| Bond | Long-term debt instrument with periodic interest payments and principal repayment at maturity |
| Coupon Rate | Stated interest rate on a bond; determines periodic coupon payments |
| Effective Interest Rate | Market rate at issuance; used to calculate interest expense |
| Premium Bond | Bond issued above par when coupon rate exceeds market rate |
| Discount Bond | Bond issued below par when coupon rate is less than market rate |
| Amortization (Bond) | Gradual adjustment of bond carrying value toward face value over its life |
| Effective Interest Method | Interest expense = beginning book value times market rate at issuance |
| Face Value (Par Value) | Principal amount of the bond repaid at maturity |
| Finance Lease | Lease that transfers substantially all risks and rewards of ownership to lessee |
| Operating Lease | Lease that does not transfer substantially all risks and rewards (US GAAP classification) |
| Right-of-Use (ROU) Asset | Lessee’s right to use an underlying asset during the lease term |
| Lease Liability | Present value of future lease payments owed by lessee |
| Defined Benefit Plan | Pension plan where employer promises specific retirement benefits based on formula |
| Defined Contribution Plan | Pension plan where employer contributes specified amounts; retirement benefit depends on investment returns |
| Pension Obligation (PBO/DBO) | Present value of all pension benefits earned to date |
| Plan Assets | Assets set aside to fund pension obligations |
| Funded Status | Plan assets minus pension obligation; reported on balance sheet |
| Stock Compensation (Share-Based) | Compensation via stock options or restricted stock; expensed at fair value over vesting period |
| Convertible Bond | Bond that can be converted into common shares at holder’s option |
| Contingent Liability | Potential obligation dependent on future events; disclosed but not always recognized |