Multilateral development bank and Realisation: Difference between pages

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(MDB).
'Realisation' refers to the conversion of assets, profits or losses into cash.


Development banks are national or regional banks established to provide loans or equity capital for productive investment, often accompanied by technical assistance, in developing countries.
Realisation can occur either on the receipt or payment of cash, or at an earlier time when such receipt or payment of cash becomes virtually certain.


A multilateral development bank is a supranational one, set up by more than one country.
 
Generally accepted accounting practice allows the [[recognition]] of income and assets only when their realisation in the form of cash, or other assets that are readily realisable, can be assessed with reasonable certainty.
 
The concept of realisation arose for the protection of the creditors of companies, to ensure that sufficient cash was available to distribute profits without a company or other entity becoming insolvent.
 
 
Only realised profits may be distributed under company law.  




== See also ==
== See also ==
* [[African Development Bank]] (AfDB)
*[[Accruals basis]]
* [[Asian Development Bank]] (ADB)
*[[Accumulated other comprehensive income]]
* [[Central bank]]
*[[Contingent assets]]
* [[Development bank]]
*[[Crystallisation]]
* [[Development finance institution]] (DFI)
*[[Recognition]]
* [[European Bank for Reconstruction and Development]]  (EBRD)
*[[Unrealised profit]]
* [[European Investment Bank]]  (EIB)
* [[Inter-American Development Bank]]  (IDB)
* [[International Finance Corporation]]  (IFC)
* [[Islamic Development Bank]]  (ISDB)
* [[Organisation for Economic Co-operation and Development]]
* [[Supranational]]


[[Category:The_business_context]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Trade_finance]]

Revision as of 10:57, 25 August 2019

'Realisation' refers to the conversion of assets, profits or losses into cash.

Realisation can occur either on the receipt or payment of cash, or at an earlier time when such receipt or payment of cash becomes virtually certain.


Generally accepted accounting practice allows the recognition of income and assets only when their realisation in the form of cash, or other assets that are readily realisable, can be assessed with reasonable certainty.

The concept of realisation arose for the protection of the creditors of companies, to ensure that sufficient cash was available to distribute profits without a company or other entity becoming insolvent.


Only realised profits may be distributed under company law.


See also