Liabilities and Zero cost: Difference between pages

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1. ''Financial reporting - balance sheet''.
1. A ''zero cost collar'' is an options hedging structure which has a zero net premium payable by the hedging entityThe profit for the provider - and the true cost for the hedger - is built in to the related strike prices of the options, from which the collar is constructed.
 
In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:
 
* The transfer or use of assets, for example payments of money
* The provision of services or
* Other yielding of economic benefits in the future.
 
Examples include overdrafts, trade payables, accruals and provisions.
 
 
Liabilities are represented in the balance sheet by credit balances.
 
 
2. ''Lending - borrowing.''
 
More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).


2. Any structure which has no cost, or which may appear to have no cost.


== See also ==
== See also ==
* [[Accrual]]
* [[Collar hedge]]
* [[Assets]]
* [[Balance sheet]]
* [[Capital]]
* [[Compound instrument]]
* [[Credit balance]]
* [[Disaggregation]]
* [[Equity]]
* [[Exemption clause]]
* [[Fair value]]
* [[Financial liability]]
* [[Financial reporting]]
* [[Indemnity clause]]
* [[Interest gap]]
* [[Liabilities and equity]]
* [[Mismatch]]
* [[Net assets]]
* [[Net worth]]
* [[Off balance sheet finance]]
* [[Offset]]
* [[Overdraft]]
* [[Provision]]
* [[Reporting entity]]
* [[Trade payables]]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 14:21, 23 October 2012

1. A zero cost collar is an options hedging structure which has a zero net premium payable by the hedging entity. The profit for the provider - and the true cost for the hedger - is built in to the related strike prices of the options, from which the collar is constructed.

2. Any structure which has no cost, or which may appear to have no cost.

See also