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| | International Financial Reporting Standard 15, dealing with revenue from contracts with customers. |
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| <i>Borrowing facilities</i>.
| | Issued by the International Accounting Standards Board. |
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| The undrawn amount of a borrowing facility at any time is known as the headroom under that facility.
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| Note that headroom is a term that can have more than one meaning and - here as elsewhere - it is important to be clear about the definition in its particular context.
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| (i) Often when treasurers talk about headroom, they mean the total amount of undrawn committed facilities.
| | It is due to replace IAS 11 and IAS 18 from January 2017. |
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| (ii) Sometimes they include uncommitted facilities as well.
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| (iii) They take different views on whether or not they add cash balances to their headroom figure.
| | ==See also== |
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| Total sources of liquidity need to be sufficient to meet the cash needs of an organisation, taking into account any uncertainty over future cash requirements.
| | * [[International Accounting Standards Board]] |
| For this reason a <i>headroom target</i> should be set to provide flexibility and to ensure the Directors are able to certify their company as being a Going Concern (under IFRS accounting guidelines) at the end of each financial reporting period.
| | * [[IAS 11]] |
| | * [[IAS 18]] |
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| | | [[Category:Compliance_and_audit]] |
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| <i>Equity</i>.
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| An amount of authorised but unissued equity shares.
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| <i>Borrowings documentation</i>.
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| The difference between the current level of a financial covenant measure and the level at which the covenant would be breached.
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| <i>Trading limits</i>.
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| The difference between the current level of a trading position and the trading limit.
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| More generally, any measure of financial or operational flexibility, or safety margin.
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| == See also ==
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| * [[Financial covenant]]
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| * [[Going concern]]
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| * [[Rights issue]]
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Revision as of 11:53, 17 January 2015
International Financial Reporting Standard 15, dealing with revenue from contracts with customers.
Issued by the International Accounting Standards Board.
It is due to replace IAS 11 and IAS 18 from January 2017.
See also
