Margin and Reconciliation: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Expand 2nd definition.)
 
Line 1: Line 1:
1.  
1. ''Cash management and accounting''.  


''Accounting''.  
A reconciliation is any quantified explanation of the differences between two related amounts.


Profit margin measures the surplus of revenues over relevant costs, often expressed as a percentage.
Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.




2.  
A very important example is the reconciliation of bank statement balances with the amounts in the customer organisation's internal records.


''Bank lending''.


Lending margin is a percentage amount added to a market reference rate, to calculate the total rate of interest payable by a borrower.
Another common accounting example is the reconciliation of reported operating profit to net operating cash flows.


This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period. 


3.  
Each item contributing to the net difference is quantified within the reconciliation statement.


''Derivatives markets''.


Margin is a refundable cash deposit payable by market participants to protect other participants in the market against the risk of a default.
Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.




4.


''Financing''.
2.  


An amount built in to an interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
An example of a reconciliation is a quantified explanation of the ''change'' in any balance, over a time period.




5.
''Sometimes abbreviated to 'rec'.''


''Secured lending''.


An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
== See also ==
 
* [[Accounting records]]
Also known as a 'haircut'.
* [[Bank reconciliation]]
* [[Cash flow]]
* [[Cash management]]
* [[Conciliation]]
* [[Full reconciliation]]
* [[Profit]]
* [[Tax reconciliation]]
* [[Variance analysis]]


 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
* [[Collateral]]
* [[Futures]]
* [[Haircut]]
* [[Initial margin]]
* [[Maintenance margin]]
* [[Margin call]]
* [[Margin risk]]
* [[Stepped margin]]
* [[Tax sparing]]
* [[Variation margin]]
* [[WGMR]]

Revision as of 13:26, 19 January 2022

1. Cash management and accounting.

A reconciliation is any quantified explanation of the differences between two related amounts.

Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.


A very important example is the reconciliation of bank statement balances with the amounts in the customer organisation's internal records.


Another common accounting example is the reconciliation of reported operating profit to net operating cash flows.

This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period.

Each item contributing to the net difference is quantified within the reconciliation statement.


Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.


2.

An example of a reconciliation is a quantified explanation of the change in any balance, over a time period.


Sometimes abbreviated to 'rec'.


See also