Glossary

UK GAAP – UK generally accepted accounting principles

Rules, conventions and standards that set out accounting practices for UK companies, established by the Accounting Standards Board.

Underwriting

A guarantee by a financial institution to buy any shares not subscribed for in a new share issue or Rights Issue.

Undistributed profits

Earnings from a company not distributed to its shareholders, but instead retained within the company.

Unlimited liability

A business in which the liabilities of the owners are not restricted to the capital they have invested in the business.

Unlisted securities

Shares that are not listed on a recognised stock exchange.

Unqualified opinion

Used in reference to audit opinion that is not qualified for material scope restrictions and departures from accepted accounting principle (GAAP).

Useful economic life

The period of time an asset is expected to provide economic benefits to a business.