EMIR and Goodwill: Difference between pages

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imported>Doug Williamson
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European Market Infrastructure Regulation<ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:201:0001:0059:EN:PDF</ref> (EMIR) came into force as binding law within the European Union on 16th August 2012, although certain of its requirements came into force after a period of delay.
1. ''Intangible assets - financial reporting.''


The objective of EMIR is to reduce the risks posed to financial systems from the vast web of [[Over the counter]] (OTC) derivative transactions and the contingent large credit exposures that may arise as a consequence. The Regulation achieves this object by three significant requirements for:
Goodwill is an intangible asset representing the additional premium - in excess of the value of net assets - paid to acquire control of a business.  


• Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
Also known as positive goodwill.


• Reporting of all derivative transactions to a trade repository


• Risk mitigation measures for all non cleared derivatives including collateral exchange and  confirmation and reconciliation procedures
2. ''Financial reporting - consolidated accounts.''


The excess of the total book value of the whole business, above the net value of its individual assets and liabilities.


== See also ==
Relevant accounting standards include Sections 18, 19 and 27 of FRS 102.
* [[ESMA]]
 
 
3. ''Intangible assets - reputational risk management.''
 
The positive reputation of a business.


It can sometimes be estimated as the difference between the market value of a business and its adjusted book value.


==External links==
ACT briefing note: European regulation of OTC derivatives: Implications for non-financial companies http://www.treasurers.org/otc


== See also ==
* [[Acquisition accounting]]
* [[Book value]]
* [[Consolidated group accounts]]
* [[Financial reporting]]
* [[FRS 102]]
* [[Goodwill on consolidation]]
* [[Impairment]]
* [[Intangible assets]]
* [[Market value]]
* [[Negative goodwill]]
* [[Net assets]]
* [[Reputational risk]]
* [[Research & development]]


==References==
[[Category:Accounting,_tax_and_regulation]]
<references />
[[Category:Corporate_finance]]

Revision as of 05:15, 17 January 2022

1. Intangible assets - financial reporting.

Goodwill is an intangible asset representing the additional premium - in excess of the value of net assets - paid to acquire control of a business.

Also known as positive goodwill.


2. Financial reporting - consolidated accounts.

The excess of the total book value of the whole business, above the net value of its individual assets and liabilities.

Relevant accounting standards include Sections 18, 19 and 27 of FRS 102.


3. Intangible assets - reputational risk management.

The positive reputation of a business.

It can sometimes be estimated as the difference between the market value of a business and its adjusted book value.


See also