A typical securitisation transaction involves the pooling of assets that are then transferred to a special purpose vehicle that in turn finances the purchase through the issuance of securities backed by the pool. This process involves a number of participants. List and explain the 8 participants and also aid your explanation with a diagram the process of securitization.
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A typical securitisation transaction involves the pooling of assets that are then transferred to a special purpose vehicle that in turn finances the purchase through the issuance of securities backed by the pool. This process involves a number of participants. List and explain the 8 participants and also aid your explanation with a diagram the process of securitization.
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- While recording investing transactions, all of the following functions need to be carried out, except: A.Recording market adjustments and reclassifications B. Recording purchases, sales, and income. C. Reviewing purchases, sales, and income transactions D. Assessing investment performance and reportingThe acquisition of assets by issuing securities would be classified as an operating activity. an investing activity. a financing activity. a noncash investing and financing activity.When receivables are bundled and transferred to another organization that issues securities collateralized by the transferred receivables, the arrangement is defined as: Multiple Choice: A. collateralization. B.discounting. C. factoring. D.securitization.
- The usefulness of the balance sheet is enhanced by classifying assets and liabilities according to common characteristics. What are the classifications used in the balance sheet and what elements do those categories include?Please analyze and interpret their operating, investing, and financing activities in detail.Investing activities include the acquisition and disposition of assets. Provide three specific examples. Identify two exceptions.
- According to CF of IASB Determining how an asset or liability should be measured should ideally be linked to: Select one: a. All of above b. the perceived objectives of general purpose financial reporting c. to provide information beneficial to decisions involve buying, selling or holding equity and debt instruments, and providing or settling loans and other forms of credit. d. usefulness to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entityWhat is the importance of financial information for entreprenuers? Briefly describe the key componentsThese types of services may be reported as off-balance sheet items except: a. Intangible assets e.g., mortgage servicing rights. b. Standby letter of credit agreement. c. Securitization of collateral. d. Derivatives, hedge funds agreement, futures.
- Name some of the various types of financial intermediaries described in thechapter and indicate the primary reason(s) each was created.What is the role of financial intermediaries in asset transformation? Briefly explain along with the types of asset transformation undertaken by the financial intermediaries.The classification and therefore subsequent measurement of financial assets depends on.? Select one: O a. The business model of the reporting entity considering management's intention of holding the portfolio of financial assets. O b. The specifications of the external auditors. O c Maturity and cash flows received on maturity of the financial assets O d. The amount and terms of payment for the purchase of the financial assets. CLimited is a stock broking firm in the business of buying and selling shares on the JSE (Johannesburg Securities Exchange) on behalf of its clients and on its own behalf. On 1 December 2015, C Limited bought, on its own account, 10 000 shares of D Limited when the market price was R40. The share price of D Limited rose drastically to R60 and on 31 March 2016, C Limited sold 5 000 of the D Limited shares. Assuming that the year-end of C Limited is 31 March each year and that the corporate tax rate is 28% for 2016 and that only 70% of capital gains are taxable,…