Mostly positive and Performance bond: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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'Mostly positive' is a sign convention under which:
''Trade finance.''


#The items that there are most of, are designated as positive numbers.
A performance bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.
#Items to be deducted from, or netted off against, the positive items, are negative numbers.


Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.


The purpose of the 'mostly positive' convention is to reduce the number of negative figures in a report, to aid readability and identifying exceptions.
A performance bond can be called by the buyer in the event of any contract delays or defects in the supplier's performance of the contract.




'Mostly positive' is a sign convention used typically for a report of costs or liabilities.
Also known as a ''performance guarantee''.


The costs or liabilities themselves would be positive numbers under this convention.


Under this sign convention, any credits against, or deductions from, the net costs or net liabilities in the report, would be negative numbers.
== See also ==
* [[Bond]]
* [[Call]]
* [[Guarantee]]
* [[Indemnity]]
* [[Performance]]
* [[Retention bond]]
* [[Trade finance]]


 
[[Category:Trade_finance]]
The consequence of adopting the 'mostly positive' sign convention is that most items in the report, or a related sheet in a model, are positive numbers.
 
 
== See also ==
*[[B/(W)]]
*[[Exception]]
*[[Inflow/(outflow)]]
*[[Model]]
*[[Sign convention]]

Revision as of 11:21, 4 April 2021

Trade finance.

A performance bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.

Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.

A performance bond can be called by the buyer in the event of any contract delays or defects in the supplier's performance of the contract.


Also known as a performance guarantee.


See also