ImmovableAssets, such as land or property, which cannot be changed or moved.
Implicit costRelates to the foregone benefits of any single transaction, for example, the implicit cost of taking a holiday is the wages that would have been earned if the individual had worked instead.
Imprest systemMaintaining a constant cash float. The system ensures greater control over cash expenses as documentation must be made to calculate the balance required for reimbursement. The system is therefore far easier to reconcile.
Inflation accountingA method of accounting designed to correct problems arising from historical cost accounting in the presence of inflation.
Inflation taxThe hidden cost incurred due to effects of inflation on the value cash balances.
Inheritance taxTax levied on the transfer of an individuals estate on his/her death to non-exempt beneficiaries, subject to a nil rate band.
InsolventOccurs when an individual or company has insufficient funds to settle debts when they become payable.
Intangible AssetsAssets without physical substance controlled by an entity which provide expected future economic benefits, e.g. goodwill, patents, trademarks and copyrights.
Interbank rateRate that banks charge each other for loans for periods between one day and several years.
Interest bearingTerm describing securities paying a specified rate of interest in one or a series of payments over its life.
Interest coverIt is calculated by dividing operating profits by net interest payments and compares the interest paid on borrowings, net of interest bearing deposits, with its operating profit, e.g. a low figure means profits are more exposed to rises in the cost of borrowing.
Interest payableAmount a company pays in the form of interest, e.g. on cash borrowings.
Interest rate futuresFutures contracts traded on fixed income securities based on the levels of official interest rates.
Interest rate swapArrangement in which two parties agree to exchange interest rate flows at agreed intervals over an agreed period, but without any principal being paid.
Interest receivableAmount of income a company receives in the form of interest payments, e.g. on cash.
Interim dividendThe dividend declared part-way through the financial year, before annual earnings are established.
IntermediaryAn agent, broker or financial institution that can give advice and act as a middle person between one individual/organisation and another.
Internal rate of returnThe interest rate which, when used as the discount rate for a series of cash flows, gives a net present value of zero.
InterpolationThe process of determining a figure or rate that lies between other known data.
InventoryA company’s finished goods, work in progress and raw materials.
Investment incomeIncome, paid from an investment, such as dividends and interest.
IP (Intellectual Property)Treatment of certain intangible products similarly to physical assets, with the majority of countries granting certain rights, under IP laws, over these intangibles.
IPO (Initial Public Offering)The first offering of a company’s shares to the public.
ISA (Individual Saving Account)A financial product designed for the purpose of investment and savings offering favourable tax status.
ISC (Issued share capital)Amount of authorised share capital in a company that shareholders have subscribed to own.
Issue pricePrice at which a company’s shares are offered to the market for the first time.