imported>Doug Williamson |
imported>Administrator |
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| (BS).
| | ''Credit transfer.'' |
| | An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day. |
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| 1.
| | Daylight credit may be extended by central banks to even out mismatches in the settlement of payments. |
| One of the primary statements of a reporting entity's financial accounts.
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| The balance sheet lists the assets, liabilities and shareholders’ funds at the balance sheet date.
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| Under the 'double entry' accounting convention, assets are Debits (DR) and liabilities and shareholders' funds are Credits (CR).
| | In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order even though it will not receive final funds until the end of the business day. |
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| The standard UK balance sheet presentation for external reporting is Net Assets = Shareholders' Funds.
| | Also known as Daylight overdraft, Daylight exposure, or Intra-day credit. |
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| The Net assets part of the balance sheet is sometimes called the 'top half'.
| | == See also == |
| The Shareholders' funds part being the 'bottom half'.
| | * [[Credit]] |
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| For example in summary:
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| <pre>
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| TOP HALF:
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| Assets 100 DR
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| - Liabilities (20) CR
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| = Net assets 80 DR | |
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| BOTTOM HALF:
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| Shareholders’ funds 80 CR
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| </pre>
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| (Total shareholders' funds being appropriately detailed in turn into share capital and reserves, as well as the individual assets and liabilities being appropriately listed in fuller detail.)
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| The balance sheet equation in summary using the convention above is 80 = 80.
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| 2.
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| There are many other ways to present this information in other balance sheet formats.
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| Alternative balance sheet conventions maintain the balanced/double-entry principle, but may show for example:
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| Total Assets = Total Liabilities + Shareholders' Funds.
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| Presented on this alternative (assets = liabilities) basis, using the same summary figures:
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| <pre>
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| TOP HALF:
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| Total assets 100 DR
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| BOTTOM HALF:
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| Total liabilities 20 CR
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| + Shareholders’ funds 80 CR
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| = Total liabilities & shareholders’ funds 100 CR
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| </pre>
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| The same balance sheet information has now been presented as 100 = 100, using the alternative convention.
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| The Total liabilities of 20 CR are now presented in the bottom half of the balance sheet (rather than in the top half as before).
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| The choice of presentation will depend on the purposes for which the balance sheet information is required, together with any rules or conventions applying to the entity's external reporting.
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| == See also ==
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| * [[Assets]]
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| * [[Balance sheet exposure]]
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| * [[Cashflow statement]]
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| * [[Credit balance]]
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| * [[Current/non-current method]]
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| * [[Debit balance]]
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| * [[Double entry]]
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| * [[Event after the balance sheet date]]
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| * [[Financial statements]]
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| * [[Income statement]]
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| * [[Liabilities]]
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| * [[Off balance sheet]]
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| * [[Off-balance sheet finance]]
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| * [[Post balance sheet event]]
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| * [[Profit and Loss account]]
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| * [[Share capital]]
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| * [[Shareholders’ funds]]
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| * [[Short term]]
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| * [[Statement of financial position]]
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Credit transfer.
An intra-day exposure of a bank when account is in an overdraft position at any time during the business day vis-à-vis credit extended for a period of less than one business day.
Daylight credit may be extended by central banks to even out mismatches in the settlement of payments.
In a credit transfer system with end-of-day final settlement, daylight credit is tacitly extended by a receiving institution if it accepts and acts on a payment order even though it will not receive final funds until the end of the business day.
Also known as Daylight overdraft, Daylight exposure, or Intra-day credit.
See also
