Contingent convertible capital and Entity: Difference between pages

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imported>Doug Williamson
(Add links and correct typo.)
 
imported>Doug Williamson
(Expand. Source: Bank for International Settlements Statistical Release, May 2016.)
 
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Contingent convertible capital is made up of hybrid capital securities that, through a conversion mechanism, provide additional capital available to absorb losses when the capital of the issuing institution falls below a certain level. They are generally used by banks in meeting regulatory capital requirements.
#In a commercial context, the business ''entity'' refers to the whole of the business undertaking, regardless of whether it is financed by equity alone or by a combination of equity and debt.  The Entity Value is therefore the total value of the Equity plus the Debt.  In this context the entity is also sometimes known as the Enterprise (and the entity value as the Enterprise Value).
#''Financial reporting''.  The reporting unit for which financial information is summarised and presented.  For example a company or a group of companies.
#''Tax''.  A business unit which is subject to taxation.  For example a company or a branch of a company established in another country.
#More broadly, any corporation, organisation or person that exists as a separately identifiable unit. Evidence of being 'separately identifiable' would include the ability to produce a meaningful and complete set of financial reporting information if it were required.


"Contingent convertible capital securities" is frequently and conveniently abbreviated to "CoCos".


The [[BIS]]'s quarterly report of September 2013 has a useful [http://www.bis.org/publ/qtrpdf/r_qt1309f.pdf primer] on CoCos.
== See also ==
* [[Debt]]
* [[Equity]]
* [[Corporate value]]
* [[Concentration]]


 
[[Category:Accounting,_tax_and_regulation]]
==See also==
[[Category:Corporate_finance]]
*[[BIS]]
*[[Capital]]
*[[Capital adequacy]]
*[[Hybrid]]
*[[PLAC]]
*[[Principal write down]]

Revision as of 08:15, 5 May 2016

  1. In a commercial context, the business entity refers to the whole of the business undertaking, regardless of whether it is financed by equity alone or by a combination of equity and debt. The Entity Value is therefore the total value of the Equity plus the Debt. In this context the entity is also sometimes known as the Enterprise (and the entity value as the Enterprise Value).
  2. Financial reporting. The reporting unit for which financial information is summarised and presented. For example a company or a group of companies.
  3. Tax. A business unit which is subject to taxation. For example a company or a branch of a company established in another country.
  4. More broadly, any corporation, organisation or person that exists as a separately identifiable unit. Evidence of being 'separately identifiable' would include the ability to produce a meaningful and complete set of financial reporting information if it were required.


See also