Book value and Liikanen Report: Difference between pages

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imported>Doug Williamson
(Add non-accounting definition.)
 
imported>Doug Williamson
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1. ''Accounting.''
A European Union proposal for a regulation to stop the largest banks from engaging in proprietary trading (comparable with the Volcker Rule in the US Dodd-Frank Act).


The value as recorded in a company’s books, in other words its accounts including its published balance sheet.
The proposals for the EU would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business, if the pursuit of such trading activities were deemed to compromise financial stability.




Historically, the book value of an asset was generally its original cost less any depreciation or other write-down in value.
The proposals are also known as the 'Liikanen rule' or the Barnier-Liikanen rule.


This was distinct from - and could be very different from - prevailing market value, the fair market price which an asset might be expected to raise if offered for sale.  (Or at which a liability might be settled.)




In order to address the problems arising from differences between book values and market values, accounting practice has moved substantially toward a system of book valuation which is aligned more closely with market values.
==See also==
 
*[[Dodd-Frank]]
 
*[[European Union]]  
2. ''Record keeping.''
* [[Financial CHOICE Act]]
 
*[[Ring fence]]
A value recorded in an internal record of any kind, not necessarily accounting books and records.
*[[Vickers Report]]
 
*[[Volcker Rule]]
Distinguished from the current market value.
 
 
== See also ==
* [[Book entry]]
* [[Book equity]]
* [[Equity]]
* [[Fair value]]
* [[Market/book ratio]]
* [[Market price]]
* [[Market value]]
* [[Market value added]]
* [[Net assets]]
* [[Net book value]]
* [[Return on capital employed]]
* [[Shareholders’ funds]]
* [[Two-way price]]
* [[Write down]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 20:53, 14 February 2020

A European Union proposal for a regulation to stop the largest banks from engaging in proprietary trading (comparable with the Volcker Rule in the US Dodd-Frank Act).

The proposals for the EU would also give supervisors the power to require those banks to separate certain potentially risky trading activities from their deposit-taking business, if the pursuit of such trading activities were deemed to compromise financial stability.


The proposals are also known as the 'Liikanen rule' or the Barnier-Liikanen rule.


See also