Glossary

Functional Currency is the primary currency of the economic environment in which a company or business unit primarily generates and expends cash. It represents the currency that most faithfully reflects the entity’s underlying business operations, such as the currency of sales, expenses, labor costs, and

A Fund Flow Statement is a financial report that shows the movement of funds within an organization over a specific period. Unlike a cash flow statement, which focuses solely on cash and cash equivalents, a fund flow statement provides a broader view of the sources

The Free Cash Flow Yield (FCF Yield) is a financial valuation metric that measures the amount of free cash flow a company generates relative to its market capitalization. It is calculated by dividing a company’s free cash flow (FCF) by its market capitalization (or sometimes

A Forensic Audit is a specialized examination of an organization’s financial records to detect fraud, embezzlement, or financial misconduct. Unlike conventional audits, which primarily verify accuracy and compliance, forensic audits aim to uncover irregularities, establish accountability, and provide evidence suitable for legal proceedings. Forensic audits

A Fixed Asset Register (FAR) is a comprehensive record of a company’s tangible assets, detailing information such as acquisition cost, location, useful life, depreciation, and ownership. It helps with tracking, managing, and reporting on fixed assets, ensuring compliance, operational efficiency, and informed decision-making. Maintaining an

A Financing Gap is the shortfall between a company’s available internal funds (such as retained earnings or operating cash flow) and the capital required to finance its operations, growth initiatives, or debt obligations. In other words, it reflects the amount of external funding a business

Financial Planning & Analysis (FP&A) is the process of forecasting, budgeting, and analyzing a company’s financial performance to support strategic decision-making. FP&A provides organizations with the insights needed to optimize resource allocation, evaluate business performance, and drive sustainable growth. Unlike basic accounting, which focuses on

Financial Modelling is the process of creating a structured representation of a company’s financial performance, typically in the form of a spreadsheet model. It integrates historical data, assumptions, and projections to estimate future economic outcomes, such as profitability, cash flow, and valuation. Financial models are

Financial Due Diligence (FDD) is the process of thoroughly evaluating a company’s financial health, performance, and risks before a strategic decision, such as an investment, merger, acquisition, or partnership. It provides stakeholders with confidence that financial statements, operations, and projections reflect the true economic reality