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Articles on Trending Technologies
Technical articles with clear explanations and examples
How future contracts are terminated?
Future contractsThese are a standardized agreements between parties −One party commits to sell stipulated quantity, quality of commodities, securities or any other specific items at particular price on or before future date (agreed in agreement)Daily settlements of all Gains/losses (till status of contract is open)Provides either physical delivery or cash settlementFeaturesBuyer (LONG) agree to receive deliverySeller (SHORT) agree to make deliveryTraded on exchanges (either by Pits or electronically)Can be terminated prior to contract expiration (by offsetting transactions)Future contract has a underlying instrument (currency, commodity etc.), size (amount of underlying item covered in contract), delivery cycle, expiration date, quality specification, delivery ...
Read MoreWhat is net investment hedge?
It is a specific type of foreign currency cash flow hedge used to reduce or eliminate risk arises to foreign currency of an entity’s net investment in a foreign operation. In other words, it is the hedge designed to remove entity’s changes in net investment value to foreign investment in a foreign operation. That foreign operation occurs due to change in foreign exchange rates between local currency of foreign investee and reporting currency of investor.The hedging instrument in his hedge can be derivative, non-derivatives or a combination of both. Derivatives like foreign exchange forward contract and non-derivative like foreign currency ...
Read MoreWhat is accounting entries for fair value hedge?
Hedging an asset or liability limits the exposure to extreme changes in its value. Hedging is done to mitigate the risk of loss. Any gain arises through hedging instrument will uplift the item in the financial statement (in case of asset value falls drastically).Accounting for fair value hedges is done by company with respect to exposure of fair value change of item. This item can be asset or liability to company and can be attribute to particular risk which result in generating profit or loss to companySteps involved in fair value hedge accountingFair value of hedged item and hedging instrument ...
Read MoreWhat is GAAP and Non-GAAP?
Let us first understand what GAAP.GAAP (Generally Accepted Accounting Principles)GAAP offers standards for the true and fair value of companies financial wellbeing. It is defined by Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC).Advantages of GAAP includeFacilities consistencyIncrease investors trust.Comparability of financial statements.Decision making.Disadvantages include:Compels financial statements according to creditors instead of equity holders.Non – GAAP (Generally Accepted Accounting Principles)Non – GAAP is not a standard one. Necessary adjustments are made for conveying significant information. Securities and Exchange Commission (SEC) issues rules and regulations.Advantages of Non – GAAP include −Provides Quality information.Provides Predictive information.Provides relevant and ...
Read MoreWhat is the difference between cash settlement and physical settlement?
Let us see first understand what cash settlement and physical settlement are −Cash settlementIn this net settlement is done with cash on settlement date, that means, it does not involve any physical delivery of assets or asset. In this, contractor pays the difference amount of spot price and future price. Contractor pays difference amount in cash at the time of settlement.Physical settlementIt involves physical delivery of underlying asset or assets on settlement date. This process is coordinate by clearing agents or brokers. In this, if contractor holds SHORT POSITION then he will responsible for physical delivery. If contractor holds LONG ...
Read MoreWhat are characteristics of forward contracts?
In forward contract both sellers and buyers involve in forward transactions and both are obligated to fulfill their obligations on or before maturity or expiry date. Obligations of forward contract are as followsBuy or sell underlying asset at forward price or specific priceBuy or sell underlying asset at expiry date or on contract maturity or at particular timeNot traded on exchangesThe main characteristics of forward contracts are explained below −Not traded − Forward contracts are designed to meet specific requirements of company. These contracts are not traded in the market.No premium − Since these contracts are not traded in markets, ...
Read MoreWhat is corporate restructuring?
Corporate restructuring is a process, where the entity modifies its capital structure or operations. Corporate restructuring is preferred, if there are significant problems in the financials of the corporation and to enhance their performances. Change in ownership is also one of the causes for corporate restructuring. Financial and legal experts are hired to assist in the process.ReasonsThe reasons for corporate restructuring are as follows −Change in strategy.No profits for a long time.Reverse synergy.More cash flow requirements.CharacteristicsThe characteristics of corporate restructuring are as follows −Improves balance sheet.Reduction of staff.Change in management.Disposing assets (underutilized).Outsourcing.Operational shift.Reorganizing functions.Labor contracts renegotiations.Debts rescheduling.AspectsThe aspects to consider ...
Read MoreC++ Program to remove Characters from a Numeric String Such That String Becomes Divisible by 8
Given a number in the form of a string, we need to find where to make it divisible by eight after deleting zero or more elements. In other words, we need to find whether there is a subsequence of the string, which is divisible by 8. Return the modified string or -1 if it is not possible.Any number whose last three digits are divisible by 8 is also divisible by 8. For example, 56992992 and 476360 are divisible by 8, but 2587788 is not. If the result is a whole number, then the original number is divisible by 8.We can ...
Read MoreHow to improve your soft skills?
Soft skills always revolve around your personal relationships such as your attitude and character. You have to slowly develop and nurture these skills by working and increasing your work performance, build stronger relationships and work very hard towards your promotion.You need to develop your communication skills, strengthen your personal relationships and demonstrate your personal enthusiasm to show your managers and superiors that your soft skills are top notch.These can be done through the following ways:Express yourself − First focus on your communication skills. This could be very simple as something as determining whether your colleague is free for lunch or ...
Read MoreHow do earthquakes affect the geography of the earth?
Earthquakes are caused when the rock which is present beneath the ground starts to rupture or breaks the ground along a fault line.Earthquakes usually occur when the Earth's crust which is also known as tectonic plates move past each other under the ground. Due to this, a sudden release of energy is formed which gives rise to seismic waves, and these seismic waves will shake the ground.The earthquakes affect the geography of the earth in the following ways:Ground ShakingGround shaking is a frequent result of earthquakes.When earthquakes have occurred, the first thing the earthquake effects is the ground.When the rocks ...
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