The Compensation Committee Handbook, 4th Edition

Glossary

ABA

Abbreviation for American Bar Association.

Accounting Principles Board (APB)

A board convened in 1959 by the American Institute of Certified Public Accountants (AICPA) to determine and publish accounting principles. This group was terminated in 1973 and replaced by the Financial Accounting Standards Board (FASB). All opinions of the APB remain in effect unless superseded by FASB announcements.

accredited investors

Sophisticated investors who, under the securities laws, can participate in private placements of unregistered securities. Individuals fall into this category if they have certain wealth and income characteristics, such as a net worth (alone or with a spouse) of $1 million.

accrued compensation expense

Incurred and charged expense that has not yet been paid. This expense would be reflected on the balance sheet and will show on the income statement.

actuarial assumptions

An actuary's prediction of future measures that will have an impact on pension cost. Examples include life expectancy, investment returns, inflation, and mortality rates.

actuarial equivalent

An actuary's statement that a stated benefit is the present value equivalent of a future benefit amount.

actuary

Mathematician usually employed by a life insurance company or consulting firm to calculate life insurance premiums, reserves, policy dividend payments, insurance, pension amounts, pension balances, annuity rates, and the like, using mortality rates and other risk factors obtained ...