Debtors and Derivative instrument: Difference between pages

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''Accounting.''
A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).


1.  
Derivative instruments are widely used by non-financial corporates for hedging purposes.


Amounts which a reporting entity is due to receive.


<span style="color:#4B0082">'''Example'''</span>


2.  
A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.  


Those who owe the amounts which are due.
The value of the share option derives from the current price of the related underlying share relative to the option strike price.




3.
== See also ==
* [[CertFMM]]
* [[Collateral]]
* [[Commodity risk]]
* [[CP]]
* [[Credit support annex]]
* [[Embedded derivative]]
* [[ETD]]
* [[FC]]
* [[Fixing instrument]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]


Trade debtors.


===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, The Treasurer, December 2012]


== See also ==
*[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012]
* [[Bad debts]]
* [[Creditors]]
* [[Receivables]]
* [[Set-off]]
* [[Trade debtors]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Liquidity_management]]

Revision as of 10:33, 18 August 2016

A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).

Derivative instruments are widely used by non-financial corporates for hedging purposes.


Example

A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.

The value of the share option derives from the current price of the related underlying share relative to the option strike price.


See also


Other links

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