Over the counter and Primary statements: Difference between pages

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(OTC).
''Financial reporting''.
Direct dealing between counterparties - for example corporates and banks - which allows for tailoring of financial contracts but which also exposes the parties to credit risk.  


Exchange trading is the alternative to OTC dealing. Exchange traded instruments are standardised, and less flexible, but the interposition of the exchange substantially reduces credit risk.
In financial reporting, primary statements are the main accounting statements required to be presented.
 
 
These normally include statements of:
 
* Financial position (balance sheet).
* Comprehensive income (profit or loss).
* Changes in equity.
* Cash flows.
 
 
The primary statements are supported by ''notes'' providing additional and more detailed financial information.
 
 
The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.
 
 
====Comprehensive income and profit or loss====
 
Comprehensive income includes both:
 
*Profit or loss for the period; and
 
*Other comprehensive income for the period.
 
 
Many entities report their profit or loss and other comprehensive income in two separate statements.
 
In these cases, there are FIVE primary financial statements: cash flows, changes in equity, comprehensive income, financial position, and profit or loss.
 
 
The statement of profit or loss is also known as the ''income statement''.


More specifically, this is a market for the trade of securities that are not listed on the stock exchange consisting of bilateral dealing contracts between brokers. As opposed to an organised stock exchange, prices on the OTC markets are set by direct negotiation between dealers and not by an auction system. 


The OTC market is a market for companies which do not fulfil the listing requirements of the official stock exchange markets, or for derivatives or other financial instruments that do not have a liquid market.


== See also ==
== See also ==
* [[Exchange traded]]
* [[Entity]]
* [[Exchange-traded option]]
* [[FVTOCI]]
* [[Listing]]
* [[FVTPL]]
* [[NASDAQ]]
* [[IAS 1]]
* [[Security]]
* [[Income statement]]
* [[Stock]]
* [[International Accounting Standards]]
* [[Notes]]
* [[Primary financial statements]] (IAS)
* [[Statement of cash flows]]
* [[Statement of changes in equity]]
* [[Statement of comprehensive income]]
* [[Statement of financial position]]
* [[Statement of profit or loss and other comprehensive income]]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 11:00, 29 October 2020

Financial reporting.

In financial reporting, primary statements are the main accounting statements required to be presented.


These normally include statements of:

  • Financial position (balance sheet).
  • Comprehensive income (profit or loss).
  • Changes in equity.
  • Cash flows.


The primary statements are supported by notes providing additional and more detailed financial information.


The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.


Comprehensive income and profit or loss

Comprehensive income includes both:

  • Profit or loss for the period; and
  • Other comprehensive income for the period.


Many entities report their profit or loss and other comprehensive income in two separate statements.

In these cases, there are FIVE primary financial statements: cash flows, changes in equity, comprehensive income, financial position, and profit or loss.


The statement of profit or loss is also known as the income statement.


See also

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