What are derivatives?, Accounting Basics

Derivative instrument is an asset which develops i.e. takes its origin from another asset.

The simplest form of derivative is a forward contract, "It is an agreement to buy or sell an asset at a particular future time for a particular price"Other forms of of derivatives have futures, options and swaps, etc.

 

Posted Date: 3/30/2013 5:43:55 AM | Location : United States







Related Discussions:- What are derivatives?, Assignment Help, Ask Question on What are derivatives?, Get Answer, Expert's Help, What are derivatives? Discussions

Write discussion on What are derivatives?
Your posts are moderated
Related Questions
Describe the mechanisms that WorldCom's management used to transfer profit from other time periods to inflate the current period.

State the term- Liabilities Current Liability is a debt which is due for payment within one year. Long-term liability is one NOT paid in a year. OWNER'S EQUITY Also

Difference between Fica and federal income taxes  Employers should file Form 940 with the IRS at the end of every calendar quarter. There are several rules about when to turn i

how do we credit debit cash received from owner

1.  What are financial accounting, management accounting, and finance? What are their similarities and differences? 2. What information does a balance sheet provide? How do acco

The career paths outlined above don't nearly cover all of the many professional options available to tax specialists. For instance are you concerned that a traditional tax accounti

An accounting is a service function. The main accounting executive through whatever name he is termed as holds a staff position except inside his own department where he exerts aut


Q. Classes and types of adjusting entries? Adjusting entries plunge into two broad classes deferred meaning to postpone or delay items and accrued meaning to grow or accumulate

When we say an asset is at its Net Book Value, Does that mean Cost of asset + Revaluation added - Accumulated Depreciation or Revaluation is not relevant for calculating the NBV?