Headroom - Revision history

imported>Doug Williamson: Add link.

2020-05-11T20:56:35Z

Add link.

← Older revision		Revision as of 20:56, 11 May 2020
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	* [[Financial covenant]]		* [[Financial covenant]]
	* [[Going concern]]		* [[Going concern]]
			* [[Headroom target]]
	* [[Rights issue]]		* [[Rights issue]]

	[[Category:Corporate_financial_management]]		[[Category:Corporate_financial_management]]

imported>Doug Williamson: Layout.

2020-05-11T20:54:46Z

Layout.

← Older revision		Revision as of 20:54, 11 May 2020
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	1. <i>Borrowing facilities</i>		1. <i>Borrowing facilities.</i>

	The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.		The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
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	2. <i>Equity</i>		2. <i>Equity.</i>

	An amount of authorised but unissued equity shares.		An amount of authorised but unissued equity shares.


	3. <i>Borrowings documentation</i>		3. <i>Borrowings documentation.</i>

	The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.		The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.


	4. <i>Trading limits</i>		4. <i>Trading limits.</i>

	The difference between the current level of a trading position and the trading limit.		The difference between the current level of a trading position and the trading limit.

imported>Doug Williamson: Layout.

2020-05-11T20:54:17Z

Layout.

← Older revision		Revision as of 20:54, 11 May 2020
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	1.		1. <i>Borrowing facilities</i>

	<i>Borrowing facilities</i>

	The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.		The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
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	2.		2. <i>Equity</i>

	<i>Equity</i>

	An amount of authorised but unissued equity shares.		An amount of authorised but unissued equity shares.


	3.		3. <i>Borrowings documentation</i>

	<i>Borrowings documentation</i>

	The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.		The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.


	4.		4. <i>Trading limits</i>

	<i>Trading limits</i>

	The difference between the current level of a trading position and the trading limit.		The difference between the current level of a trading position and the trading limit.


	5.		5. More generally, any measure of financial or operational flexibility, or safety margin.

	More generally, any measure of financial or operational flexibility, or safety margin.

imported>Doug Williamson: Remove surplus link.

2019-02-09T20:28:47Z

Remove surplus link.

← Older revision		Revision as of 20:28, 9 February 2019
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	* [[Financial covenant]]		* [[Financial covenant]]
	* [[Going concern]]		* [[Going concern]]
	* [[MCT]]
	* [[Rights issue]]		* [[Rights issue]]

	[[Category:Corporate_financial_management]]		[[Category:Corporate_financial_management]]

imported>Doug Williamson: Categorise.

2018-02-21T11:37:39Z

Categorise.

← Older revision		Revision as of 11:37, 21 February 2018
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	* [[MCT]]		* [[MCT]]
	* [[Rights issue]]		* [[Rights issue]]

			[[Category:Corporate_financial_management]]

imported>Doug Williamson: Layout.

2016-11-16T21:25:32Z

Layout.

← Older revision		Revision as of 21:25, 16 November 2016
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	1.		1.

	<i>Borrowing facilities</i>.		<i>Borrowing facilities</i>

	The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.		The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
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	2.		2.

	<i>Equity</i>.		<i>Equity</i>

	An amount of authorised but unissued equity shares.		An amount of authorised but unissued equity shares.
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	3.		3.

	<i>Borrowings documentation</i>.		<i>Borrowings documentation</i>

	The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.		The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.
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	4.		4.

	<i>Trading limits</i>.		<i>Trading limits</i>

	The difference between the current level of a trading position and the trading limit.		The difference between the current level of a trading position and the trading limit.

imported>Doug Williamson: Layout.

2016-06-08T15:13:52Z

Layout.

← Older revision		Revision as of 15:13, 8 June 2016
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	The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.		The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
	Note that headroom is a term that can have more than one meaning and - here as elsewhere - it is important to be clear about the definition in its particular context.
			Note that 'headroom' is a term that can have more than one meaning and - here as elsewhere - it is important to be clear about the definition in its particular context.

	(i) Often when treasurers talk about headroom, they mean the total amount of undrawn committed facilities. <br>		(i) Often when treasurers talk about headroom, they mean the total amount of undrawn committed facilities. <br>
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	Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.		Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.

	For this reason a <i>headroom target</i> should be set to provide flexibility and to ensure the Directors are able to certify their company as being a Going Concern (under IFRS accounting guidelines) at the end of each financial reporting period.		For this reason a <i>headroom target</i> should be set to provide flexibility and to ensure the Directors are able to certify their company as being a Going Concern (under IFRS accounting guidelines) at the end of each financial reporting period.

imported>Doug Williamson: Layout.

2016-05-11T13:49:36Z

Layout.

← Older revision		Revision as of 13:49, 11 May 2016
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	Note that headroom is a term that can have more than one meaning and - here as elsewhere - it is important to be clear about the definition in its particular context.		Note that headroom is a term that can have more than one meaning and - here as elsewhere - it is important to be clear about the definition in its particular context.

	(i) Often when treasurers talk about headroom, they mean the total amount of undrawn committed facilities.		(i) Often when treasurers talk about headroom, they mean the total amount of undrawn committed facilities. <br>
			(ii) Sometimes they include uncommitted facilities as well. <br>
			(iii) They take different views on whether or not they add cash balances to their headroom figure.

	~~(ii) Sometimes they include uncommitted facilities as well.~~

	~~(iii) They take different views on whether or not they add cash balances to their headroom figure.~~

	Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.		Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.

imported>Doug Williamson: Link with MCT page.

2014-11-22T16:01:44Z

Link with MCT page.

← Older revision		Revision as of 16:01, 22 November 2014
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	* [[Financial covenant]]		* [[Financial covenant]]
	* [[Going concern]]		* [[Going concern]]
			* [[MCT]]
	* [[Rights issue]]		* [[Rights issue]]

imported>Doug Williamson: Spacing 27/8/13

2013-08-27T11:19:37Z

Spacing 27/8/13

← Older revision		Revision as of 11:19, 27 August 2013
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	1. <i>Borrowing facilities</i>.		1.

			<i>Borrowing facilities</i>.

	The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.		The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
Line 14:		Line 16:


	2. <i>Equity</i>.		2.

			<i>Equity</i>.

	An amount of authorised but unissued equity shares.		An amount of authorised but unissued equity shares.


	3. <i>Borrowings documentation</i>.		3.

			<i>Borrowings documentation</i>.

	The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.		The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.


	4. <i>Trading limits</i>.		4.

			<i>Trading limits</i>.

	The difference between the current level of a trading position and the trading limit.		The difference between the current level of a trading position and the trading limit.
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	5.		5.

	More generally, any measure of financial or operational flexibility, or safety margin.		More generally, any measure of financial or operational flexibility, or safety margin.


	== See also ==		== See also ==