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imported>Doug Williamson |
imported>Doug Williamson |
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| 1.
| | ''Funds transfer''. |
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| <i>Borrowing facilities</i>
| | Real-time transmission, processing or settlement. |
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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. <br>
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| (ii) Sometimes they include uncommitted facilities as well. <br>
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| (iii) They take different views on whether or not they add cash balances to their headroom figure.
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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.
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| 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.
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| 2.
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| <i>Equity</i>
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| An amount of authorised but unissued equity shares.
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| 3.
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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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| 4.
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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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| 5.
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| More generally, any measure of financial or operational flexibility, or safety margin.
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| == See also == | | == See also == |
| * [[Financial covenant]] | | * [[Real-time transmission, processing or settlement]] |
| * [[Going concern]]
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| * [[Rights issue]]
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| [[Category:Corporate_financial_management]]
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Revision as of 15:25, 20 August 2013
Funds transfer.
Real-time transmission, processing or settlement.
See also