What is equity?

Management Dictionary
Accounting and editing

423 vues

Equity is a key concept in accounting. It includes share capital, which represents the contributions from shareholders, and reserves, which are past profits not distributed to the shareholders.
High equity indicates that the company has generated profits and has not fully distributed them. It is therefore a sign of financial health and prudence.

Liens et ressources

Mots clés

capital, equity, Financial health, Réserves

Auteur.e(s)

BASSIN Claire
Associate Professor
iaelyon School of Management

Institution(s)

Vidéos de la même institution

03:32

What is local retail?

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PIOVESAN David - iaelyon School of Management |

Management Dictionary
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03:09

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The digital and technological transformations of the past 20 years have completely disrupted sales practices and consumer behavior. In response to these major changes, the role of guidance and customer recommendation has had to reinvent itself and adopt new forms that are more aligned with today’s challenges.

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Management Dictionary
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02:49

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TAHAR Caroline - iaelyon School of Management |

Management Dictionary
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03:18

What are target costs?

How can costs be reduced without diminishing the product’s value for the customer? This question is at the origin of the target costing approach. It is not a cost calculation technique, but rather a cost management method. Its objective is to deliver a product whose perceived value meets customer expectations while not exceeding a maximum cost, the target cost, which ensures that shareholder margin requirements are met. This method is based on two principles: the additivity principle and the symmetry principle. The approach aims to control costs while preserving customer value. However, it can be very complex to implement.

TAHAR Caroline - iaelyon School of Management |

Management Dictionary
Management Control

Vidéos de la même thématique

What is offsetting?

Offsetting means offsetting assets and liabilities and only reporting the net values in the financial statements. Whether offsetting should be allowed remains the largest difference between US and international accounting standards. Banning offsetting will have a significant impact on the financial statements, especially the banks. Hence, US banks stay firmly opposed to restricting offsetting in accounting due to great negative impact on the banks capital ratios.

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Management Dictionary
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Research
Accounting and editing, Governance

Accounting and editing