The concept Strike Price Vs Exercise Price STATES that ‘Strike Price‘ is the price at which the underlying asset can be bought or sold, and ‘Exercise Price‘ the price at which the underlying asset can be bought or sold when the option is exercised. What is Strike Price? The ‘Strike Price’ … Read More
The concept Strike Price Vs Spot Price STATES that ‘Strike Price‘ is the price at which the underlying asset can be bought or sold, and ‘Spot Price‘ is the current Market Price of an underlying asset. Both terms are frequently used in options and futures trading, and they play a … Read More
Call Option is a Financial Instrument that gives the holder the right, but not the obligation, to purchase an underlying asset at a predetermined price, known as the strike price, within a SPECIFIC period of time, known as the ‘expiration date’. They are commonly USED in the stock market as … Read More
A Forward Contract is a legal AGREEMENT between two parties to buy or sell an asset at a specified price on a future date. It is an Over-the-Counter (OTC) contract that is customizable and is settled at a future date. They are commonly used in commodities, currencies, and financial markets. … Read More
A Futures Contract is a legally binding AGREEMENT between two parties to buy or sell a specific asset or commodity at a predetermined price and date in the future. They are TRADED on an exchange, and provide an efficient way for producers and consumers to Manage the Risks associated with … Read More
Provision in Accounting as per IAS 37 represent a company’s estimated liabilities or obligations, which are RECOGNIZED in financial statements as an expense or loss. Provisions are typically CREATED when there is uncertainty about the amount or timing of a liability, but the company has a legal or constructive obligation … Read More
Contingent Liabilities are potential OBLIGATIONS that may or may not come into existence, depending on the occurrence or non-occurrence of one or more future events that are not entirely within the control of the entity. They are often referred to as “Off-Balance Sheet” items because they are not reflected in … Read More
A Contingent Asset is a potential asset that may only be REALIZED if a certain condition is met. i.e, it is an asset that only has VALUE if a specific event occurs. This event can be internal to a company or external, such as changes in market conditions. Contingent Asset … Read More
IFRS 9 INTRODUCED the concept of Fair Value through Profit or Loss (FVPL). This classification APPLIES to financial instruments that are held for trading purposes and those that are designated at fair value through profit or loss. FVPL (Fair Value through Profit or Loss) IFRS 9, is an International Financial … Read More
IFRS 9 EXPLAINS the concept of FVOCI and its SIGNIFICANCE and requires to RECOGNIZE changes in Fair Value through Other Comprehensive Income rather than in Profit or Loss (P&L). FVOCI (Fair Value through Other Comprehensive Income) International Financial Reporting Standard (IFRS 9) ISSUED by the International Accounting Standards Board (IASB) … Read More