Funds transfer pricing and IFRIC: Difference between pages

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''Banking''.
''Financial reporting''.


(FTP).
IFRIC is an acronym for 'International Financial Reporting Interpretations Committee', the former name of the International Financial Reporting Standards Interpretations Committee (IFRS Interpretations Committee).


Funds transfer pricing deals with the internal prices for funding, within a bank.
'IFRIC' is also a name for a published interpretation of an international accounting standard.


FTP methodologies are important because they affect a bank’s internal profit allocation, and thereby influence business lines’ activities and appetite for risk.
For example, IFRIC 4, relating to accounting for leases.




For example, if a bank's FTP leads to a lending unit's funding costs being underestimated, the lending unit may offer cheaper loans to customers - and expand lending volumes - in the mistaken belief that this lending is profitable.
== See also ==
* [[IFRIC 4]]
* [[IFRIC 14]]
* [[IFRIC 22]]
* [[IFRS Interpretations Committee]]
* [[International Financial Reporting Interpretations Committee]]


 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
* [[IRRBB]]
* [[Transfer price]]

Revision as of 14:18, 21 March 2018

Financial reporting.

IFRIC is an acronym for 'International Financial Reporting Interpretations Committee', the former name of the International Financial Reporting Standards Interpretations Committee (IFRS Interpretations Committee).

'IFRIC' is also a name for a published interpretation of an international accounting standard.

For example, IFRIC 4, relating to accounting for leases.


See also