Facilities management
A contract to look after a property, which may cover not just building and plant maintenance and renewal, but also the provision of services such as security, laundry or computer facilities.

Fair value
The amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’s-length transaction.

Feasibility study
Awritten document prepared in the planning stage of a new development that represents research to justify the costs and benefits of undertaking the project.

Furniture, fittings and equipment. The components of a hotel bedroom which are ‘loose’, or not structural in origin.

Financial guarantee contract
A contract that requires the issuer to make specified payments to reimburse the holder for losses incurred because a specified debtor failed to make payment when due based on the original or modified terms of a debt instrument.

Financial reporting
Reporting information about an entity’s economic resources, claims to those resources, and the transactions and other events and circumstances that change them. Users of financial reporting information include primarily capital providers, such as present and potential equity investors, lenders and other creditor, as well as other users. Includes the general purpose financial statements (statement of financial position, statement of comprehensive income, statement of changes in equity and statement of cash flows) plus other financial information such as annual reports, press releases, etc. In general, there is no set format.

Financial risk
The risk of a possible future change in one or more of the following: a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index or other variable, etc.

First-in, first-out (FIFO) cost formula
The cost flow formula which assumes that the items of inventory that were purchased or produced first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently produced.

Fiscal year
The period for which the affairs of an entity are being accounted. Any consecutive 12-month period used by an economic entity.

Fixed costs
A cost that does not vary depending on production or sales levels within the relevant range of activity.

Fixed-assets analysis
Table showing the changes in carrying amount and depreciation, of any, of property, plant and equipment.

A statement of the gross area of the building which covers the site at ground floor level, regardless of height or overhangs.

A prediction of future events or trends by examining and analyzing available information.

Forecast report
A prediction of future events or trends by examining and analyzing available information, for example a sales budget.

Foreign currency risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes of currency exchange rates.

Foreign currency transaction
A transaction that is denominated or requires settlement in a foreign currency, including transactions.

Foreign operation
A subsidiary, associate, joint venture or branch of the reporting entity whose activities are based or conducted in a country other than the country where the reporting entity is domiciled.

Under a franchise agreement the investor retains ownership of the asset and almost full control of the operating business, subject to meeting certain basic operating criteria and product standards established by the franchisor. In return the franchisee benefits from being able to use the company’s brand name, reservation system and other forms of support (such as bulk purchasing agreements, employee training and development and financing advisory services).

Fully repairing and insuring. A term applied to leasehold agreement in which the lessee or tenant has full responsibility to keep in good repair both the inside and outside of the leased building.

Furniture and office equipment
Tangible assets with an expected useful life of more than one year, that are held for use in the process of producing goods or services for sale, that are used for rental to others, or that are held for administrative purposes.