Financial liability and Notional pooling: Difference between pages

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''Financial reporting.''
''Banking''. 


IAS 32 defines a financial liability as liability that is any of the following:
The technique used by banks for calculating interest on balances in a notional cash pool.


Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed.


1.
Notional pooling is also referred to as interest offset pooling.
 
A contractual obligation either to:
*Deliver cash or another financial asset to another entity; or
*Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity.
 
 
2.
 
A contract that will or may be settled in the reporting entity's own equity instruments, and is either:
*A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or
*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 reporting entity's own equity instruments.  




== See also ==
== See also ==
* [[Amortised cost]]
* [[Cash pool]]
* [[Equity instrument]]
* [[CertICM]]
* [[Financial asset]]
* [[Cross-guarantees]]
* [[Financial instrument]]
* [[Interest rate enhancement]]
* [[Derivative instrument]]
* [[IAS 32]]
* [[Liabilities]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:Cash_management]]

Revision as of 08:14, 29 November 2014

Banking.

The technique used by banks for calculating interest on balances in a notional cash pool.

Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed.

Notional pooling is also referred to as interest offset pooling.


See also

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