| A | B |
|---|
| Piecemeal Acquisition | Parent company buys separate blocks of subsidiary stock at different points in time. |
| Parent Company Concept | Views each block as a separate ownership interest with a different excess of cost or book value for each block. |
| Segment of a Business | A component of an entity whose activities represent a separate major line of business or class of customer. |
| Economic Unit Concept | The parent has chosen to sell subsidiary shares, instead of parent shares, to raise additional equity capital. |
| Apportionment of Retained Earnings | Division of retained earnings to preferred and common shareholders |
| Horizontally Integrated | Enterprises that have a number of operating segments that are involved in similar or related activities or industries. |
| Vertically Integrated | Enterprises that have a number of operating segments that focus on various stages (acquisition of raw materials, production, distribution) of a single activity or industry. |
| Diversified Company | Enterprises that are involved in a variety of activities or industries which are not necessarily related to each other. |
| Operating Segments | The segments which emerge from an analysis of how management organizes information for decision-making purposes. |
| Excess of Replacement Cost for Temporary Liquidation | A current liability on the interim financial statements associated with an interim liquidation of inventory. |
| Loss Carryback | A tax provision that allows an entity to apply (carryback) a current net operating loss (NOL) against operating income of previous periods for the purpose of recognizing the tax benefit associated with the NOL. |
| Loss Carryforward | A tax provision that allows an entity to apply (carryforward) a current net operating loss (NOL) against operating income of future periods for the purpose of recognizing the tax benefit associated with the NOL. |
| Non-Ordinary Items of Income/Loss | Items of income or loss that are not classified as income or loss from continuing operations (e.g., discontinued operations, and extraordinary items). |
| Apportionment of Tax | The allocation of a tax expense (benefit) to the primary categories (e.g., income from continuing operations, extraordinary items) of pretax income (loss). |
| Reportable Segment | An operating segment that satisfies certain criteria designed to determine if the segment is significant in nature and therefore, should be required to report certain financial information. |
| New Control Group | Owners of the control group who were not members of the previous control group. |
| Basic Earnings Per Share | Controlling interest in consolidated net income divided by parent shares. |
| Diluted Earnings Per Share | Earnings per share adjusted for parent and subsidiary company dilutive securities. |
| Secondary Tax | The tax owed by the parent on its share of net of tax (first tax) income of the subsidiary. |
| Affiliated Group | Parent and subsidiary group that qualify for taxation as a consolidated entity |
