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Dictionary of terms


Preference shares – registered shares granted to the founders of the company.

Shareholder – the holder of shares issued by a joint-stock company. Anyone holding ownership rights has the right to a share in profit indicated in the financial statements. This profit is distributed in accordance with the number of shares.

Balance sheet – a statement of the company’s assets and liabilities at a given date, known as the balance sheet date

Dividend – part of the net profit of the company after income tax. Profit is distributed among the shareholders depending on the share held in the company, as recorded at the end of the day of establishing the right to dividend.

Financial period – in tax law: a tax period usually consisting of twelve consecutive months, most frequently coinciding with the calendar year.

Profit and loss account – informs on the effectiveness of individual types of activity and the overall financial result of the enterprise. The profit and loss account summarises the income and expenses of the enterprise, and shows its ability to generate profit and self-finance.

Supervisory Board – a body of a legal person appointed to perform supervisory activities, acting on the basis of the relevant provisions governing the functioning of the legal person and its articles of association.

Certified auditor’s report – the certified auditor’s opinion is a document containing final conclusions resulting from the conducted audit of the financial statements. The auditor’s opinion is supplemented with the audit report and audit documentation.