Difference between revisions of "Headroom target"

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* [[IFRS]]
 
* [[IFRS]]
 
* [[Liquidity]]
 
* [[Liquidity]]
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[[Category:The_business_context]]
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[[Category:Identify_and_assess_risks]]
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[[Category:Manage_risks]]
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[[Category:Risk_frameworks]]
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[[Category:Cash_management]]
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[[Category:Financial_products_and_markets]]
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[[Category:Liquidity_management]]

Latest revision as of 20:57, 11 May 2020

Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.

For this reason a headroom target should be set to provide flexibility and to ensure the Directors are able to certify their company as being a Going Concern (under IFRS accounting guidelines) at the end of each financial reporting period.


See also