Haircut and Primary financial statements: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create the page. Source: ACT Glossary of Terms)
 
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1.  
''Financial reporting.''


''Secured lending''.  
Under International Accounting Standards (IAS) the main accounting statements required to be presented.  


An amount deducted from the current market value of an asset used as collateral, to calculate the maximum amount of a loan secured against that asset. 
These are:


* Statement of financial position.
* Income statement (which can be included in the statement of comprehensive income).
* Statement of comprehensive income.
* Statement of changes in equity.
* Statement of cash flows.


'''Example 1'''


Market value of the asset = £100,000.  
The primary statements are supported by Notes providing additional and more detailed financial information.


Haircut = 2%.


The maximum amount of the related secured loan would be:
==See also==
* [[Income statement]]
* [[International Accounting Standards]]
* [[Notes]]
* [[Statement of cash flows]]
* [[Statement of changes in equity]]
* [[Statement of comprehensive income]]
* [[Statement of financial position]]
* [[Statement of profit or loss and other comprehensive income]]


= £100,000 LESS 2%
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:Compliance_and_audit]]
= £98,000
 
 
2.
 
The amount of a loss (or an expected loss) on asset, as a percentage of the total value of the asset.
 
 
'''Example 2'''
Debt = EUR 200bn.
 
Haircut =  50%.
 
Then:  
 
Loss of EUR 100bn (= 50% ).
Recovery of EUR 100bn.
 
 
3.
 
A fee or commission, expressed as a percentage of the total value of the related transaction.
 
 
== See also ==
* [[Collateral]]
* [[Repurchase agreement]]
* [[Bilateral repurchase agreement]]
* [[Margin]]
* [[Tri-party repurchase agreement]]

Revision as of 11:06, 26 November 2014

Financial reporting.

Under International Accounting Standards (IAS) the main accounting statements required to be presented.

These are:

  • Statement of financial position.
  • Income statement (which can be included in the statement of comprehensive income).
  • Statement of comprehensive income.
  • Statement of changes in equity.
  • Statement of cash flows.


The primary statements are supported by Notes providing additional and more detailed financial information.


See also

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