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Idle Money

Un-invested money, that does not earn any income,  idle money may gradually lose its value due to the inflation.

Implied condition

These are fundamental conditions , even if it is not expressly included in a contract documented by the contracting parties. In law, an unwritten requirement implies a condition called condition precedent of the contract. For example, if a diaries / colanders are ordered to be delivered before the start of the year, or immediately at the start of the year but they arrive only after the quarter  ended, that order may be cancelable even if the words "Time is of the essence" are not included in the order.

Import

Products of foreign origin brought into a country.

Import duties

Refer Custom duty

Import liscence

This is a permit that allows an importer to bring in a specified quantity of specified goods during a specified period. Import licenses are used as a tool to control over outflow of foreign currency, to control entry of prohibited items,  and to protect the domestic industry from foreign competition. 

Import quota

This is the methods used in controlling the volume and value of goods coming from and into a country. It is used as a tool to facilitate or restrict the total quantity of goods imported, from a certain country

Import restrictions

Refer import quota

Imprest account

This account is used to settle small payments It is practical and better to use imprest accounts, rather than making purchases through the company’s creditors system.  The operation of such accounts should be strictly monitored because it can be misused.

Inactive account

An account that has no activity; neither deposits nor withdrawals posted to the account for a significant period of time such as one year. Also refer dormant account.

In bond

Imported goods that have not been cleared by the customs authorities due to either for non-payment of duties or insufficient documentation, etc. & kept in customs godown.

Income

This is the excess of revenue over expenses in an accounting period. It is also called earnings or gross profit. In broader term this is the amount by which total assets increased in an accounting period.

Income tax

This is the annual charge levied by the government on both direct earned income such as, salaries, bonus and unearned income e.g. dividends, profit on investment, rents etc. Income tax is a source of financing a governments operations. Its two basic types 1) Personal income tax, levied on incomes of individuals, households, partnerships, and sole-proprietorships; and 2) Corporation income tax, levied on profits of incorporated companies. 

Income yield

This is the annual income earned from an investment, expressed as a percentage of the money invested.

Incorporated company

A company registered under the company’s Act and that has been granted a status of legally recognized separate entity having its own seal, privileges, rights, and liabilities as an artificial person.

Incumbrance

It means Charge, claim, or liability, which is attached to a property. It may affect the clarity of a good title or may diminish the value of property, but generally does not prevent transfer of title. An Incumbrance can be in the form of mortgages, claims by other parties, pending legal action, unpaid taxes, etc.

Indemnifier

This is a person who gives another party security for the reimbursement of payments required in case of an anticipated loss or reimburses another in case of damage or failure to fulfill an obligation. 

Indemnity

This is a contract which provides protection against future loss or it is an agreement whereby one party agrees to secure another against an anticipated loss or damage

Indent

This is an order for goods through a local or foreign agent of a foreign supplier under specified conditions of sale. The acceptance of which either by the supplier or by the agent constitutes a contract of sale. Indent is a used in place of Performa invoice.

Indenture

This is a legal document published by the issuer of a  shares/ security giving details of the terms of the issue and key features of its legal structure.

Index

Alphabetically arranged list of items given at the end of a book with page numbers on which the item can be found.

Indirect evidence

Refer circumstantial evidence

Indirect tax

This is the charge levied by the government on consumption, expenditure, or right but not on income or property. Customs duties levied on imports, excise duties on production, sales tax or value added tax (VAT)  are examples of indirect taxes.

Individual account

 An account in the name of one individual. 

Indorse

To sign a legal document, such as a check or Person or firm who, by signing a negotiable instrument, with the purpose of ing the title of the instrument or the person named therein to another.

Indorsee

Person or firm to whom a negotiable instrument (bill of exchange, bill of lading, delivery order, or other document of title) is transferred by endorsement.

Indorsement

Indorsement of any negotiable instrument (bill of exchange, bill of lading, delivery order, or other document of title) means that the  endorser guarantees that he or she is the lawful owner of the instrument, knows of no defect in it,  has received it in good faith for value received, and is legally capable of transferring it to another party in the normal course of business

Indorsement in blank

An Indorsement which does not mention the name of the person in whose favor it is made; it is made by simple signature of the Indorser on the back of the cheque or bill of exchange. When a negotiable instrument has been indorsed in blank, its negotiability cannot afterwards be restrained and it will become payable to bearer.

