imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''External.''
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| Financial reporting is traditionally external.
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| It is concerned with collating and providing information to external stakeholders, the financial markets and the public.
| | A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options: |
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| Contrasted with management accounting, which provides information for internal stakeholders.
| | #An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. This is the Lender's option. |
| | #A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond. This is the Borrower’s option. |
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| | LOBOs have been issued for maturities of up to 50 years. |
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| :<span style="color:#4B0082">'''''The objective of financial reporting - International Financial Reporting Standards overview'''''</span>
| | Each of the two embedded options can be complex to value with precision, potentially making the composite borrowing instrument difficult for some less sophisticated borrowers to evaluate. |
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| :The users of financial information need to assess:
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| :*Prospects for future net cash inflows to the reporting entity; and
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| :*Management's stewardship of the entity's economic resources.
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| :Accordingly, financial reporting seeks to provide information about:
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| :*The entity's economic resources (assets), claims against the entity (liabilities) and changes in those resources and claims; and
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| :*How efficiently and effectively management has discharged its responsibilities to use the entity's economic resources.
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| External reporting is mandatory for all limited liability companies, regardless of who owns them.
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| However, smaller and privately owned companies do have relatively lighter (mandatory) reporting requirements.
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| All companies may choose to publish more than the minimum mandatory information.
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| Financial reporting is also known as ''financial accounting''.
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| 2. ''Internal.''
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| The term 'financial reporting' is also used by some organisations in a broader sense, to include internal reporting (as well as external).
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| | Also written 'Lender's Option Borrower's Option'. |
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| == See also == | | == See also == |
| * [[10-K]] | | * [[Interest]] |
| * [[10-Q]] | | * [[Option]] |
| * [[Accounting]]
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| * [[Accounts]]
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| * [[Annual report]]
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| * [[Assets]]
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| * [[Audit]]
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| * [[Audit, Reporting and Governance Authority]]
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| * [[Balance]]
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| * [[Balance sheet]]
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| * [[Boilerplate]]
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| * [[Book]]
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| *[[Cash]]
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| *[[Cash balance]]
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| *[[Cash flow]]
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| * [[Cash flow statement]]
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| * [[Closing exchange rate]]
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| * [[Company]]
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| * [[Conceptual framework]]
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| * [[Credit]]
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| * [[Entity]]
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| * [[Environmental profit and loss]]
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| * [[Equity]]
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| *[[False accounting]]
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| * [[Finance]]
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| * [[Financial accounting]]
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| * [[Financial planning and analysis]]
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| * [[Financial Reporting Council]]
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| * [[Fiscal]]
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| * [[Income statement]]
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| * [[Incremental]]
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| * [[International Financial Reporting Standards]] (IFRS)
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| * [[Liabilities]]
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| * [[Limited liability company]]
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| * [[Management accounting]]
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| * [[Management efficiency ratio]]
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| * [[Operating segment]]
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| * [[Performance]]
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| * [[Position]]
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| * [[Primary statements]]
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| * [[Private company]]
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| * [[Reportable segment]]
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| * [[Shareholder]]
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| * [[Small and Medium-sized Enterprises]]
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| * [[Stakeholder]]
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| * [[Statement of changes in equity]]
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| * [[Statement of comprehensive income]]
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| * [[Stewardship]]
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| * [[Sustainability Accounting Standards Board]] (SASB)
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| * [[Sustainability reporting]]
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| * [[Sustainable Finance Disclosure Regulation]] (SFDR)
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| * [[Useful financial information]]
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| * [[Value Reporting Foundation]] (VRF)
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Long_term_funding]] |
(LOBO).
A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:
- An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. This is the Lender's option.
- A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond. This is the Borrower’s option.
LOBOs have been issued for maturities of up to 50 years.
Each of the two embedded options can be complex to value with precision, potentially making the composite borrowing instrument difficult for some less sophisticated borrowers to evaluate.
Also written 'Lender's Option Borrower's Option'.
See also
