Economy and Business Terms - Charlie, your teacher of English
regulatory laws regarding accounting and taxation require such reports once per twelve months, but
do not require that the period reported on constitutes a calendar year (that is, 1 January to 31
December). Fiscal years vary between businesses and countries. The "fiscal year" may also refer to
the year used for income tax reporting. Some companies choose to end their fiscal year on the
same day of the week, such day being the one closest to a particular date (for example, the Friday
closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53
weeks.
Fiscal policy: The existing policy that the government has for spending and taxing. Fiscal policy
directly affects economic variables, such as tax rates, interest rates, and government programs, that
influence security prices. See also monetary policy.
Fiscal Year: 1. It's a calendar businesses use to calculate revenue and expenses. Most businesses
also use their fiscal year as the period their annual budgets operate. Most jurisdictions require
businesses to issue financial statements each year but often do not specify when they must do so.
Thus, fiscal years vary by business and jurisdiction. They tend to begin in the middle of the calendar
year, particularly in retail, as the end of the calendar year is an exceptionally busy time. The U.S.
Government's fiscal year starts on October 1. In nomenclature, if a fiscal year covers more than one
calendar year it is designated by the calendar year in which it ends; for example, the U.S.
government's fiscal year from October 1, 2008 to September 30, 2009 is called "FY 09."
2. In the United Kingdom, the tax year.
Flash Trading: A controversial computerized trading practice offered by some stock exchanges.
Flash trading uses highly sophisticated high-speed computer technology to allow traders to view
orders from other market participants fractions of a second before others in the marketplace. This
gives flash traders the advantage of being able to gauge supply and demand and recognize
movements in market sentiment before other traders.
Flexible mortgage: Flexible mortgages come in many guises, but in most cases they allow you to
make extra lump sum or monthly payments, borrow back money, take payment holidays and make
underpayments. Some double up as current accounts - your salary is paid in monthly and you
effectively pay off an enormous overdraft. Not surprisingly, flexible mortgages come with higher
interest rates than standard home loans, but the great advantage is that potentially, they allow you
to
pay
your
mortgage
off
years
earlier
than
you
originally
planned.
////////////////////////////////////////////////////////////////////
Frustration: In the law of contracts, the destruction of the value of the performance that has been
bargained for by the promisor as a result of a supervening event. Frustration of purpose has the
effect of discharging the promisor from his or her obligation to perform, in spite of the fact that
performance by the promisee is possible, since the purpose for which the contract was entered into
has been destroyed. For example, an individual reserves a hall for a wedding. In the event that the
wedding is called off, the value of the agreement would be destroyed. Even though the promisee
could still literally perform the obligation by reserving and providing the hall for the wedding, the
purpose for which the contract was entered into was defeated. Apart from a nonrefundable deposit
fee, the promisor is ordinarily discharged from any contractual duty to rent the hall.
15