Prepayments and RFR: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
(Recognise that RFRs are not entirely risk-free.)
 
Line 1: Line 1:
''Accounting''.  
Risk-Free Rate.
Amounts owing to the business as a result of paying in advance for services. 


A prepayment is a form of asset, because it represents benefits (in the form of valuable services) that the business is entitled to receive in the future, in consideration for cash that the business has already paid out.
The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.


== See also ==
Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.
* [[Accrual]]


Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
==See also==
*[[Capital asset pricing model]]
*[[RFR WG]]
*[[Risk-free rate of return]]
*[[Risk-free rates]]
*[[SONIA]]
[[Category:Corporate_financial_management]]
[[Category:Financial_products_and_markets]]

Revision as of 18:33, 1 December 2018

Risk-Free Rate.

The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.

Also known as near risk-free rates, recognising that such rates are never entirely risk-free.


Theoretically risk free rates of investment return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.


See also