Fair value and Position netting: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Category added 9/10/13 and spacing)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
1.
The netting of instructions relating to obligations between two or more parties, as a result of which neither satisfies nor discharges those original individual obligations.


The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
Also known as Advisory netting.
 
 
2.
 
More specifically, the price at which an asset can be bought or sold in transparent markets, where contracting parties are informed and act in their best interest.  It represents the theoretical equilibrium price of securities or derivatives on open markets, for example,  both buyers and sellers do not perceive them as overpriced or under-priced.
 
 
3. ''Financial reporting.'' 
 
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 
: Also known as Fair market value.


This is also referred to as payment netting in the case of payment orders.


== See also ==
== See also ==
* [[Assets]]
* [[Netting]]
* [[FRS  7]]
* [[Payment netting]]
* [[IFRS 13]]
* [[Liabilities]]


[[Category:Corporate_finance]]

Revision as of 14:20, 23 October 2012

The netting of instructions relating to obligations between two or more parties, as a result of which neither satisfies nor discharges those original individual obligations.

Also known as Advisory netting.

This is also referred to as payment netting in the case of payment orders.

See also


Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Fair_value&oldid=37781’