Indorser

The person who makes an Indorsement

Inferential statistics

Inferential statistics is the mathematical methods such as hypothesis development that employ probability theory for deducing / inferring the properties of a population from the analysis of the properties of a sample drawn from it.

Inflation

Inflation caused by the increase in money supply due to printing of more money by a government to cover its deficits. It resulted into rapid increase in the general price level. It has its worst effect on the fixed income group, and it becomes disincentive for the saving schemes.

Information technology (IT)

IT is the combination of office automation, multimedia, and telecommunications. It can be described as set of tools to process, storage, retrieval, of data and its analyses and presentation of information.

Inheritance

Property received from successor either through a will or  through succession laws. 

In-house

Any thing Originated within a company. In-house trade means, buyer and seller are within the same company.

Inland bill

Bill issued & payable within country

Insolvency

The term is used in the situation where the liabilities of a person or firm exceed its assets. In other words it is the situation where a person or firm cannot raise enough cash to meet its financial obligations

Inspection

Official examination of a branch’s or banks record by the internal or external inspectors with the purpose to ascertain that the business is being run within the rules and regulations and policies of the bank. 

Inspection certificate

This is a certificate issued by third party, which is generally required for import of machinery, perishable products ,and products where different size of goods are ordered. It certifies that the item meets the required specifications when consignment left the port of departure.

Installment

The regular periodic payment that a borrower agrees to make to a bank or lender in case of loan or credit sale.

Institute of bankers

The Institute of Bankers Pakistan (IBP) was established in 1951. it provided a platform for continuous professional development besides a reliable yardstick for assessing the quality and depth of knowledge and skills. The management of the Institute rests with the Council which in effect operates as a Board of Governors.  The Governor, Central Bank, State Bank of Pakistan is the ex-officio President of the Institute. 

Up to 31st July 2009 in aggregate terms 7599 professionals have passed the requisite examination for the award of prestigious DAIBP.

Institutional investor

These are companies who have large amounts to invest, such as, mutual funds, pension funds, in investment banks etc. Institutional investors are more knowledgeable professionals who are in better position to protect them. 

Instrument

A legal document, as a draft or bond a negotiable instruments such as promissory note, bill of exchange or cheque.

Insufficient funds

When a depositors Chequeing account balance is inadequate to pay a cheque presented for payment.

Insurable interest

A person shall be treated to have an "insurable interest" in something only when loss or damage to it would cause that person financial loss or certain other kinds of losses.

Insurance

Coverage by a contract binding a party to indemnify another against specified loss in return for premiums paid.

Insurance certificate

Refer certificate of insurance

Insurance policy

This is a formal document in the form of contract, issued by an insurance company to an insured. Which covers indemnity clause , narrate the exact terms on which the indemnity cover has been provided, and states other information such as specific risks covered, duration of coverage,  amount of premium,  mode of premium payment, and  deductibles, if any

Insurance premium

The cost of obtaining an insurance cover, either in lump sum or in installments during the duration of the policy. Non payment of premium due automatically cancels the insurance policy which, can be  restored after payment of the outstanding amount within a specified period.

Intangible assets

These are the long-term resources of an entity, but have no physical existence. Intangible assets are classified into two broad categories,  Limited-life intangible assets, such as patents, copyrights, and goodwill, Unlimited-life intangible assets, such as trademarks.

Interbank rate

The profit  rate at which banks lend  and borrow from one another in interbank market. In Pakistan “KIBOR” serve as an indicator of levels of demand and supply in all financial markets.

Interest

This is cost of money, or fee paid for using others money. It is also called cost of debt servicing. The rate of interest is  calculated as an annual percentage of the principal, and is influenced by the money supply, amount being borrowed, creditworthiness of the borrower. There are two types of interest i.e. simple interest and compound interest.

