Funding and Net asset value: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
m (Spacing 21/8/13)
 
Line 1: Line 1:
(NAV).
1.
1.


Medium to longer term borrowing by a non-financial undertaking to meet its operational needs.
A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.


The current balance sheet of the business would normally be the starting point for a net asset valuation.


2.
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.  


More generally, the provision or the sources of finance necessary for the continuing operation of an undertaking.  
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


In this context, sources of finance for non-financial organisations would include creditors, bank lenders, bondholders and shareholders.


2.


3. ''Pensions.''
Similar valuation methods applied to other entities.
 
The provision in advance for future liabilities in a defined benefit pension scheme by the accumulation of assets.
 
 
4. ''Banking.''
 
In the banking context, sources of funding include retail customer deposits and equity, as well as wholesale and longer term borrowings.




== See also ==
== See also ==
* [[Defined benefit pension scheme]]
* [[Accumulating net asset value]]
* [[FFL]]
* [[Book value]]
* [[Flighty]]
* [[Funding liquidity risk]]
* [[Funding management]]
* [[Funding ratio]]
* [[Liability funding risk]]
* [[MCT]]
* [[Net stable funding ratio]]
* [[Stability]]
* [[Sticky]]
 
 
===Other links===
[http://www.gtnews.com/Features/PDF/AFP_Guide_to_Global_Short_Term_Borrowing.pdf AFP Guide to Global Short Term Borrowing]  ''gtnews.com''

Revision as of 15:44, 21 August 2013

(NAV).

1.

A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.

The current balance sheet of the business would normally be the starting point for a net asset valuation.

The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.

Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


2.

Similar valuation methods applied to other entities.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Funding&oldid=34002’