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Accounting Term and Definition

GAAP Accounting Terms and Definitions for Industry Specific



This post contains accounting terms and definitions for industry specific, extracted from the Accounting Standard Codifications [ASC] of the new GAAP. This terms and definitions is no mean complete, but presents the most used terms in the accounting for specific industries followed by its definitions. It is proposed as an aid kit for anyone who learning [or observing] the new GAAP [ASC], especially in the specific industrial topics such as: banking and thrift institutions, broadcasting, cable television, computer software developers, employee benefit plans [including pension funds providers], finance companies, government contractors, investment companies, mortgage banking, motion pictures, not-for-profit organization, recording and music, and plant titles. Accounting terms and definitions for industry specific may helps accounting academies and observers as a starting point for the next researches in this area. Enjoy!



Accounting Terms And Definitions For Banking And Thrift Institutions

Accretable yield.  In the context of loans acquired in transfers, the cash flows expected to be collected in excess of the initial investment.

Carrying amount.  The face amount of the interest-bearing asset plus (or minus) the unamortized premium (or discount).

Commitment fees.  Fees charged for entering into an agreement that obligates the enterprise to make or acquire a loan or to satisfy an obligation of the other party under a specified condition.  For purposes of this Statement, the term commitment fees includes fees for letters of credit and obligations to purchase a loan or group of loans and pass-through certificates.

General reserve.  Used in the context of the special meaning this term has in regulatory pronouncements and in the US Internal Revenue Code.

Incremental direct costs.  Costs to originate a loan that (1) result directly from and are essential to the lending transaction and (2) would not have been incurred by the lender had that lending transaction not occurred.

Long-term interest-bearing assets.  For purposes of this section, these are interest-bearing assets with a remaining term to maturity of more than one year.

Net-spread method.  Under this method, the acquisition of a savings and loan association is viewed as the acquisition of a leveraged whole rather than the acquisition of the separate assets and liabilities of the association.

Non-accretable difference.  In the context of loans acquired in a transfer, the excess of contractual cash flows over the amount of expected cash flows.

Origination fees.  Fees charged to the borrower in connection with the process of originating, refinancing, or restructuring a loan.  This term includes, but is not limited to, points, management, arrangement, placement, application, underwriting, and other fees pursuant to a lending or leasing transaction and also includes syndication and participation fees to the extent they are associated with the portion of the loan retained by the lender.

Pretax accounting income.  Represents income or loss for a period, exclusive of related income tax expense, determined in conformity with generally accepted accounting principles.

Reserve for bad debts.  Term is used in the context of the special meaning this term has in regulatory pronouncements and in the US Internal Revenue Code.

Separate-valuation method.  Under this method, each of the identifiable assets and liabilities (assumed) of the acquired savings and loan association is accounted for in the consolidated financial statements at an amount based on fair value at the date of acquisition, either individually or by types of assets and types of liabilities.

Servicing asset or liability.  A contract to service financial assets under which the estimated future revenues from contractually specified servicing fees, late charges, and other ancillary revenues are expected (asset) or not expected (liability) to adequately compensate the entity for providing the servicing.

Taxable income.  Represents pretax accounting income (1) adjusted for reversal of provisions of estimated losses on loans and property acquired in settlement of loans, gains or losses on the sales of such property, and adjusted for permanent differences and (2) after giving effect to the bad debt deduction allowable by the US Internal Revenue Code assuming the applicable tax return were to be prepared based on such adjusted pretax accounting income.


Accounting Terms And Definitions For Broadcasting Companies

Barter.  The exchange of unsold advertising time for products or services.

Broadcaster.  An enterprise or an affiliated group of enterprises that transmits radio or television program material.

Daypart.  An aggregation of programs broadcast during a particular time of day (e.g., daytime, evening, late night) or programs of a similar type (e.g., sports, news, children’s shows).

License agreement for program material.  A typical license agreement for program material (e.g., features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.

Network affiliation agreement.  A broadcaster may be affiliated with a network under a network affiliation agreement.  Under the agreement the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in the network programming.


Accounting Terms And Definitions For Cable Televisions Industry

Cable television plant.  The cable television plant refers to the equipment required to render service to subscribers including:

Head-end.  This includes the equipment used to receive signals of distant television or radio stations, whether directly from the transmitter or from a microwave relay system.  It also includes the studio facilities required for operator-originated programming, if any.

Cable.  This consists of cable and amplifiers (which maintain the quality of the signal) covering the subscriber area, either on utility poles or underground.

