IP completion day and Leverage: Difference between pages

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''UK - European Union (EU) - Brexit.''
1. <br />
 
Debt divided by Debt plus Equity = D / (D + E).<br />
IP completion day was 31 December 2020.
<br />
 
<b>Example</b><br />
IP completion day is an abbreviation for 'Implementation Period' completion day, the ending of the 11-month period from 31 January 2020 during which the UK continued to be subject to EU rules.
If the amounts of debt and equity were equal then leverage under this definition would be calculated as:<br />
 
1 / (1 + 1) = 50%.<br />
 
<br />
(This period was known in the Withdrawal Agreement between the UK and the EU as the 'transition period'.)
2. <br />
 
The term 'leverage' is also used in a broader sense to refer to the amount of debt in a firm's financial structure.<br />
 
Used in this broader sense, 'leverage' means very much the same as 'gearing'. <br />
On 24 December 2020 the UK and European Commission agreed the terms of a post-Brexit free trade agreement agreement that applied from 1 January 2021.
However, leverage and gearing are normally quantified by different calculations.<br />
 
<br />
The EU-UK Trade and Cooperation Agreement entered into force on 1 May 2021.
3. <br />
To increase the level of gearing in an operational or financial structure.  The intention of leveraging is to improve expected net results. <br />
A consequence of leveraging is normally to increase financial risk.<br />
Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.
<br />




== See also ==
== See also ==
* [[Article 50]]
* [[Debt]]
* [[Brexit]]
* [[Deleverage]]
* [[Brexit Day]]
* [[Gearing]]
* [[Brexit transition period]]
* [[Leverage ratio]]
* [[Brexodus]]
* [[EU 27]]
* [[European Commission]]
* [[European Union]]
* [[European Union (Withdrawal Agreement) Act 2020]]
* [[EU-UK Trade and Cooperation Agreement]]
* [[Exit day]]
* [[Free trade agreement]]
* [[Make UK]]
* [[No Brexit]]
* [[No Deal]]
* [[Parliamentary supremacy]]
* [[Ratification]]
* [[Sovereignty]]
* [[United Kingdom]]
* [[Withdrawal Agreement]]
 


== Other resource==


*[https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7960 Brexit timeline - House of Commons Library]
===Other links===
[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, The Treasurer, July 2012]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:The_business_context]]

Revision as of 12:12, 29 May 2015

1.
Debt divided by Debt plus Equity = D / (D + E).

Example
If the amounts of debt and equity were equal then leverage under this definition would be calculated as:
1 / (1 + 1) = 50%.

2.
The term 'leverage' is also used in a broader sense to refer to the amount of debt in a firm's financial structure.
Used in this broader sense, 'leverage' means very much the same as 'gearing'.
However, leverage and gearing are normally quantified by different calculations.

3.
To increase the level of gearing in an operational or financial structure. The intention of leveraging is to improve expected net results.
A consequence of leveraging is normally to increase financial risk.
Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.


See also


Other links

Masterclass: Measuring financial risk, The Treasurer, July 2012

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