract.
Used in 1 subtopic:944-30
intended use
Intended use of an asset embraces both readiness for use and readiness for sale, depending on the purpose of acquisition.
Used in 1 subtopic:835-20
Interest cost
The amount recognized in a period determined as the increase in the projected benefit obligation due to the passage of time.
Used in 1 subtopic:715-30
Interest cost
The increase in the accumulated postretirement benefit obligation to recognize the effects of the passage of time.
Used in 1 subtopic:715-60
Interest Cost
Interest cost includes interest recognized on obligations having explicit interest rates, interest imputed on certain types of payables in accordance with Subtopic 835-30, and interest related to a finance lease determined in accordance with Topic 842. With respect to obligations having explicit interest rates, interest cost includes amounts resulting from periodic amortization of discount or premium and issue costs on debt.
Used in 1 subtopic:835-20
interest method
The method used to arrive at a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period.
Interest Rate Risk
For recognized variable-rate financial instruments and forecasted issuances or purchases of variable-rate financial instruments, interest rate risk is the risk of changes in the hedged item's cash flows attributable to changes in the contractually specified interest rate in the agreement. For recognized fixed-rate financial instruments, interest rate risk is the risk of changes in the hedged item's fair value attributable to changes in the designated benchmark interest rate. For forecasted issuances or purchases of fixed-rate financial instruments, interest rate risk is the risk of changes in the hedged item's cash flows attributable to changes in the designated benchmark interest rate.
interest-only strips
A contractual right to receive some or all of the interest due on a bond, mortgage loan, collateralized mortgage obligation, or other interest-bearing financial asset.
intermediary
Although in general usage the term intermediary encompasses a broad range of situations in which an entity acts between two or more other parties, in this usage, it refers to situations in which a recipient entity acts as a facilitator for the transfer of assets between a potential donor and a potential beneficiary (donee) but is neither an agent or trustee nor a donee and donor.
intermediate-life plants
Intermediate-life plants have growth and production cycles of more than one year but less than those of trees and vines.
internal derivative
A foreign currency derivative instrument that has been entered into with another member of a consolidated group (such as a treasury center).
internal replacement
A modification in product benefits, features, rights, or coverages that occurs by a contract exchange; by amendment, endorsement, or rider to a contract; or by the election of a benefit, feature, right, or coverage within the contract.
Used in 1 subtopic:944-30
internal reserve method
A method for making payments to investors for collections of principal and interest on mortgage loans by issuers of Government National Mortgage Association (GNMA) securities. An issuer electing the internal reserve method is required to deposit in a custodial account an amount equal to one month's interest on the mortgage loans that collateralize the GNMA security issued.
Used in 1 subtopic:340-948
interval
The specific period (generally, a specific week) during the year that a time-sharing unit is specified by agreement to be available for occupancy by a particular customer. Also denoted Time-Sharing Interest or Time-Share.
Intra-entity derivatives
A derivative instrument contract between two members of a consolidated group.
Used in 1 subtopic:815-20
intrinsic value
The amount by which the fair value of the underlying stock exceeds the exercise price of an option. For example, an option with an exercise price of $20 on a stock whose current market price is $25 has an intrinsic value of $5. (A nonvested share may be described as an option on that share with an exercise price of zero. Thus, the fair value of a share is the same as the intrinsic value of such an option on that share.)
Inventory
The aggregate of those items of tangible personal property that have any of the following characteristics: Held for sale in the ordinary course of business In process of production for such sale To be currently consumed in the production of goods or services to be available for sale. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). This definition of inventories excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified. The fact that a depreciable asset is retired from regular use and held for sale does not indicate that the item should be classified as part of the inventory. Raw materials and supplies purchased for production may be used or consumed for the construction of long-term assets or other purposes not related to production, but the fact that inventory items representing a small portion of the total may not be absorbed ultimately in the production process does not require separate classification. By trade practice, operating materials and supplies of certain types of entities such as oil producers are usually treated as inventory.
investee
An entity that issued an equity instrument that is held by an investor.
investing activities
Investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets, that is, assets held for or used in the production of goods or services by the entity (other than materials that are part of the entity's inventory). Investing activities exclude acquiring and disposing of certain loans or other debt or equity instruments that are acquired specifically for resale, as discussed in paragraphs 230-10-45-12 and 230-10-45-21.
investment contracts
Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.
investment fund options
An investment alternative provided to a participant in a defined contribution plan. The alternatives are usually pooled fund vehicles, such as any of the following: Registered investment companies (meaning, mutual funds) Commingled funds of banks Insurance entity pooled separate accounts providing varying kinds of investments, for example, equity funds and fixed income funds. The participant may select from among the various available alternatives and periodically change that selection.
Used in 1 subtopic:325-962
investment yield
The interest rate the entity expects to earn on the assets supporting policies, net of investment expense.
Used in 1 subtopic:944-40
investor
A business entity that holds an investment in voting stock of another entity.
involuntary pools
A residual market mechanism for insureds who cannot obtain insurance in the voluntary market.
Used in 1 subtopic:405-30
Issuance of Financial Statements
See paragraph 855-10-S99-2, SEC Staff Announcement: Issuance of Financial Statements, for SEC Staff views on when financial statements are deemed to be issued.
Used in 1 subtopic:855-10
Issued, Issuance, or Issuing of an Equity Instrument
An equity instrument is issued when the issuing entity receives the agreed-upon consideration, which may be cash, an enforceable right to receive cash, or another financial instrument, goods, or services. An entity may conditionally transfer an equity instrument to another party under an arrangement that permits that party to choose at a later date or for a specified time whether to deliver the consideration or to forfeit the right to the conditionally transferred instrument with no further obligation. In that situation, the equity instrument is not issued until the issuing entity has received the consideration. The grant of stock options or other equity instruments subject to vesting conditions is not considered to be issuance.
issuer
The entity that issued a financial instrument or may be required under the terms of a financial instrument to issue its equity shares.
Used in 1 subtopic:480-10