Drops.  These consist of the hardware that provides access to the main cable, the short length of cable that brings the signal from  the main cable to the subscriber’s television set, and other associated hardware, which may include a trap to block particular channels.

Converters and descramblers.  These devices are attached to the subscriber’s television sets when more than twelve channels are  provided or when special services are provided, such as “pay cable” or two-way communication.

Direct selling costs.  Direct selling costs include commissions, the portion of a salesperson’s compensation other than commissions for obtaining new subscribers, local advertising targeted for acquisition of new subscribers, and costs of processing documents related to new subscribers acquired.  Direct selling costs do not include supervisory and administrative expenses or indirect expenses, such as rent and other facilities costs.

Subscriber-related costs.  Costs incurred to obtain and retain subscribers including costs of billing and collection, bad debts, and mailings; repairs and maintenance of taps and connections; franchise fees related to revenues or number of subscribers; general and administrative system costs, such as salary of the system manager and office rent; programming costs for additional channels used in the marketing effort or costs related to revenues from, or number of subscribers to, per channel or per program service; and direct selling costs.


Accounting Terms And Definitions For Computer Software Developers

Coding.  Generating detailed instructions in a computer language to carry out the requirements described in the detail program design.  The coding of a computer software product may begin prior to, concurrent with, or subsequent to the completion of the detail program design.

Customer support.  Services performed by an enterprise to assist customers in their use of software products.  Those services include any installation assistance, training classes, telephone question and answer services, newsletters, on-site visits, and software or data modifications.

Detail program design.  The specifications of a computer software product that take product functions, features, and technical requirements to their most detailed, logical form and enables coding of the product.

Maintenance.  Activities undertaken after the product is available for general release to customers to correct errors (commonly referred to as “bugs”) or keep the product updated with current information.  Those activities include routine changes and additions.

Product design.  A logical representation of all product functions in sufficient detail to serve as product specifications.

Product enhancement.  Improvements to an existing product that are intended to extend the life or improve significantly the marketability of the original product.  Enhancements normally require their own product design and may require a redesign of all or part of the existing product.

Product masters.  A completed version, ready for copying, of the computer software product, the documentation, and the training materials that are to be sold, leased, or otherwise marketed.

Testing.  Performing the steps necessary to determine whether the coded computer software product meets function, feature, and technical performance requirements set forth in the product design.

Working model.  An operative version of the computer software product that is completed in the same software language as the product to be ultimately marketed, performs all the major functions planned for the product, and is ready for initial customer testing (usually referred to as beta testing).


Accounting Terms And Definitions For Employee Benefit Plans Providers [Including Pension Funds]

Accumulated plan benefits or benefit obligations.  Benefits that are attributable to services rendered by employees before the date at which the actuarial present value of the plan obligation is computed.

Defined benefit plan.  A plan that promises stated or otherwise determinable benefits to participants based on factors such as compensation, years of service, and age.

Defined contribution plan.  A plan in which benefits are based on amounts contributed, investment experience, and allocated forfeitures, net of administrative expenses.  Each participant’s benefits are computed based on his or her individual account.

Health and welfare benefit plan.   Plans that provide benefits such as medical, dental, visual, or other health care, insurance, disability, vacation, education, or dependent care.

Net assets.  The residual interest in the assets of an employee benefit plan that remains after deducting its liabilities.  The liabilities of a plan do not include its accumulated plan benefits (defined benefit pension plans) or its benefit obligation (defined benefit health and welfare plans).

Plan sponsor.   The company, association, employee group, or other group of representatives that established or maintains the plan.


Accounting Terms And Definitions For Finance Companies

Accounts receivable loan.  A loan collateralized by the accounts receivable of the borrower.

Dealer reserves.  Finance company liabilities for dealers’ shares of finance charges on retail contracts purchased from dealers.

Direct consumer loan.  A two-party transaction in which the finance company lends funds directly to the borrower; such a loan may or may not be collateralized.

Discount.  Amount deducted from the face value in advance as a charge for the loan or a deduction for interest at the time of the loan or any charge for credit that is pre-computed and included in the face of the instrument.

Discount loan.  A loan that is written with the interest or finance charges included in the face amount of the note.  Discount loans are also called pre-compute or add-on loans.

Effective interest rate.  The implicit rate of interest based on the amount advanced and the amount and timing of the specified repayments over the period of the contract.

