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F. F1 F2 F3 F4 F5 F6 F7 F8 F9 Fa Fe Fg Fi Fl Fo Fp Fr Fs Ft Fu Fy
Fib Fic Fid Fie Fif Fig Fil Fin Fio Fir Fis Fit Fiv Fix

Final pensionable salary

Defined in the particular pension scheme and calculated in a specified way (e.g. averaged over a limited period prior to the normal retirement date (or earlier date of leaving) or the actual final salary). The pension scheme definition is usually more restrictive than the IR’s final remuneration definition. See FINAL SALARY SCHEME.

Final remuneration (IR definition)

IR definition, more generous than scheme definitions, provides that the final remuneration should be not greater than either: (a) the average total earnings liable to Schedule E tax over three or more consecutive years in the 10 preceding retirement; or (b) basic annual pay of an employee liable to Schedule E tax for any one year of the five preceding retirement plus certain bonuses and commission averaged over a period and benefits in kind. Adjustments can be made using dynamisation. The limit affects how much of a member’s earnings can be taken into account when IR calculates the maximum benefit available under an approved scheme.

Final Report

In temporary disability workers’ compensation cases, the last report submitted by a physician to the insurance company stating the patient is able to return to work. In permanent disability workers’ compensation cases, the last report indicating permanent disability of the patient. Also called Doctor’s Final (or Monthly) Report and Bill .

Final rule

Official release of a requirement or guideline created by the Secretary of Health and Human Services (HHS) to meet a specific law. When a final rule is officially released, entities may begin to use the rule. After a period of implementation, then a compliance deadline is mandated.

Final salary scheme

The main type of defined benefit scheme. The pension is a proportion of final salary based on an accrual rate, e.g. onesixtieth, for each year of scheme membership plus any added years. Forty years produces the maximum allowable pension. Scheme trustees must ensure that contribution levels are sufficient to deliver the pensions promised. Members can commute part of their rights into a tax-free lump seem equal to 1.5 times the final salary. See FINAL PENSIONABLE SALARY; FINAL REMUNERATION.

Financial Accounting Standards Board (FASB)

Designated organization in the private sector for establishing standards of financial accounting and reporting that govern the preparation of financial reports. Founded in 1973, FASB is part of a structure that is independent of all other business and professional organizations. Before the present structure was created, financial accounting and reporting standards were established first by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936-1959) and then by the Accounting Principles Board, also a part of the AICPA (1959-1973). Pronouncements of those predecessor bodies remain in force unless amended or superseded by the FASB. The Board is officially recognized as authoritative by the Securities and Exchange Commission (Financial Reporting Release No. 1, Section 101 and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.
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An independent body, funded by accounting firms, that sets standards that must be followed when preparing financial statements and reports.