Financial asset and Net credit/debit position: Difference between pages

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A financial asset is an asset whose value is dependent on the obligation of another person or entity.
''Netting systems''.  


A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent. 


IAS 32 defines a financial asset as an asset that is <u>any of</u> the following:
If the difference is positive, the participant is in net credit position. 


If the difference is negative, then the participant is in a net debit position.


:'''1.''' Cash; <u>or</u>


The net credit or net debit position at settlement time is defined as the net settlement position. 


:'''2.''' An equity instrument of another entity; <u>or</u>
These net positions may be calculated on a bilateral or multilateral basis.
 
 
:'''3.''' A contractual right to:
:*Receive cash or another financial asset from another entity; <u>or</u>
:*Exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the reporting entity; <u>or</u>
 
 
:'''4.''' A contract that will or may be settled in the reporting entity's own equity instruments and is <u>either</u>:
:*A non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments; <u>or</u>
:*A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.




== See also ==
== See also ==
* [[Amortised cost]]
* [[Credit]]
* [[Assets]]
* [[Debit]]
* [[Entity]]
* [[Netting]]
* [[Equity instrument]]
* [[Financial instrument]]
* [[Financial liability]]
* [[IAS 32]]
* [[Reporting entity]]
 
[[Category:Accounting,_tax_and_regulation]]

Revision as of 21:18, 10 April 2015

Netting systems.

A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.

If the difference is positive, the participant is in net credit position.

If the difference is negative, then the participant is in a net debit position.


The net credit or net debit position at settlement time is defined as the net settlement position.

These net positions may be calculated on a bilateral or multilateral basis.


See also