Factor.  A company that engages primarily in factoring.

Factoring.  Purchase, usually without recourse, of individual accounts receivable arising in the client’s ordinary course of business.  Under a factoring agreement, the finance company also provides credit checking, collection, and recordkeeping services.

Floor plan checking.  Physical inspection of dealer’s inventories that are collateral for advances to the dealer to be repaid from the proceeds from sale of specific items.  Sometimes referred to as floor plan auditing.

Floor planning.  Financing of dealers’ inventories, particularly automobiles and other consumer goods, sometimes referred to as wholesaling.  The dealers are obliged to repay the supplier or manufacturer from proceeds of sale of specific items, or after an elapsed period even though inventory is not sold.

Interest-bearing loan.  A loan that is written at the principal amount advanced to the borrower and bearing interest computed monthly on the unpaid balance.

Interest method.  A method of computing income under which interest income on a fixed-rate obligation is accrued over the life of the loan based on a constant rate (percent) of interest applied to the outstanding loan balance.  As a result, the amount of income recognized at a given time is directly proportional to the outstanding loan balance.  Also called the actuarial method.

Inventory loan.  A loan collateralized by inventory of the borrower.

Nonrefundable fee.  Any charge made in connection with a loan that does not have to be refunded to the borrower when the loan is prepaid.

Origination fee.  An amount charged by finance companies for originating, refinancing, or restructuring a loan.  The amount may be intended to cover costs such as underwriting, loan application processing, and reviewing legal title to property involved.

Over-advance (in factoring).  An amount advanced to a client in excess of the amount of uncollected receivables purchased by the factor.

Points.  Amounts, generally expressed as a percent of the loan, charged for granting loans, that primarily are adjustments of yield but also may be intended to cover costs such as underwriting, loan application processing, and reviewing title to collateral.


Accounting Terms And Definitions For Government Contractors

Contractors.  In the context of this discussion, contractors are enterprises that sell products or services to the US government pursuant to a formal contract.  The relationship to the government can be direct (a prime contract between the enterprise and the government) or indirect (a subcontract between the enterprise and a prime contractor).

Contract.  A legal agreement obligating a contractor (referred to as the “general contractor” or “prime contractor”) to provide products or services to the US government.  The term also refers to subcontracts obligating subcontractors to indirectly perform in a similar manner under the supervision and control of the prime contractor.

Cost-plus-fixed-fee contracts.  An agreement that provides for contractors to receive a specified fixed fee and to be reimbursed for their allowable costs.  Because title passes to the government and the contractor obtains an unconditional right to partial payment prior to delivery, delivery of the finished product is not necessarily evidence of performance.

Disposal credits.  Deductions from the termination claim receivable for approved retention or sale of inventory previously included in the claim.

No-cost settlements.  Settlements in which the contractor waives the right to make a claim.  No sale is recorded and applicable costs retain their usual classification.

Service contracts.  Contracts in which the contractor acts only as an agent.

Supply contracts.  Contract in which the contractor’s services extend beyond that of an agent.  Contracts include services such as the use of the contractor’s own facilities and the contractor assumes responsibility to creditors for material and services, and to employees for salaries.

Subcontractor’s claims.  Claims made in conjunction with a terminated contract resulting from costs incurred under the terminated contract that did not result in the transfer of billable materials or services to the contractor before termination.


Accounting Terms And Definitions For Investment Companies

Closed-end fund.  An investment company having a fixed number of shares outstanding, which it does not stand ready to redeem.  Its shares are traded similarly to those of other public corporations.

Closed-up fund.  An open-ended investment company that no longer offers its shares for sale to the general public but still stands ready to redeem its outstanding shares.

Equalization.  An accounting method used to prevent a dilution of the continuing shareholders’ per share equity in undistributed net investment income caused by the continuous sales and redemptions of capital shares.

Ex-dividend or ex-distribution.  Synonym for shares being traded without dividend or without capital gains distribution.  The buyer of a stock selling ex-dividend does not acquire a right to receive a previously declared but not-yet-paid dividend.  Dividends are payable on a fixed date to shareholders recorded on the stock transfer books of the disbursing company as of a previous date of record.  For example: a dividend may be declared as payable to holders of record on the books of the disbursing company on a given Friday.  Because five business days are allowed for delivery of the security in regular-way transactions on a stock exchange or over-the-counter, the exchange or the National Association of Securities Dealers (NASD) declares the stock ex-dividend as of the opening of the market on the preceding Monday or on one business day earlier for each intervening non-trading day. Therefore, anyone buying the stock on and after Monday is not entitled to the dividend.  In the case of non-traded shares of mutual funds, the ex-dividend date is the same as the record date.

