Overnight Index Swap 3 – Uses of OIS
Jul 20th
This article is part 3 of the series on Overnight Index Swap. To see first part of Overnight Index Swap series click
Overnight Index Swap – 1
Overnight Index Swap – 2
Users of Overnight Index Swap
As per RBI guidelines, banks, financial institutions, primary dealers and corporate have been allowed to transact in OIS
Uses of Overnight Index Swap
Asset [...]
Phase 2 of IFRS 9: Exposure Draft on Amortised cost and Impairment
Jul 12th
Further to our earlier explanation of IFRS 9 (click here to read), our analyst Shalini Tibe comments on the exposure draft of IFRS 9. We hope the information is useful to you.
Exposure Draft (ED) proposes to replace Incurred Loss Model for the assessment of impairment of financial assets measured at amortized cost currently included in [...]
Overnight Index Swap 2 – Pricing of OIS
Jun 23rd
This article is part 2 of the series on Overnight Index Swap. To see first part of Overnight Index Swap series click
Overnight Index Swap – 1
Pricing of OIS
Pricing involves calculating the fixed rate of interest for a given floating rate benchmark. This pricing can be done on the basis of term money rates [...]
Banking terms explained
Jun 4th
Friends, in many of the posts on this website, our analysts have used terms like repo rate, reverse repo rate and host of other ratios which might not be easily comprehensible to many of us. I have been receiving some queries regarding them as well. So here goes my small bit on few of these [...]
Indian Depository Receipts (IDRs) explained
Jun 1st
Recently we saw Standard Chartered Bank becoming the first foreign company to issue IDRs in India to raise capital. The issue was subscribed 2.2 times and will be listed shortly on Indian bourses. I am sure many of us would have doubts regarding IDRs. Following are some of the basic facts about IDRs which investors [...]
Valuation of Business: Analysis of environment and Industry
Apr 18th
“Valuation of Business” (valuation of companies) is a series of articles launched by MoneyBol to apprise our readers about different aspects Valuation of business. In first such articles we will look at analysis of environment and the respective industry.
Analysis of environment
Before analyzing any business concern, it is very important to analyze the environment it exists [...]
Fixed Assets / Property, Plant & Equipment : Differences between Indian GAAP and IFRS
Apr 15th
Under Indian GAAP the terminology used is Fixed Assets where as under IFRS it is termed as Property, Plant and Equipment
Standard IAS 16 covers Property, Plant and Equipment (PPE) where as there are 2 standards for Fixed Assets under Indian GAAP i.e. AS-10 Fixed Assets and AS-6 Depreciation
As per Indian GAAP subsequent expenditure related to [...]
MARKET RISK DISCLOSURES UNDER IFRS 7
Apr 5th
An entity possesses the risk if the fair value or cash flow of financial instrument will fluctuate as a result of change in market prices.
Following disclosures need to be shown in financial statement:
A sensitivity analysis of each type of market risk to which the entity is exposed showing how profit or loss and equity is [...]
Overnight Index Swap (OIS) – 1
Apr 3rd
To understand Overnight Index Swap (OIS) in depth we need to know some basics related to it.
What is Swap?
A swap basically means exchange. So any financial product suffixed or prefixed by words swap would indicate the exchange of something. This something might be future cash flows, interest rates (fixed or floating), currencies or a combination [...]
IFRS on Effective Interest Rate
Mar 25th
Effective Interest Rate
Effective Interest Rate (EIR) is a new concept to the existing Indian GAAP.
TheEffective Interest Rate (EIR) method is a method of calculating the amortized cost of a financial asset or a financial liability and of allocating the interest income or interest expense over the relevant period.
TheEffective Interest Rate (EIR)use in the allocation process is [...]
