Credit risk and Current cost accounting: Difference between pages

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1.
''Financial reporting.''


The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. 
A basis of valuation in published financial statements drawing mainly on replacement cost accounting techniques but also on net realisable values and economic values.
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
 
 
2.
 
A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.


Its purpose was to adjust for the effects of inflation on the historic costs of balance sheet items by bringing all items within the accounts to present day values.


== See also ==
== See also ==
* [[Banker's payment]]
* [[Historical cost accounting]]
* [[Counterparty risk]]
* [[Covenant]]
* [[Credit default swap]]
* [[Credit derivative]]
* [[Credit exposure]]
* [[Capital risk]]
* [[Event risk]]
* [[Exchange-for-value system]]
* [[MCT]]
* [[Pre-settlement risk]]
* [[Price risk]]
* [[Prime bank]]
* [[Principal risk]]
* [[Replacement cost risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[Putting a limit on losses]]
 
 
===Other links===
[http://www.treasurers.org/node/4351 Credit risk, Will Spinney, ACT 2008]
 
[[Category:Manage_risks]]

Revision as of 13:01, 5 August 2013

Financial reporting.

A basis of valuation in published financial statements drawing mainly on replacement cost accounting techniques but also on net realisable values and economic values.

Its purpose was to adjust for the effects of inflation on the historic costs of balance sheet items by bringing all items within the accounts to present day values.

See also

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