Intangible assets and SONIA: Difference between pages

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imported>Doug Williamson
(Add examples of recognising the asset.)
 
imported>Doug Williamson
m (Link with RFR WG page.)
 
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1. ''Accounting''.
''Interest rate benchmarks''.
For accounting purposes, intangible assets are ones that are considered to be long-term assets but are intangible in nature, such as the value of patents and goodwill generated by the business.


Sterling Overnight Index Average. 


The principles for including this kind of intangible asset in an accounting balance sheet are that the asset must:


1. Have a cost that can be reliably measured; AND
Tracks actual average market sterling funding rates each day:
*for settlement that day
*where repayment is made on the following business day.  


2. Be likely to give rise to future economic benefits.


It is published by WMBA Ltd (part of the European Venues and Intermediaries Association - EVIA) in London at 5pm each day.


The accounting term for including such an item in a balance sheet is 'recognising' the asset.


It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by EVIA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.


<span style="color:#4B0082">'''''Examples of recognising:'''''</span>


'''1. Orderbook'''
The Bank of England assumed responsibility as the administrator of a revised SONIA with effect from April 2018.


:Not recognised, because it does not have a cost that can be reliably measured.
Among other changes, SONIA was broadened to include overnight unsecured transactions negotiated bilaterally, as well as those arranged via brokers.




'''2.  Employees'''
== See also ==
 
* [[Benchmark]]
:Not normally recognised, because there is not a cost that can be reliably measured.
* [[Euro Overnight Index Average ]]
 
* [[EURONIA]]
:Exceptions include star footballers, that have been bought. The transfer fees and other costs paid are recognised as intangible assets.
* [[European Venues and Intermediaries Association]]
 
* [[Financial Stability Board]]
* [[LIBOR]]
* [[Over night index average rate]]
* [[Overnight indexed swap]]
* [[RFR WG]]
* [[Risk-free rates]]
* [[SARON]]
* [[Sterling overnight index average]]
* [[TONAR]]
* [[The Working Group on Sterling Risk-Free Reference Rates]]


'''3. Intellectual property'''


:If it has been bought, Yes.
===Other links===


:If it is internally generated, No.
[[Media:Slaughter and May interest rate benchmarks.pdf| 2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May]]


[[Media:The_Treasurer_-_LIBOR_-_Goodbye_to_all_that.pdf| LIBOR: Goodbye to all that, The Treasurer]]


[http://www.bankofengland.co.uk/markets/benchmarks Bank of England: SONIA and other benchmarks]


Relevant accounting standards include IAS 38 and Sections 18 and 19 of FRS 102.
[https://www.evia.org.uk/ European Venues and Intermediaries Association - EVIA]
 
 
2.
 
More broadly, any non-physical asset, whether it is a short-term asset or a longer-term one.
 
 
== See also ==
* [[Amortise]]
* [[Assets]]
* [[Balance sheet]]
* [[Financial reporting]]
* [[Fixed assets]]
* [[Gearing]]
* [[Goodwill]]
* [[IAS 38]]
* [[FRS 102]]
* [[Intellectual property]]
* [[Net worth]]
* [[Patent]]
* [[Recognition]]
* [[Research & development]]
* [[Tangible asset]]
* [[Tangible net worth]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 15:01, 9 July 2018

Interest rate benchmarks.

Sterling Overnight Index Average.


Tracks actual average market sterling funding rates each day:

  • for settlement that day
  • where repayment is made on the following business day.


It is published by WMBA Ltd (part of the European Venues and Intermediaries Association - EVIA) in London at 5pm each day.


It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by EVIA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.


The Bank of England assumed responsibility as the administrator of a revised SONIA with effect from April 2018.

Among other changes, SONIA was broadened to include overnight unsecured transactions negotiated bilaterally, as well as those arranged via brokers.


See also


Other links

2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May

LIBOR: Goodbye to all that, The Treasurer

Bank of England: SONIA and other benchmarks

European Venues and Intermediaries Association - EVIA

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