IFO4
Loading...The composition of an organisation's permanent financing, expressed as the proportion of debt and equity in the funding mix. Capital structure decisions trade off the tax shield of debt against the financial distress costs of leverage. The federation does not prescribe a target capital structure but requires the structure to be disclosed quarterly with a stated target leverage band and any material deviations footnoted. Capital structure changes that move the leverage ratio outside the disclosed band are reportable as material events under TGS-002:2.3.
A coinage of the mid twentieth century corporate finance literature; the term entered general management vocabulary via the Modigliani Miller framework.
Federation members publish a target leverage band and report quarterly against it. Movements outside the band are footnoted with remediation timing under MEV-Annex:4.1. Steward tier members are expected to maintain a documented capital structure policy.
@misc{ifo4_glossary_capital_structure,
title = {{Capital Structure}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{capital-structure}}},
year = {2026},
url = {https://ifo4.org/glossary/capital-structure},
note = {Category: Capital; key: CapitalStructure}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.