Interim dividend

Distribution of profits to shareholders before a company’s annual profit have been computed. The companies paying interim dividend should be certain about projected profit and that, they can afford it. The necessary adjustments are passed at the year-end for final dividend payments

Intermediary

These are the  persons or companies who acts as a intermediary  between parties to a business deal, negotiation, etc. For example, banks act as intermediaries between depositors and borrowers seeking .loans these are also called a middleman. 

International

Transactions or business where more than one country is involved.

International bank for reconstruction & development (IBRD)

Popular name for IBRD is world Bank. It was established 1944 together with IMF to rebuild the economies destroyed by second world War through financing of commercial and infrastructural projects. Al though it is not a commercial banks, but its lending policies are based on strict commercial criteria. USA has about 20 percent of the voting power and chooses the banks president. 

International law

These are accepted legal rules prevailing between sovereign states. These have been built up through accords, agreements, charters, compromises, conventions, treaties, etc. The International Court Of Justice is a body of the UN The General assembly of the UN is entrusted with developing international law but it has no enforcement power. It has played a vital role in developing procedures and rules in areas such as air, land, sea, human rights. 

International monitory fund (IMF)

International Monetary Fund. An organization set up in 1944 to lower trade barriers between countries and to stabilize currencies by monitoring the foreign exchange systems of member countries, and lending money to developing nations.

International securities

Securities that can be bought and sold in international market.

Intimation letter

It is kind of a notice or memo issued by the bank to the borrower for fulfillment of any obligation, such as arrival of the documents under Letter of credit etc.

In-transit

In transit means that once goods have been left  the port or place of loading, and they are  carried to the port or place of destination over the common route without undue delay or interruption, 

Introduction

In banking the act of making person formally acquainted with the bank is call introduction. The introducer just certifies that what ever intending customer is claiming is right and genuine. The introducer does not stand as guarantor.

In-trust

This means goods/property are held in trust .It is a legal term that refers to a holder of property on behalf of a beneficiary

Inventory

This is the sum total of the details of the raw materials, goods in process and completely finished goods that are considered to be the part of a businesss assets.

Investment bank

An investment bank is a financial institution that trades Corporate Finance and advisory work, new issues of securities for raising finance, take-over, mergers and acquisitions. They also provide banking, for governments, institutions and companies; treasury dealing for corporate clients in currencies, investment management, either for corporate pension funds, private clients, either via direct investment for the more wealthy or via unit and investment trusts. 

Investment corporation of Pakistan (ICP)

The Investment Corporation of Pakistan (ICP) was established in 1966 through an Ordinance of the Federal Government of Pakistan. The objectives for the establishment of ICP are to develop the capital market, broaden the base of investments. The Corporation performs functions such as underwriting public issues of shares, providing financial assistance in local currency through purchase of Term Finance Certificates (TFCs) and providing funds for purchase of Locally Manufactured Machinery (LMM) under SBP Scheme.

Invisible export

This is export of services. The profits, dividends, interest, and royalties’ remuneration received from selling a countrys services in other countries. These invisible exports also help in earning foreign exchange for the country.

Invoice

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. 

I O U

This is abbreviation of "I Owe You." When writing out a formal note acknowledging a debt, the debtor often found it much easier to abbreviate "I owe you" to IOU. An IOU is considered an acknowledgement of a debt, but not equal to “promissory Note. The sum is generally very  negligible that legal collection actions would be counterproductive.

Irredeemable debenture

Irredeemable debentures are those where, no specific date or time is fixed in advance for the payment or redemption.   the has the full authority to choose any time to pay back the debt that it owes to the debenture holder.

Irrevocable credit

It is an undertaking by an issuing bank to pay an accepting bank a specified sum in a specified currency, provided all the conditions mentioned in the L/C document are met. This L/C cannot be canceled or its terms amended without the sellers/ beneficiarys prior written approval.

Irrevocable power of attorney

A power of attorney that cannot be revoked by the principal.

Issued capital

The proportion of authorized capital which has been issued to shareholders in the form of shared.

Issuing bank

The bank who establishes letter of credit (L/C) in favor of a beneficiary or exporter, forwards it to an advising bank for delivery to the beneficiary, and undertakes  to honor drafts drawn by the beneficiary against the amount specified in the L/C. Issuing bank also called opening bank.