Commodity risk and Participating interest: Difference between pages

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''Risk management''.  
''Accounting.''   
When commodities are part of a company’s core business or processes there can be exposures arising from either or both of:
In connection with the definition of 'parent' and 'subsidiary undertakings', an interest held by an undertaking in the shares of another undertaking which it holds on a long-term basis for the purpose of securing a contribution to its activities by the exercise of control on influence arising from that interest.


1. Price fluctuations (commodity price risk); and
== See also ==
* [[Parent undertaking]]
* [[Subsidiary undertaking]]


2. Lack of availability of the commodity.
Both of these risks are aspects of Commodity risk.
Commodity price risk - as defined above - may also arise from intentionally creating speculative positions in the physical commodity or (more commonly) related derivative instruments.
== See also ==
* [[Commodity ]]
* [[Derivative instrument]]
* [[Risk]]

Revision as of 14:20, 23 October 2012

Accounting. In connection with the definition of 'parent' and 'subsidiary undertakings', an interest held by an undertaking in the shares of another undertaking which it holds on a long-term basis for the purpose of securing a contribution to its activities by the exercise of control on influence arising from that interest.

See also