Term
| Disclosure requiremnt for Financial Instrument |
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Definition
Fair Value must be disclosed for all derivative for which it is practicable to estimate the value.
Concentrated of Credit Risk
Market Risk is encourage but are optional. |
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Term
Derivative instrument
*Fair Value* |
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Definition
Financial instument that "derives" its value from the value of some other instrument and hass all three of the following characteristic:
one or more underlying and notional amount
requires no initial net investment
its terms require or premit a net settlement. |
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Term
Accounting Changes in Fair Value
(No Hedging Designation) |
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Definition
| Gains/losses are reported in the income statement |
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Term
Accounting Changes in Fair Value
(Fair Value Hedge) |
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Definition
| Any Gains/ loss from the change in value offsetting assets/liabilities are reported in the current earning |
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Term
Accounting Changes in Fair Value
(Cash Flow Hedge) |
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Definition
Effective portion: Other Comprehensive income ("E" of PUFE)
Effective portion: current earning |
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Term
Accounting Changes in Fair Value
(Foreign Currency Hedge) |
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Definition
Fair Value hedge: Current earning
Cash Flow hedge: effective: PUFE
Net investment hedge: OCI: cumulative translation adjustment. |
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