IFO4
Loading...The residual claim on an organisation's assets after all liabilities have been satisfied, representing ownership in the firm. Equity is the most expensive form of capital because it bears all residual risk and has no contractual return. The federation requires equity to be reported by class, with attached rights and any unusual provisions disclosed. Stock-based compensation, treasury stock, and accumulated other comprehensive income must be reconciled to the equity roll-forward per MEV-Annex:4.1. Hidden dilution and preferred stock liquidation preferences are treated as material disclosures.
From the Latin aequitas, fairness; the financial sense developed in seventeenth century English chancery practice and entered corporate accounting in the nineteenth century.
Federation members disclose equity by class with full attached rights. Conversion features, ratchets, and liquidation preferences are reportable material features under TGS-002:2.3. Misrepresentation of effective dilution is a Tier-1 conduct violation.
@misc{ifo4_glossary_equity,
title = {{Equity}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{equity}}},
year = {2026},
url = {https://ifo4.org/glossary/equity},
note = {Category: Capital; key: Equity}
}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.