Glossary

Glossary

Throughout this site acronyms may be used as abbreviations for organization names, titles, inter-governmental bodies and initiatives, business methodologies etc. This page offers some definitions which you may find helpful:

ACI

KPMG established the Audit Committee Institute (ACI) to help audit committee members keep pace with business issues relating to governance, audit, accounting and financial reporting. Since its inception in 1999, KPMG member firms have launched ACIs in 20 countries.

AMA

Advanced measurement approach

AML

Anti-money laundering

Audit related services

Services designed to help clients address specific issues which may relate to major regulatory or reporting changes or to the need for special skills on accounting matters.

BEPS

Base Erosion and Profit Shifting. The term is related to the tax planning strategy which uses gaps and inconsistencies within the tax law in order to hide or transfer profits to jurisdictions where the taxpayer shows limited or lack of activity, but where the tax rates are low. This results in low taxation or tax avoidance.  The term was spread by OECD Report on the prevention of BEPS which was published in February 2013 and which consisted of 15 actions that should be taken by the states to prevent unfair tax avoidance and transferring profits to tax havens.

BRIC

Brazil, Russia, India and China

CAS

Capital Adequacy Standard

CEE

Central and Eastern Europe

De minimis aid

Public funding given in small amounts that has a negligible impact on trade and competition. A ceiling of de minimis aid reaches EUR 200 000 granted to a single recipient over a period of three years (a specific EUR 100 000 applies to road transport). De minimis aid is deemed not to fall within the scope of Article 107(1) TFEU and is therefore exempt from the notification requirement.

EHIC

European Health Insurance Card. This confirms the right for individuals temporarily resident in other EU/EEA countries to receive medical treatment, the cost of which is then borne by the Polish National Health Fund. An EHIC card can only be issued to individuals which are covered by the social security system.

ELV

End of Life Vehicles Directive. EU legislation.

EMA

Europe, Middle East and Africa region

ENR

Energy & Natural Resources. The ENR sector includes oil and gas, power and utilities, mining and forestry industries.

Enterprise 2.0

Enterprise social software (E2.0). The use of an entire suite of emergent technologies — wikis, blogs, tagging, and social networking tools — both inside companies and between companies and the outside world.

ERM

Enterprise Risk Management frameworks

Estate agent/realtor

U.K. usage: estate agent; US usage: realtor. Professionals dealing with the valuation and sale of property.

EU-ETS

EU Emissions Trading Scheme. Launched in January 2005 with mandatory GHG (green house gas) emission controls for industrial activities from 1 January 2005. Currently focusing on activities including the production and the manufacture of ferrous metals, pulp and paper, the scope of the scheme is expected to be widened to include other GHG emissions and industrial activities from January 2008.

Euro I

Legislative regime that came into effect in 1992.

Euro IV exhaust emission standards

EU legislation.

Euro V

Legislative regime to come into effect in 2008.

EVM project management software

Earned value management project management software. Software that evaluates contractor management.

FMCG

Fast moving consumer goods

Four dimensions of business change, the

People, processes, technology and risk/control

FSA

U.K. Financial Services Authority

GAPP

Global Assignment Policies and Practices

GCC

Gulf Co-operation Council

GTMS

Global Tax Management System. A KPMG proprietary system.

GTPS

KPMG Global Transfer Pricing Services practice. A network of KPMG professionals based in KPMG member firms providing transfer pricing services.

HAZMAT legislation

Legislation regarding the regulation of hazardous materials.

IASB

International Accounting Standards Board

ICAAP

Internal Capital Adequacy Assessment Process

IFIs

Islamic financial institutions

IFRS

International Financial Reporting Standards

IFSB

Islamic Financial Services Board

Innovation

New or significantly improved product (product or service) or process, new method or new marketing method implemented in practice.

Interpreter®

KPMG web-based transfer pricing platform.

IRR

Integrated regulatory reporting

KPMG ENR Tax Masterclass training program

The Masterclass training program is a cooperative approach to learning. Built around case study workgroups, over the course of two days, the workgroups and the client work together discussing client issues, brainstorming possible solutions, and cultivating a client/KPMG network.

KPMG Financial Services Global Client Program

Through the Global Client Program Financial Services coordinates global service delivery, to clients aligning their line of business, functions and regional needs.

KPMG IFRG

KPMG International Financial Reporting Group. A single independent unit based in the U.K. providing international financial reporting services.

MNOs

Mobile network operators

OECD

Organisation for Economic Co-operation and Development. An organisation of 34 highly developed and democratic countries which was established in order to support member states to achieve the highest level of economic growth and quality of life of their citizens.

OEMs

Original equipment manufacturer(s)

PFIs

Private finance initiatives

PIT

Personal Income Tax – a direct tax on income received by individuals. In Poland, this tax is regulated by the Income Tax Act of 26 July 1991, and this tax applies to all individuals that receive remuneration (e.g. from employment or other types of contract) or business activity income.

PPPs

Public private partnership

Prospective reporting

Where permitted, assisting clients with the preparation, due diligence or attestation required as part of a process to obtain financing.

R&D tax credit

 

Tax relief for carrying out R&D activities given in the form of an additional set-off of costs incurred for research and development against taxable income. R&D tax credit applies to all businesses, regardless of industry and size. The relief allows the deduction of 10 to 30% (from 2017 it is planned to increase the amount of relief up to 50%) identified in the records expenses on research and development activities.

R&D&I

 

Research & Development & Innovation; activities including research and/or development undertaken in a systematic manner in order to increase the knowledge and use them to create new applications; It is also the business of developing new technology and run on the basis of the production of new or significantly improved products, processes, technologies or services.

REACH

Registration, Evaluation and Authorization of Chemicals. European Union (EU) directive which came into effect on June 1, 2007 and requires chemical manufacturers and importers in the EU to prove the safety of their products.

Residency certificate

A document which confirms that a given individual or company is considered a tax resident of a country and is subject to a worldwide tax liability in that country.

RoHS

Restriction of Hazardous Substances Directive

RWCR

Risk-weighted capital ratio

SEC

US Securities and Exchange Commission

SME

Micro, small or medium-sized enterprise within the meaning of Commission Regulation (EC) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

State aid

Advantage in any form granted to enterprises which cumulatively meet the following conditions: there has been an intervention by the State or through State resources, the intervention gives the recipient an advantage on a selective basis, competition has been or may be distorted, the intervention is likely to affect trade between Member States of the European Union. Due to the policy of protection of competitiveness on the EU market, state aid may be granted under strictly specified conditions. The most commonly used forms of state aid include: grants, tax relief, loan granted on preferential terms, warranty, guarantee, debt waiver, the postponement of payment of cash benefits or spreading payments in installments.

TaxCube

KPMG proprietary software

US Basel II

Known as Basel IA

WEEE

Waste Electrical and Electronic Directive