Prepayment: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: linked pages.) |
imported>Doug Williamson (Expand definition. Sources: linked pages.) |
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An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet. | An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet. | ||
It is a prepaid expense. | |||
== See also == | == See also == | ||
* [[Accrual]] | |||
* [[Average effective maturity]] | |||
* [[Bookkeeping]] | |||
* [[Early Repayment Charge]] | |||
* [[Extension risk]] | * [[Extension risk]] | ||
* [[Prepayment risk]] | * [[Prepayment risk]] | ||
* [[Prepayments]] | * [[Prepayments]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
Revision as of 10:22, 28 July 2020
1. Banking.
The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.
2. Accounting.
An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.
It is a prepaid expense.
