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As an accountant,one of the basic fundamental convention we alway adhere to is the going concern concept. How then can we see tell-tales of your company not as a going concern outfit? Some indications and tell-tales are: loan repayments are falling due in the near future and refinancing facilities are not immediately available high [...] CLICK TO THE MAIN PAGE ON ALL ARTICLES ON PERSONAL FINANCE Capital Asset Pricing Model is merely a theoretical construct developed by William Sharpe and John Lintner wherein a security’s return is directly related to its systematic risk that is,the component of risk which cannot be neutralized through diversification.(example major political,economic and social [...] Another common term used in debt financing is the “escrow”. Here it relates to cash,securities or other valuable instruments that are held by a third party to ensure that the obligations under a contract are discharged. By doing so,the third party’s risk is being mitigated. This is commonly used in infrastructure projects like [...] Note Issuance facility is merely a method of financing that involves repeat issues of a short term debt instrument to the most competitive bidder through auctions. When combined with a Revolving Underwriting Facility (RUF i.e. an underwriting facility which is extended in every round of fund-raising),the issue will devolve on the underwriter,if the [...] In debt financing,we often hear the term “hypothecation of xx”. Hypothecation simply refers to the pledging of assets as security for the funds borrowed. A typical example is the bank lending working capital which involves a hypothecation of INVENTORIES and BOOK DEBTS. In this case,the current assets still remain with the borrower but [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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