What Is an Advance Funded Pension Plan? An advance funded pension plan is funded concurrently with the benefits accrued by employees. These funds are set aside and accounted for well before employees retire. Advance funded pension plans are generally defined-contribution plans and are fully funded. There are several ways these plans can be funded. In one scenario, the employer
What Are Advance Directives An advance directive, sometimes called a living will, is a document expressing a person’s wishes about critical care when they are unable to decide for themselves. With an advance directive, individuals have the power to make future decisions about their own critical care without outside influence. A person who wishes or does not
What Is Advance Funding? Advance funding is any advance made on a future commitment or payment. The term advance funding is used very broadly and can involve a wide assortment of financial scenarios ranging from personal or project loans, future contractual payments like annuities or royalties and government appropriations. Advance funding can take a variety
What Is Advance Loss Of Profit (ALOP) Insurance? Advance loss of profit (ALOP) insurance provides coverage for financial losses due to delays in construction and infrastructure projects. ALOP will also provide a payout if companies face higher costs or lost profits when a project takes longer than expected to complete. ALOP is often called delayed completion coverage or delay in start-up (DSU) insurance as well. Key
What Is an Advance Payment? Advance payment is a type of payment made ahead of its normal schedule such as paying for a good or service before you actually receive it. Advance payments are sometimes required by sellers as protection against nonpayment, or to cover the seller’s out-of-pocket costs for supplying the service or product.
What Is an Advance Premium? An advance premium is an initial premium paid to bind an insurance policy for a given period of time. The most commonly known use of the term “advance premium” is with respect to fluctuating insurance payments, such as om payroll-based insurance policies, where the actual amount due is not known until after
What Is the Adjusted Book Value? Adjusted book value is the measure of a company’s valuation after liabilities—including off-balance sheet liabilities—and assets adjusted to reflect true fair market value. The potential downside of using adjusted book value is that a business could be worth more than its stated assets and liabilities because it fails to
What Is Adjusted Cost Base (ACB)? An adjusted cost base (ACB) is an income tax term that refers to the change in an asset’s book value resulting from improvements, new purchases, sales, payouts, or other factors. An adjusted cost base can be calculated on a single or a per-unit basis and represents the actual cost
What Is an Adjusted Debit Balance? An adjusted debit balance is the amount in a margin account that is owed to the brokerage firm, minus profits on short sales and balances in a special miscellaneous account (SMA). Debit balances can be contrasted with credit balances, which are funds owed to a customer’s margin account by
What Are Adjusted Earnings? Adjusted earnings is a metric used in the insurance industry to evaluate financial performance. Adjusted earnings equals the sum of profits and increases in loss reserves, new business, deficiency reserves, deferred tax liabilities, and capital gains from the previous time period to the current time period. Adjusted earnings provides a measurement of
