Chapter One The fundamental concept of Finance What is Finance- 1 Sources Of Finance- 2 Financial Instruments- 3 Financial institutions- 4 Chapter one 1- What is Finance Finance Is the study of how individuals, institutions, governments, and businesses acquire, spend and manage money and other financial assets. Chapter one 2- Sources of Finance can be divided into: 1- Internal source of finance which is ( come from inside the organization). 2- External source of finance which is ( come from outside the organization). Chapter one 3- Financial instruments. In this chapter will explain the Following: 1- Features of Financial instruments ...
Diversity of Islamic financial instruments Islamic financial instruments use a variety of cash flows to produce income for investors and banks. Potentially, each type of instrument must be tracked in order to compile data on property income generated. Also, country-by-country differences exist for each instrument. For conventional banks, the income statement top line is Net interest income, equal to gross receipts less payments. For Islamic banks (next slide), income receipts (line 3a in red) must be calculated on an instrument-by-instrument basis; payments to account holders (line 6a in red) also must be calculated instrument-by-instrument. Lines 3a and 6a both include ...
Outline The implications of risk The different types of risk Risk mitigation instruments Risk coverage gaps AfDB experience The implications of risk • Risk is the most important factor which prevents projects from finding financial investors; • Risk is the most important factor which prevents investors from raising the returns investors demand; • Higher financial returns are required to cover higher risks; • Risk and risk perceptions vary from project to project, technology to technology, industry to industry, and country to country; • Low carbon/ climate resilient (green/clean investments) can suffer higher risk perceptions due to their dependence on public ...
Relevant Accounting Standards LKAS 39 SLFRS 9 Financial Financial Instruments: Instruments Recognition and (Replacement of Measurement LKAS 39) LKAS 32 Accounti SLFRS 7 Financial Financial Instruments: ng Instruments: Presentation Standar Disclosures ds on Financia l Instrum ents 2 Financial Instrument Any contract that gives rise to both a financial asset of one entity and financial liability or equity instrument of another entity. 3 e.g. deposits of cash, Primary debt investments, equity investments, receivables/payables Types of e.g. options, Financial Derivative forwards/futures, Instruments swaps, caps and collars e.g. convertible Compound bonds, equity indexed notes, exchangeable debt 4 Financial Asset ...