Open-end investment company.  A mutual fund that is ready to redeem its shares at any time and that usually offers its shares for sale to the public continuously.


Accounting Terms And Definitions For Mortgage Banking

Affiliated enterprise.  An enterprise that directly or indirectly controls, is controlled by, or is under common control with another enterprise; also, a party with which the enterprise may deal if one party has the ability to exercise significant influence over the other’s operating and financial policies.

Current (normal) servicing fee rate.  A servicing fee rate that is representative of servicing fee rates most commonly used in comparable servicing agreements covering similar types of mortgage loans.

Federal Home Loan Mortgage Corporation (FHLMC).  Often referred to as “Freddie Mac,” FHLMC is a private corporation authorized by Congress to assist in the development and maintenance of a secondary market in conventional residential mortgages.  FHLMC purchases and sells mortgages principally through mortgage participation certificates (PC) representing an undivided interest in a group of conventional mortgages.  FHLMC guarantees the timely payment of interest and the collection of principal on the PC.  FHLMC has been effectively taken over by the federal government as part of the banking bailout that began in late 2008.

Federal National Mortgage Association (FNMA).  Often referred to as “Fannie Mae,”  FNMA is an investor-owned corporation established by Congress to support the secondary mortgage loan market by purchasing mortgage loans when other investor funds are limited and selling mortgage loans when other investor funds are available.  FNMA has been effectively taken over by the federal government as part of the banking bailout that began in late 2008.

Gap commitment.  A commitment to provide interim financing while the borrower is in the process of satisfying provisions of a permanent loan agreement, such as obtaining a designated occupancy level on an apartment project.  The interim loan ordinarily finances the difference between the floor loan (the portion of a mortgage loan commitment that is less than the full amount of the commitment) and the maximum permanent loan.

Government National Mortgage Association (GNMA).  Often referred to as “Ginnie Mae,” GNMA is a US governmental agency that guarantees certain types of securities (mortgage-backed securities) and provides funds for and administers certain types of low income housing assistance programs.

Internal reserve method.  A method for making payments to investors for collections of principal and interest on mortgage loans by issuers of GNMA securities.  An issuer electing the internal reserve method is required to deposit in a custodial account an amount equal to one month’s interest on the mortgage loans that collateralize the GNMA security issued.

Mortgage-backed securities.  Securities issued by a governmental agency or corporation (e.g., GNMA or FHLMC) or by private issuers (e.g., FNMA, banks, and mortgage banking enterprises).  Mortgage-backed securities generally are referred to as mortgage participation certificates or pass-through certificates (PC).  A PC represents an undivided interest in a pool of specific mortgage loans.  Periodic payments on GNMA PC are backed by the US government.  Periodic payments on FHLMC and FNMA PC are guaranteed by those corporations and are not backed by the US government.

Mortgage banking enterprise.  An enterprise that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account.  Mortgage banking enterprises, as local representatives  of institutional lenders, act as correspondents between lenders and borrowers.

Permanent investor.  An enterprise that invests in mortgage loans for its own account, for example, an insurance enterprise, commercial or mutual savings bank, savings and loan association, pension plan, real estate investment trust, or FNMA.

Repurchase financing.  A repurchase agreement that relates to a previously transferred financial asset between the same counterparties, and which is entered into contemporaneously with, or in contemplation of, the initial transfer.

Securitization.  The transformation of a pool of financial assets (e.g., mortgages) into securities (asset-backed securities).

Servicing.  Mortgage loan servicing includes collecting monthly mortgagor payments, forwarding payments and related accounting reports to investors, collecting escrow deposits for the payment of mortgagor property taxes and insurance, and paying the taxes and insurance from the escrow funds when due.

Standby commitment.  A commitment to lend money with the understanding that the loan probably will not be made unless permanent financing cannot be obtained from another source.  Standby commitments ordinarily are used to enable the borrower to obtain construction financing on the assumption that permanent financing will be available on more favorable terms when construction is completed.  Standby commitments normally provide for an interest rate substantially above the market rate in effect when the commitment is issued.


Accounting Terms And Definitions For Motion Pictures

Cross-collateralized.  A contractual arrangement granting distribution rights to multiple films, territories and/or markets to a licensee.   In this type of arrangement, the exploitation results of the entire package are aggregated by the licensee in determining amounts payable to the licensor.

