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IAS 39 Financial Instruments: Recognition and Measurement

IAS 39 is the international accounting standard, established by the International Accounting Standards Board (IASB), which sets out the requirements for recognising and measuring financial assets and liabilities, as well as some of the contracts to buy and sell non-financial items. In this respect, IAS 39 also establishes the conditions to apply hedge accounting as […]

IFRS 9

The IFRS 9 Financial Instruments are the new accounting standards introduced by the International Accounting Standards Board (IASB) in 2014, to replace the IAS 39 Financial Instruments: Recognition and Measurement, and their application has been mandatory from the 1 January 2018. These new standards determine the requirements for the recognition, measurement, impairment and derecognition of […]

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inflation

Inflation is an economic concept referring to the pace at which the prices of goods and services increase over time. A low, sustainable level of inflation is crucial for healthy economic growth, and therefore one of the main objectives of central banks’ monetary policy is to maintain inflation close to a 2% annual rate. Inflation, […]

interest rate risk

Interest rate risk is risk that moves in interest rates affect the value of fixed-income instruments such as bonds. Because the value of a bond is the present value of its discounted cash flows, an increase in interest rates (used as discount rates) automatically translates into a lower present value. In banking, interest rate risk […]

interest rate swaps

An interest rate swap is an agreement between two parties to exchange interest payments (in the same currency) for a specific maturity on an agreed-upon notional amount. No principal is exchanged in an interest rate swap. The notional amount or notional principal is a reference amount needed to calculate the interest rate. The most common […]

international accounting standards board (iasb)

The International Accounting Standards Board (IASB) is an independent body responsible for the development and publication of a single set of global accounting rules. The rules, designed to provide transparent and comparable information in financial statements, are known as International Financial Reporting Standards (IFRS). The rules deal with the following points: . What information should […]

international bank account number (iban)

IBAN is the acronym for an International Bank Account Number, a universally recognised alphanumeric code used to identify a bank account. IBAN was designed to simplify international transactions, facilitate cross-border communication between banks and minimise the risk of transcription errors. An IBAN comprises up to 32 alphanumeric characters, includes a two-letter country code, two check […]

international transaction

An international transaction is a cross-border trade agreement or a credit operation that requires settlement in a foreign currency. In the chronology of a typical international transaction involving the exchange of goods or services, the settlement date is the last stage. It is preceded by other stages, such as forecasting, pricing, contracting (SO/PO, sales order/payment […]

invoice batch

In corporate treasury, an invoice batch is a bundle of different invoices put together by the payer to be processed as one. Invoice batching improves process efficiency, saving time and effort by skipping repetitive tasks like data input and ultimately reducing the risk of human error.  

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ISO 4217

ISO 4217 is the standard established in 1978 by the International Organization for Standardization which defines the rules to create the three-character codes representing the each one of the world currencies in circulation (except for several minor currencies, that are pegged to a bigger one). ISO 4217 is the code used by banks and businesses […]