What is an Addendum? An addendum is something added to a previously existing written document – usually a contract. Typically, it is either a more detailed explanation of something already noted in a contract or a proposed change to the contract. The word addendum, or the plural addenda, is derived from the Latin word addere, which means…
What is Vetting? Vetting is a process in which a background check is conducted before deciding on a specific item of action. Vetting occurs throughout various professions and is a critical process in which various decisions of different sizes are appraised. Fact-checking through the vetting process allows for informed decision-making, long-term strategic planning, and protection…
What is Non-Farm Payroll? Non-farm payroll represents the change in jobs in the economy over the previous month that does not include farm workers, private household employees, or non-profits. The statistic is released by the U.S. Department of Labor and is a key indicator of the labor market. The non-farm payroll data helps present the…
What is a Non-Cash Charge? A non-cash charge is an accounting expense that does not involve any cash outflow. Unlike a transactional expense that uses cash, a non-cash charge is only considered as an accounting expense on the income statement. Non-cash charges can include expenses such as depreciation, amortization, and depletion. In all the cases…
What is National Insurance Contribution (NIC)? National Insurance Contribution (NIC) is the amount payable by employed individuals and employers to HM Revenue and Customs (HMRC) – the UK government’s non-ministerial department. When initiated by the National Insurance Act 2011, it provided a kind of insurance benefits against unemployment and illness, and after some amendments, eventually…
What is Asset Protection? Asset protection refers to a set of techniques, strategies, and laws that aims to protect assets belonging to individuals and businesses against the claims of creditors who are attempting to legally seize the assets. While creditors engage in developing and planning for the best debt collection strategies, debtors use asset protection…
What is Net Settlement? A net settlement is an inter-bank payment settlement system wherein banks collect data on transactions throughout the day and exchange the information with the clearinghouse and the central bank to settle any outstanding amounts. In a net settlement system, banks keep track of their electronic (and physical) credit and debit transactions…
What are Negative Interest Rates? Negative interest rates are used by central banks to increase borrowing in times of economic recession. By offering a negative interest rate, the central bank decreases the overall economy-wide cost of borrowing, aiming to increase economic activity through increased investment and consumption spending. Negative interest rates are a monetary policy…
What is Negative Gearing? Negative gearing occurs when an investment that is made using borrowed funds produces cash flows that are lower than the interest and other expenses paid towards that investment. Understanding Negative Gearing The concept can be explained using the figure below: Normally, negative gearing is seen in…
What is Net Unrealized Appreciation (NUA)? Net unrealized appreciation (NUA) occurs when employees own stock in the company where they are employed, and there is a difference between the average cost basis and the current market value of the shares owned. Several companies give employees stock ownership in the company as a form of compensation…
