Your All-in-One Canadian Financial Dictionary
Acceptance
Drafts or bills of exchange drawn on and accepted by institutions for payment to the instruments' holders on the specified maturity dates. By stamping the documentation as "accepted", institutions agree to pay a specified amount according to the terms of the letter of credit.
Accounting Principles
The accounting principles to be used for the preparation of these returns and the annual financial statements of the institution are, unless otherwise specified, to be in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada (CPA Canada).
Acquired Securities Subsidiary
A subsidiary of the institution incorporated in Canada, primarily engaged in dealing in securities, that was an established business enterprise acquired by the institution subsequent to changes in the Bank Act in 1987.
Agency Function
Functions performed by an institution, for a fee, as an agent for a customer.
Allowance for Expected Credit Losses
The Allowance for Expected Credit Losses account includes allowances for loan impairment established against on-balance sheet items and allowances for expected credit losses established against off-balance sheet items.
Amortization
The gradual reduction of a debt by equal periodic payments, sufficient to pay current interest and to extinguish the principal at maturity dates.
Amortized Value of Securities Held for Investment
The amortized value of securities held for investment is computed by adding an amount to (or deducting it from) the average carrying value of each issue at the end of each amortization period, which results in the carrying value equalling the par value if the security is held to date of call or to the date of maturity.
Annual Financial Statement
Statement the institution must send to each shareholder 21 days before the date of the annual meeting. It must include a balance sheet at the end of the financial year, a statement of income, change in financial position and changes in shareholders' equity for the financial year.
Asset
Any item of value that a person or entity owns. Assets can be tangible (physical items like property) or intangible (like patents, trademarks, or intellectual property).
Balance Sheet
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time. Also known as a statement of financial position.