Table of Contents
What is the own use exemption?
Getting into more detail. To qualify for the own use exemption, a contract to buy or sell a non-financial item needs to be entered into and continue to be held to receive or deliver that non-financial item in accordance with the company’s expected purchase, sale or usage requirements.
What is own use?
Own Use means a use by the owner that does not include the sale, exchange, barter or other disposition of trees harvested, injured or destroyed.
What is a financial instrument and related Ind AS?
What is ‘Financial Instrument’? Paragraph 11 of Ind As 32 defines: A financial instrument is any contract that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
What is meant by Puttable financial instruments?
A puttable instrument is a financial instrument that gives the holder the right. to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or the death or retirement of the instrument holder.
What is a finance contract?
A financial contract is a deal in the form of an independently arranged agreement, contract, or an option to sell, buy, swap, lend, or repurchase, or some other similar independently arranged transaction that is typically entered into between parties participating in the financial markets.
How does hedge accounting work?
Hedge accounting is a method of accounting where entries to adjust the fair value of a security and its opposing hedge are treated as one. This reduced volatility is done by combining the instrument and the hedge as one entry, which offsets the opposing’s movements.
What is financial instrument as per ind as 109?
IND AS 109 Financial Instruments deals with classification, recognition, de-recognition and measurement requirements for all the financial assets and liabilities.
What is a puttable instrument example?
An example would be an open ended mutual fund, which gives unit holders the right to redeem their interests in the enterprise at any time for an amount of cash equal to their proportionate share of the net asset value of the entity.
How do financial contracts work?
What is a bridge in finance?
Bridge financing “bridges” the gap between the time when a company’s money is set to run out and when it can expect to receive an infusion of funds later on. This type of financing is most normally used to fulfill a company’s short-term working capital needs.