Payback method
Amethod for discriminating between projects based on how quickly the original cash investment is repaid.

The relationship of the income and expenses of an entity, as reported in the statement of comprehensive income.

Personal income tax
A tax levied on net personal income. Personal income is also known as “before-tax income” and is used in calculating an individual’s adjusted gross income for income-tax purposes.

Personnel expenses
Represents salaries and wages paid to employees and officers of an entity, including compensation, employee taxes, benefits, etc.

Place of registration
Registration is the filing process required by law that an entity performs to incorporate its business, or prior to offering a new share issue to the public. The place of registration is generally the principal place of business and the headquarters of the entity.

Planned preventative
A phased schedule of regular property and equipment maintenance and repairs over time.

Prepayment (deferral)
Cash paid in advance for goods or services not yet received or cash revenues received in advance before an entity earns provided services. Prepayments include prepaid expenses and unearned revenues.

Present value
The value on a given date of a future payment or series of future payments discounted at an appropriate interest rate (discount rate) to reflect the time value of money and other factors such as investment risk. The discount rate used is the risk-free interest rate.

Present value of a defined benefit obligation
The present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.

Principal contractor
The appointment of a principal contractor is a statutory requirement under the Construction (Design & Management) Regulations 1994. The principal contractor must be involved in the management of the construction work, must be competent and able to allocate adequate resources to the task.

Pro-active feasibility
One where the client who commissions it requires information to be provided in addition to projections of the return on investment.

Method of obtaining by care and effort the most suitable process of competitively priced element for construction or purchase.

Product building
Where the building form is an integral part of a lifestyle product, such as a hotel.

Profit sharing plan
A plan for distributing a predetermined percentage of an entity’s profits to its employees. The compensation can be shares, bonds, or cash and can be immediate or deferred until retirement.

Provision for guarantees
Estimated liabilities for which amount and timing is uncertain, in relation to guarantees; also called warranty.