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188 Unilever Annual Report and Accounts 2005188 Unilever Annual Report and Accounts 2005
Glossary
The following is intended to provide a general guide, particularly for United States readers, as to the meanings of various terms which
may be used in this report.
Term used in this report US equivalent or brief description
Accounts Financial statements
Associate A business which is not a subsidiary or a joint venture, but in which the Group has
a shareholding and exercises significant influence
Called up share capital Ordinary shares, issued and fully paid
Creditors Accounts payable/Payables
Creditors: amounts due after more than one year Long-term accounts payable
Creditors: amounts due within one year Current accounts payable
Debtors Accounts receivable/Receivables
Finance lease Capital lease
Freehold Ownership with absolute rights in perpetuity
Gearing Leverage
Group, or consolidated, accounts Consolidated financial statements
Finance cost Interest expense
Finance income Interest income
Joint venture A business which is jointly controlled by the Group and one or more
external partners
Nominal value Par value
Operating margin Operating profit expressed as a percentage of turnover
Operating profit Net operating income
Profit Income (or earnings)
Profit and loss account Income statement
Profit attributable to ordinary shareholders Net income attributable to ordinary stockholders
Profit retained Retained earnings
Provisions Liabilities other than debt and specific accounts payable
Reserves Stockholders’ equity other than paid-up capital
Share capital Capital stock or common stock
Share option Stock option
Share premium account Additional paid-in capital relating to proceeds of sale of stock in excess of par value
or paid-in surplus
Shareholders’ equity Stockholders’ equity
Shares in issue Shares outstanding
Statement of recognised income and expense Statement of comprehensive income
Turnover Sales revenues
Weighted average cost of capital The cost of equity multiplied by the market capitalisation, plus the after taxation
interest cost of debt multiplied by the market value of the net debt, divided by the
sum of the market values of debt and equity