Going concern basis and Quantitative easing: Difference between pages

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1. ''Financial reporting - accounting concepts.''
''Monetary policy.''


The going concern basis of accounting requires that the accounts are prepared using the assumption that the business will continue in operation for the foreseeable future (more than 12 months) and that there is neither the aim nor need to liquidate or limit significantly the nature of the operations.
(QE).  


Quantitative easing is a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.


2.  
It involves a central bank buying financial assets, and its effect is to increase the money supply.  


More generally, a basis of valuing a business on the assumption that it will continue in operation.


Such a valuation may be made for accounting purposes or for other purposes.
The financial assets bought are usually central government debt.




3. ''Pensions''.
== See also ==
* [[Asset Purchase Facility]]
The assumption that a pension scheme continues without being discontinued. 
* [[Balance sheet reduction policy]]
* [[Cash in the new post-crisis world]]
* [[Central bank]]
* [[Fiscal policy]]
* [[Helicopter money]]
* [[Monetary policy]]
* [[Money supply]]
* [[QE2]]
* [[POMO]]


Going concern valuations are made on such a basis.


===Other links===
[https://www.bankofengland.co.uk/monetary-policy/quantitative-easing: What is quantitative easing, Bank of England]


== See also ==
[[Category:Long_term_funding]]
* [[Accounting concepts]]
* [[Accruals concept]]
* [[Additional Tier 1]]
* [[Asset value]]
* [[Break-up value]]
* [[Consistency]]
* [[Disaggregation]]
* [[Discontinuance]]
* [[Discontinuance method]]
* [[Double entry]]
* [[Going concern]]
* [[Gone concern]]
* [[Headroom]]
* [[Liquidation value]]
* [[Total Loss Absorbing Capacity]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 11:29, 24 April 2019

Monetary policy.

(QE).

Quantitative easing is a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.

It involves a central bank buying financial assets, and its effect is to increase the money supply.


The financial assets bought are usually central government debt.


See also


Other links

What is quantitative easing, Bank of England

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