Finance

A financial instrument is a financial contract between two parties. It is a document that represents an asset to one party and liability to another. It carries financial value and represents a binding agreement between two or more parties. It is used by investors to predict future value. Examples of financial instruments are bills of […]

Introduction Generally, liability is anything that a company or an individual owes to another company or individual. International Financial Reporting Standards (IFRS) Framework defines liability: “A liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.“ Liabilities can be divided

Introduction Often fair value and market value are used interchangeably and understood as the same thing; however, in reality, they are not identical. There is a difference between these two terms; however, the meanings of these terms may be very similar under some circumstances. To understand the difference between market value and fair value, we

Introduction In the late 1970s, some of you might have read in history books that SEC was dealing with price level accounting and replacement accounting. These experiments died because they did not provide useful information. In theory, current values and fair values are better than historical costs. “Fair value is the price that would be

Fair value and book value are two different methods of valuing a company. While both methods are widely used by investors to value companies for decision-making, both the methods are substantially different in the way they value the company. Therefore, it is important to understand the differences between both methods. Book Value The book value

Definition: Debt finance is a type of finance that is acquired by a business for the principal amount to be paid along with interest at a future date. Generally, debt finance has a set time period for repayment. When a business acquires debt finance, it may be subject to different terms and conditions which is

Financial information is data about financial transactions about a person or business. Financial information includes payment histories, credit card numbers, credit ratings by third parties, financial statements, etc. Financial information is used by investment companies, creditors, lenders, and management to evaluate an entity. While using financial information, the security of the data should be ensured

Financial institutions are engaged in dealing with financial transactions and the government highly regulates them. Financial institutions help their clients with a wide variety of services like lending, deposit, investment services, and currency exchange. The main financial institutions are commercial banks, investment banks, mutual funds, insurance companies, advisory firms, brokerage firms, investment institutions, trust companies,

Financial intermediaries play a very significant role in the economy. A financial market is a physical place where financial instruments are traded. By using financial intermediaries, financial markets facilitate the flow of money from lenders to borrowers, which helps improve the economy. Financial intermediaries are required for many reasons different parties have different requirements to