Expected credit loss and Mid-cap: Difference between pages

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imported>Doug Williamson
(Link with Discount Factor page.)
 
imported>Doug Williamson
(Create the page. Sources: FT lexicon and Morningstar http://lexicon.ft.com/Term?term=market-capitalisation, http://www.morningstar.co.uk/uk/news/105769/investing-in-small-mid-and-large-cap-stocks.aspx)
 
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''Financial reporting - impairment of financial assets - IFRS 9''
'Mid-cap' is a measure of a company's size, by its equity market capitalisation.


(ECL).
Definitions of 'mid' differ between markets.


Expected credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes.
For UK listed companies, it is generally considered to be those in the FTSE 250 index, and private companies of similar size.


It is calculated as:


ECL = PD x EAD x LGD x Discount Factor
== See also ==
 
* [[Capitalisation]]
 
* [[FTSE 250]]
Where:
* [[Large-cap]]
 
* [[Small-cap]]
ECL = expected credit loss
 
PD = probability of default
 
EAD = exposure at default
 
LGD = loss given default
 
Discount Factor is based on the expected date of default
 
 
==See also==
*[[Default]]
*[[Discount Factor]]
*[[Exposure At Default]]
*[[Financial asset]]
*[[IFRS 9]]
*[[Impairment]]
*[[Loss Given Default]]
*[[Probability of Default]]

Revision as of 20:35, 11 February 2017

'Mid-cap' is a measure of a company's size, by its equity market capitalisation.

Definitions of 'mid' differ between markets.

For UK listed companies, it is generally considered to be those in the FTSE 250 index, and private companies of similar size.


See also