Whereas, in the case of a cash discount, a bill is already generated, but if the payment is made much ahead of the payment date, some discount percentage is offered on this billed or invoice rate. Hence, the cash discount can be offered only on cash sales. Accounting Treatment The ...
A trade discount is a routine reduction from the regular, established price of a product. The use of trade discounts allows a company to vary the final price based on each customer’s volume or status. Note that trade discounts are different from early-payment discounts. (Early-payment discoun...
In earlier articles, these two terms have been discussed. Tabulated below for easy reference, salient points of the difference/distinction:
I.e. Basel RWA & capital floors, Insolvency2, CRR, concentration limits, capital controls etc. What are the accounting and Ratings Agency treatment considerations on Trade Receivable portfolios? E.g. RA’s factoring in off-balance sheet debt. What regulatory considerations are there among tr...
[43] to determine the optimal strategy on discount in 2021, which may be explained by the wide spread and application of digital technology. Table 4. Factors considered in pricing in remanufacturing trade. (c) “Sales and Service” Theme In the theme of “sales and service”, this kind ...
The discount rate is an interest rate used to convert future cash flows into current values. It reflects the effect of time on the value of money. The higher the discount rate, the lower the value of future cash flows as they appear today. The discount rate, also called the interest ...
We remain committed to making the Trade Register the definitive reference point for financial regulators–and, specifically, one that can ensure the appropriate treatment of trade exposures under Basel III. To get there, we need the full support of the industry–including smaller banks–to...
The smaller the discount factor (banking is costly), the less likely it is to witness a low enough shock realization that induces positive banking demand. The value of \(\beta\) parameter depends on the type of speculators that are in the market, and it can also vary depending on the ...
Goodwill The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition. Gradualism A steady and calculated approach to transforming an economy from communism to capitalism. Gray-Market Imports Gray-market imports are parallel distribution of genuine goods by ...
discount rate Hong Kong base rate BI reference rate BNM overnight rate BSP overnight reverse repo Singapore 3-month SIBOR BOK target overnight call BOT repurchase rate SBV base rate Central Bank Policy Rate 2015 2016 2017 0.50% 0.75% 1.50% 5.00% 0.00% 0.00% 0.00% -0.10% -0.10% 0.50% ...