The new financial instruments
Article Abstract:
The new financial instruments can be divided into three categories: general investment and financing securities; asset-backed securities; and hedging or risk management securities. General investment and financing securities include: traditional short-, medium-, and long-term bonds, common and preferred stocks, debt with equity warrants, zero-coupon bonds, and Eurodollar instruments. Asset-backed securities allow companies to access cash immediately rather than waiting for receivables to be collected and include collateralized mortgage obligations and securitized receivables. Hedging, or risk management securities, provide an opportunity for speculative profits and can help insure portfolios from interest rate risk and include options on securities and futures and interest rate swaps.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
GASB's future role
Article Abstract:
The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) should merge into a single standards board because the present dual system has several drawbacks, including major differences in accounting for the public and the private sector. A single accounting authority, possibly called the Financial Reporting Board (FRB), could be created that has the expertise in the issuance of both private- and public-sector accounting standards. The GASB and FASB would then function as technical support groups for the new board. Ultimately the FRB would help users of financial statements because the fewer differences in accounting principles, the better the chance that all competitive entities in the capital market will receive proper risk evaluation.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Improving cost management. Financial instruments: what should be disclosed?
- Abstracts: The determinants of tendering rates in interfirm and self-tender offers. A theory for the choice of exchange medium in mergers and acquisitions
- Abstracts: What's new in controlling corporate travel expenses? When you lose your job... outplacement executive says 85% find equal or better position
- Abstracts: Evaluation of overhead allocations. Competitor cost analysis at Caterpillar. Rx for better management: critical success factors