Insolvency and Offset: Difference between pages

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1.
1.


Inability to pay financial obligations as they fall due.
Ability to set assets against liabilities in multiple bank accounts.  


Also used in netting transactions.


2. ''UK law''.


The inability of a company - on a balance of probabilities - to meet all of its existing, prospective and contingent liabilities, taking account of future costs and of future interest obligations.
2.


In making this assessment, future income and future asset valuations are also taken into account.
More generally, the right to reduce or eliminate a liability, by deducting the amount of a related asset. 
 
Most commonly, when the asset and liability are with the same counterparty.
 
 
3.
 
More generally still, the netting of any items, whether or not any positive action is needed to cause the netting.
 
For example, the netting of inflation differentials and expected changes in spot foreign exchange rates under purchasing power parity theory.
 
 
4. ''Environmental concerns''.
 
Abbreviation for carbon offsetting.




== See also ==
== See also ==
* [[Balance sheet insolvent]]
* [[Assets]]
* [[Bankruptcy]]
* [[Carbon offsetting]]
* [[Cash flow insolvent]]
* [[Counterparty]]
* [[Chapter 11]]
* [[Escrow]]
* [[Company voluntary arrangement]]
* [[Exchange rate]]
* [[Corporate Insolvency and Governance Act]]
* [[Inflation]]
* [[Cost of financial distress]]
* [[Interest offset pooling]]
* [[Creditors]]
* [[Liabilities]]
* [[Individual Voluntary Arrangement]]
* [[Netting]]
* [[Insolvency Act]]
* [[Open interest]]
* [[Insolvency costs]]
* [[Spot]]
* [[Insolvency practitioner]]
* [[Insolvency Service]]
* [[Liquidity]]
* [[London Approach]]
* [[Scheme of arrangement]]
* [[Solvency]]
* [[Solvency II]]
* [[Statement of affairs]]
* [[Voluntary liquidation]]


[[Category:Long_term_funding]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 21:56, 4 March 2022

1.

Ability to set assets against liabilities in multiple bank accounts.

Also used in netting transactions.


2.

More generally, the right to reduce or eliminate a liability, by deducting the amount of a related asset.

Most commonly, when the asset and liability are with the same counterparty.


3.

More generally still, the netting of any items, whether or not any positive action is needed to cause the netting.

For example, the netting of inflation differentials and expected changes in spot foreign exchange rates under purchasing power parity theory.


4. Environmental concerns.

Abbreviation for carbon offsetting.


See also

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