TODO
Asset
In
financial accounting, an
asset is any resource that can be used by an economic entity (such as a «business») to produce positive
economic value.
The definition of IFRS is: «An asset is a present economic resource controlled by the entity as a result of past events.[5] An economic resource is a right that has the potential to produce economic benefits.»
The definition of GAAP is: «An asset is a present right of an entity to an economic benefit.»
The accounting equation is: Assets = Liabilities + Equity
A classification tree of assets is roughly:
Assets
- Tangible
- current assets
- cash
- inventory
- accounts
- receivalbe
- fixed assets
- land
- buildins
- equipment
- Intangible assets
- goodwill
- copyrights
- trademarks
- patents
- computer programs
- financial assets
- bonds
- stocks
Financial Asset
A
financial asset is a non-physical asset whose value is derived from a contractual claim, such as
- bank deposits,
- bonds, and
- participations in companies' share capital.
Security
A security is a tradable financial asset.
Securities can broadly be categorized into
- Debt securities (banknotes, bonds, deposits(?), debenture)
- Equity securities (common stock)
- Derivatives (forwards, futures, options, swaps)w
Collateral
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.
The collateral serves as a lender's protection against a borrower's default and so can be used to offset the loan if the borrower fails to pay the principal and interest satisfactorily under the terms of the lending agreement.
Asset Backed Securities
An asset-backed security (ABS) is a security whose income payments, and hence value, are derived from and collateralized (or "backed") by a specified pool of underlying assets.
Special Purpose Vehicle
A special purpose vehicle (SPV) is a legal entity created to fulfill narrow, specific or temporary objectives (such as to handle the securitization of asset backed securities).
SPEs are typically used by companies to isolate the firm from financial risk