What Is Delivered-at-Place (DAP)? Delivered-at-place (DAP) is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In DAP agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once
What Is Delivery? In the financial markets, the term “delivery” refers to the act of transferring a commodity, currency, security, cash or another instrument that is the subject of a contract. It is often used in relation to derivative contracts such as futures and options. In some cases, the buyer of a contract may receive
What Is a Delivery Date? A delivery date is the final date by which the underlying commodity for a futures or forward contract must be delivered for the terms of the contract to be fulfilled. Most futures contracts are used as a hedge to reduce the risk of adverse price movements in a commodity and are
What Is Delivered Duty Paid (DDP)? Delivered duty paid (DDP) is a delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port. This agreement includes paying for shipping costs, export and import duties, insurance, and any other expenses incurred during shipping to
What Is Deferred Availability? Deferred availability refers to the period between when a check is deposited and funds become available. To avoid fraud that involves cashing bad checks before they are cleared, regulations exist that limit the amount of time until a deposited check has been processed. Key Takeaways Deferred availability refers to the period
What Is a Deferred Charge? A deferred charge is a long-term prepaid expense that is carried as an asset on a balance sheet until used/consumed. Thereafter, it is classified as an expense within the current accounting period. Deferred charges often stem from a business making payments for goods and services it has not yet received, such
What Is Deferred Compensation? Deferred compensation is an addition to an employee’s regular compensation that is set aside to be paid at a later date. In most cases, taxes on this income are deferred until it is paid out. There are many forms of deferred compensation, including retirement plans, pension plans, and stock-option plans. Key Takeaways
What Is Deferred Credit? Deferred credit is money that is received by a company but not immediately reported as income because it has not yet been earned. Under the accrual accounting method, revenues can only be recognized as earned when the product or service paid for by a customer has been delivered and the proceeds can
What Is Deferred Equity? Deferred equity is a type of security, such as preferred shares or convertible bonds, that can be exchanged in the future at a predetermined price for shares of common stock. These securities, also known as convertibles, are named as such because of their equity component, and the expectation that they will
What Is Deferred Income Tax? A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods. For this reason, the company’s payable income tax may not equate to the total tax expense reported. The total tax expense for a specific
