【商务英语】西方会计英语(纯英文LRC)-6Unit six【声音字幕同步PPT】

That argument is specious for two reason Firstly, risk has never been a determining
factor in consolidatio Secondly, even if it were relevant,those who use this argument are referring solely to the credit risk,and not to all the risks
Accounting Practice 21, which deals with leases and hire-purchase contract
Leasing had become a substantial source of off balance-sheet finance, and the
building societies,too,appear to have greeted the ASB propsal with mixed feeling The opponents of the proposal argue that it
could stop them securitising To understand why they think that may happen,it helps to know a little about the
with the result that it frees capital for other things--and also substantially reduces the
apparent level of gearin Many lenders argue that this state of affairs
standard was designed to recognise the
the effect is that ,unless the leased assets and obligations are capitalised ,potentially
large liabilities build up off balance-shee equally the leased assets employed are not
benefit from the securitised mortagage
and when viewed in this light the logic of this proposal is frankly difficult to refut
There would be no problem but for the fact that most mortgage lenders who have used securitisation as a funding method have done so with the specific aim of getting the assets off the balance shee Ever since securitisation first appeared in the UK, many have regarded this ,quite
process from a securitised bond issu
Not at all, The principal advantage of securitisation is not that it takes assets off
the balance sheet but that it provides non-recourse funding to
proces
to transfer a pool of mortgages,to a specially formed compan
This company ,called the issuer, may enhance the pool's credit quality, often by
buying insuranc It then issues bonds using the pool as securit The process is similar to any normal method
balance-sheet. There is still some uncertainty over the
The question now, is whether it will be able to repeat its success in dealing with leasing
on the new and more sophisticated off balance-sheet financing schemes which
which cannot be reduced, or even held stead
out of internally generated funds, it is easy to see why the management might be lured into one of these artificial funding scheme The off balance-sheet finance may be
is quite acceptabl Their view is that the balance sheet should only show assets which carry significant ris
and since the risk associated with securitised assets is remote or even non-
maturit A lender can offer long term loans secure in
the knowledge that the funds to finance them will be there until either the loan
matures or the borrower decides to repay i
this funding method carries a large liquidity ris
As the aftermath of the BCCI affair earlier in the year showed
it does not take very much for investors to become nervous ,with potentially disastrous
However ,the introduction of the leasing standard passed off without too much trouble,depite the complexity of the subjec By and large companies have been happy to capitalise the assets purchased under finance leases,and,to incorporate the corresponding liability to the lessor in the
inherent in lendin Whilst the credit risk may indeed be insured
away,the risk that profits and service
If these losses are being borne by the originator, the parent company is obviously bearing both a liquidity risk and a margin ris The only way to avoid any form of risk is to
reflected on the balance-shee These omissions may mislead users of a company's accounts--both external users and the company's own managemen
It was quite a bold move by the AS
After all, the articles of association can ,with shareholder's approval, be
amende That change will not help the management if the main problem for the business is that
and it may lead to an investment decision being taken on inappropriate ground
The position was summed up by the ASC in its foreword to Statement of Standard
not always, the originator itsel Any remaining profit is usually passed back
in one form or another, again to the originato
In a nutshell, the ASB argues that where the originator continues to enjoy an economic
sell the assets outright ,which implies that the originator receives no further economic
benefit whatsoever from the mortgage However ,a sale is clearly a very different
its borrowings are simply too hig The stock market ห้องสมุดไป่ตู้s acutely aware of the dangers for a company which has hign
levels of debt that must be service
When a company finds itself in the unfortunate position of having high gearing
have sprung up more recentl Text 6.2 Bold proposal may lay balance
sheet bare Consultation ends today on the Accounting Standards Board's proposal
Building societies have yet to take advantage of this funding technique,but
of arranging secured deb Out of the mortgage interest it receives, the
Part of those costs will be a fee to the mortgage administrtor, which is often ,but
6Unit six
海子复读小霸王整理 Unit 6 Off balance sheet accounti Tesxt 6.1 Cleaning up the balance she However ,it is not always the limit on borrowings power which prompts a company to seek off balance-sheet financ