Fair value and Multicurrency one-country pooling: Difference between pages

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1.
A cash management technique in which excess funds from companies’ accounts in the same country, which are denominated in different currencies, are concentrated and used to offset deficits for the purpose of determining interest earned or owed.
 
The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
 
 
2.
 
More specifically, the price at which an asset can be bought or sold in transparent markets, where contracting parties are informed and act in their best interest. 
 
It represents the theoretical equilibrium price of securities or derivatives on open markets, for example,  both buyers and sellers do not perceive them as overpriced or under-priced.
 
 
3.
 
''Financial reporting.'' 
 
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between [[market participant]]s at the valuation date.
 
Also known as Fair market value.
 
 
Relevant accounting standards include IFRS 13, and  Section 9 and Section 19 of FRS 102.




== See also ==
== See also ==
* [[Assets]]
* [[Cash concentration]]
* [[Face value]]
* [[Cash management]]
* [[IFRS 13]]
* [[Deficit]]
* [[FRS 102]]
* [[Pooling]]
* [[FVTPL]]
* [[CertITM]]
* [[FVTOCI]]
* [[Liabilities]]
* [[Market approach]]
* [[Cost approach]]
* [[Income approach]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]

Revision as of 10:08, 29 November 2014

A cash management technique in which excess funds from companies’ accounts in the same country, which are denominated in different currencies, are concentrated and used to offset deficits for the purpose of determining interest earned or owed.


See also

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