Distributor.  The owner or holder of the rights to distribute films.  Excluded from this definition, for the purposes of applying ASC 926, are entities that function solely as broadcasters, retailers (such as video stores), or movie theaters.

Exploitation costs.  All direct costs incurred in connection with the film’s distribution.  Examples include marketing, advertising, publicity, promotion, and other distribution expenses.

Film costs.  Film costs include all direct negative costs incurred in the physical production of a film, including allocations of production overhead and interest capitalized in accordance with ASC 835-20.  Examples of direct negative costs include costs of story and scenario; compensation of cast members, extras, directors, producers, and miscellaneous staff; costs of set construction and operations, wardrobe and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.

Film prints.  The materials containing the completed audio and video elements of a film which are distributed to a theater to exhibit the film to its customers.

Firm commitment.  An agreement with a third party that is binding on both parties. The agreement specifies all significant terms, including items to be exchanged, consideration, and timing of the transaction.  The agreement includes a disincentive for nonperformance that is sufficiently large to ensure the expected performance.  With respect to an episodic television series, a firm commitment for future production includes only episodes to be delivered within one year from the date of the estimate of ultimate revenue.

Market.  A distribution channel located within a certain geographic territory for a certain type of media, exhibition, or related product.  Examples include theatrical exhibition, home video (laser disc, videotape, DVD), pay television, free television, and the licensing of film-related merchandise.

Nonrefundable minimum guarantee.  Amount to be paid by a customer in a variable fee arrangement that guarantees an entity a minimum fee on that arrangement.  This amount applies to payments paid at inception, as well as to legally binding commitments to pay amounts over the license period.

Overall deal.  An arrangement whereby an entity compensates a creative individual (e.g., producer, actor, or director) for the exclusive or preferential use of that party’s creative services.

Participation costs.  Frequently, persons involved in the production of a film are compensated, in part or in full, with an interest (referred to as a “participation”) in the financial results of the film.  Determination of the amount of compensation payable to the participant is usually based on formulas (participations) and by contingent amounts due under provisions of collective bargaining agreements (residuals).  The recipients of this compensation are referred to as participants and the costs are referred to as participation costs.  Participations may be paid to creative talent (e.g. actors or writers), or to entities from whom distribution rights are licensed.

Producer.  An individual or enterprise that is responsible for all aspects of a film.  Although the producer’s role may vary, his or her responsibilities include administration of such aspects of the project as initial concept, script, budgeting, shooting, postproduction, and release.

Revenue.  Amounts earned by an entity from its direct distribution, exploitation, or licensing of a film, before deduction for any of the entity’s direct costs of distribution.  In markets and territories where the entity’s fully or jointly owned films are distributed by third party distributors, revenue is the net amount payable to the entity by the distributor.  Revenue is reduced by appropriate allowances, estimated returns, price concessions, or similar adjustments, as applicable.

Sale.  The transfer of control of the master copy of a film and all of the associated rights that accompany it.

Set for production.  A film qualifies as being set for production when all of the following conditions have been met: (1) management with relevant authority authorizes (implicitly or explicitly) and commits to funding the film’s production; (2) active preproduction has begun; and (3) the start of principal photography is expected to begin within six months.

Territory.  A geographic area in which a film is exploited, usually a country.  In some cases, however, a territory may be contractually defined as countries with a common language.


Accounting Terms And Definitions For Not-For-Profit Organizations

Agent.  An entity that acts for and on behalf of another.  For example, a not-for-profit organization acts as an agent for and on behalf of a donor if it receives resources from the donor and agrees to transfer the resources or the return generated by investing those resources to another entity named by the donor.  Similarly, a not-for-profit organization acts for and on behalf of a beneficiary if it agrees to solicit contributions in the name of the beneficiary and distribute any contributions thereby received to the beneficiary.

Collections.  Works of art, historical treasures, or similar assets that meet the following three criteria:  (1) they are held for public exhibition, education, or research in service to the public rather than for financial gain; (2) they are protected, kept unencumbered, cared for, and preserved; and (3) they are subject to a policy requiring that the organization use the proceeds from the sale of an item to acquire another item for the collection.

Contribution.  A voluntary and unconditional transfer of assets to an entity (the donee) from another entity that does not expect to receive equivalent value in exchange and does not act as an owner (the donor).  A contribution can also take the form of a settlement or cancellation of the donee’s liabilities.

