Exotic and FVTOCI: Difference between pages

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1. ''Financial contracts.''
''Financial reporting.''


'Exotic' is a description meaning that there are non-standard features in a financial contract.
Fair Value Through the statement of Other Comprehensive Income.


FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments.


2.


More broadly, 'exotic' structures and arrangements are any non-standard ones.
Under FVTOCI, changes in fair value are ''not'' reported as part of profit or loss (earnings) for the period.


 
Instead they are reported as part of 'other comprehensive income'.
:<span style="color:#4B0082">'''''Corporate criminal liability framework not fit for purpose'''''</span>
 
:"'Another area of concern,' the UK Treasury Committee stressed, 'is company formation, specifically the role of Companies House, which is not required to carry out any AML checks. This makes it a weakness in the UK's system for preventing economic crime.'
 
:Meanwhile, contributors to the Committee's research described the UK's corporate criminal liability framework as 'not fit for purpose'.
 
:Under the current arrangements, the Committee said it is 'typically more difficult to identify which people are the directing mind and will of a larger company than a smaller one, potentially encouraging more exotic management structures to avoid prosecutions'."
 
:''The Treasurer magazine, Cash Management Edition April 2019, p8.''




The consequence of FVTOCI treatment is to avoid volatility in reported earnings.




== See also ==
== See also ==
* [[Anti money laundering]] (AML)
*[[Fair value]]
* [[Companies House]]
*[[FVTPL]]
* [[Exotic currencies]]
*[[Statement of profit or loss and other comprehensive income]]
* [[Fit for purpose]]
* [[IAS 39]]
* [[Plain vanilla]]
* [[IFRS 9]]
* [[Treasury Committee]]
* [[IFRS 9 hedge accounting reforms: a closer reflection of risk management?]]
* [[IFRS 13]]
* [[Statement of comprehensive income]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Manage_risks]]

Revision as of 10:18, 28 February 2018

Financial reporting.

Fair Value Through the statement of Other Comprehensive Income.

FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments.


Under FVTOCI, changes in fair value are not reported as part of profit or loss (earnings) for the period.

Instead they are reported as part of 'other comprehensive income'.


The consequence of FVTOCI treatment is to avoid volatility in reported earnings.


See also

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