Hire purchase and Historic: Difference between pages

Revision as of 14:48, 29 October 2020

Measures based on actual past data, rather than forecast future data.

For example the historic dividend yield is normally based on the most recent past dividend.

(As opposed to the prospective dividend yield which is normally based on the next forecast future dividend.)

Another example is the historic Price to earnings ratio (PER) which is normally based on the earnings for the most recent past period.

(As opposed to the prospective PER which is normally based on the projected earnings for the nearest future forecast period.)

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-(HP).
+Measures based on actual past data, rather than forecast future data.
-Hire purchase is similar to a finance lease except that it contains a provision giving the hirer an option to acquire legal title to the asset (once certain contract provisions are fulfilled).
-A mechanism for gaining the benefits of owning an asset without paying the whole of the purchase price at the outset, but over a period of time.
+For example the historic dividend yield is normally based on the most recent past dividend.
+(As opposed to the prospective dividend yield which is normally based on the next forecast future dividend.)
-Relevant accounting standards include IFRS 16 and Section 20 of FRS 102.
+Another example is the historic Price to earnings ratio (PER) which is normally based on the earnings for the most recent past period.
+(As opposed to the prospective PER which is normally based on the projected earnings for the nearest future forecast period.)
 == See also ==
-* [[Assets]]
+* [[Dividend yield]]
-* [[Finance lease]]
+*[[Historical cost]]
-* [[FRS 102]]
+* [[Historical cost accounting]]
-* [[IFRS 16]]
+* [[Price to earnings ratio]]
-[[Category:Trade_finance]]