Multinational Finance, 6th Edition

Glossary

Accounting Standards Codification (ASC):

Financial accounting and reporting standards issued by the U.S. Financial Accounting Standards Board (FASB), and gradually subsuming the previously issued Financial Accounting Statements (FAS).

Accounting (translation) exposure:

Changes in a corporation's financial statements as a result of changes in currency values. (Contrast with economic exposure.)

Acquisition of assets:

In an acquisition of assets, one firm acquires the assets of another company. None of the liabilities supporting that asset are transferred to the purchaser.

Acquisition of stock:

In an acquisition of stock, one firm buys an equity interest in another.

Acquisition premium:

In a merger or acquisition, the difference between the purchase price and the pre-acquisition value of the target firm.

Active fund management:

An investment approach that actively shifts funds either between asset classes (asset allocation) or between individual securities (security selection).

Active income:

In the U.S. tax code, income from an active business. (See general limitation income.)

Active security selection:

An investment strategy that attempts to identify individual securities that are underpriced relative to other securities in a particular market or industry.

Advance pricing and mutual agreement (APMA):

A contract with the domestic tax authority that identifies a methodology for evaluating whether a transfer price is an arm's-length price.

Adverse selection costs: ...