Donor-imposed restriction.  A donor stipulation that specifies a use for contributed resources that is narrower than the limitations that result from the nature of the organization, the environment in which it operates, and the purposes specified in its articles of incorporation, bylaws, or similar documents.  A restriction may be temporary or permanent.  A temporary restriction is a restriction that will expire (be satisfied) either by an action of the organization (such as spending the resources for the purpose described by the donor) or by the passage of time.  A permanent restriction never expires.  Instead, it requires that the contributed resources be maintained permanently, although it allows the organization to spend the income or to use the other economic benefits generated by those resources.

Donor-imposed condition.  A donor stipulation that specifies a future and uncertain event whose occurrence (or failure to occur) gives the donor the right of return of resources it has transferred or releases the donor from the obligation to transfer assets in the future.  For example, “I will contribute one dollar for each dollar raised during the month of July in excess of $10,000,” includes a donor-imposed condition.  If only $9,000 is raised, the donor has no obligation to transfer assets.

Endowment fund.  A fund of cash, securities, or other assets held to provide income for the support of a not-for-profit organization.  A donor-restricted endowment fund is a fund established by a donor, specifying that the gift must be invested permanently to generate support (a permanent endowment fund) or invested for a specified period of time (a term endowment fund).  A quasi endowment fund is a fund established by an organization’s governing board to provide income for a long, but usually unspecified, period of time.  A quasi endowment fund may be created from unrestricted resources or from resources that are for a restricted purpose but not required by the donor to be invested.

Intermediary.  An organization that acts as a facilitator for the transfer of resources between two or more other parties.  An intermediary generally does not take possession of the assets transferred.

Net assets.  The residual interest in the assets of a not-for-profit organization that remains after deducting its liabilities.  Net assets are divided into three categories—permanently restricted, temporarily restricted, and unrestricted—based on the nature and existence (or absence) of donor-imposed restrictions.  Permanently restricted net assets are the portion of net assets that result from contributions and other inflows of resources that are subject to permanent donor-imposed restrictions.  Permanently restricted net assets are not permitted to be expended or used up.  Temporarily restricted net assets are the portion of net assets that result from contributions and other inflows of resources that are subject to temporary donor imposed restrictions.  They are permitted to be expended or used up as long as their use is consistent with the limitations imposed by the donor.  Unrestricted net assets are the portion of net assets that are neither permanently nor temporarily restricted by donors.  The use of unrestricted net assets is subject only to the limitations imposed by the nature of the organization, its articles of incorporation or bylaws, and the environment in which it operates.

Promise to give.  A written or oral agreement to contribute resources to another entity at a future date.  A promise to give can be either conditional or unconditional.  The obligation of the donor who makes a conditional promise to give is dependent on the occurrence (or failure to occur) of a donor-imposed condition.  An unconditional promise to give depends only on the passage of time or demand by the donee for payment of the promised assets.

Trustee.  An entity that holds and manages assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement.

Voluntary health and welfare organization.  An organization formed for the purpose of attempting to prevent or solve health and welfare problems of society, and in many cases, of particular individuals.


Accounting Terms And Definitions Recording And Music

Advance royalty.  An amount paid to music publishers, producers, songwriters, or other artists in advance of their earning royalties from recording or sheet music sales.  These amounts are based on contractual terms and are generally nonrefundable.

License agreements.  Contractual arrangements entered into by an owner (licensor) of a master or music copyright and a licensee that grant the licensee the right to sell or distribute recordings or sheet music for a fixed fee paid to the licensor or for a fee based on sales.

Minimum guarantee.  An amount paid in advance by a licensee to a licensor for the right to sell or distribute recordings or sheet music.

Recording (or record) master.  The master tape resulting from the performance of the artist.  It is used to produce tapes for use in making cartridges, cassettes, and compact discs.

Royalties.  Amounts paid to producers, songwriters, or other artists for their participation in making recordings and to sheet music publishers for their copyright interest in music.


Accounting Terms And Definitions For Title Plants

Title plant.  Consists of (1) indexed and catalogued information for a period concerning the ownership of, and encumbrances on, parcels of land in a particular geographic area; (2) information relating to persons having an interest in real estate; (3) maps and plats; (4) copies of prior title insurance contracts and reports; and (5) other documents and records.  In summary, a title plant constitutes a historical record of all matters affecting title to parcels of land in a particular geographic area.
