Expected credit loss and Money market fund: Difference between pages

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''Financial reporting - impairment of financial assets - IFRS 9''.
(MMF). A managed fund which invests in money market instruments.


(ECL).
Some money market funds are structured as 'liquid' money market funds, designed to be lower risk managed funds by - among other features - investing only in liquid money market instruments of the highest credit quality.


Expected credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes.
Other money market funds seek to provide higher average expected income through a longer dated, higher risk and less liquid portfolio.


It is calculated as:
== See also ==
* [[Accumulating net asset value]]
* [[Constant net asset value]]
* [[m]]
* [[mf]]
* [[Money market]]


ECL = PD x EAD x LGD x Discount Factor
Where:
ECL = expected credit loss
PD = probability of default
EAD = exposure at default
LGD = loss given default
Discount Factor is based on the expected date of default
==See also==
* [[Credit ]]
*[[Default]]
*[[Discount factor]]
*[[Exposure At Default]]
*[[Financial asset]]
*[[IFRS 9]]
*[[Impairment]]
*[[Loss Given Default]]
*[[Probability of Default]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Revision as of 14:20, 23 October 2012

(MMF). A managed fund which invests in money market instruments.

Some money market funds are structured as 'liquid' money market funds, designed to be lower risk managed funds by - among other features - investing only in liquid money market instruments of the highest credit quality.

Other money market funds seek to provide higher average expected income through a longer dated, higher risk and less liquid portfolio.

See also


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