Advanced Accounting Items

This guide focus on some advanced concepts of financial derivatives and hedging.

Learn contract accounting in the companies that offer constructions and services.

The impact of accounting transactions may give rise to tax charges / credits in different periods to when the accounting transaction is recognised. Learn about how deferred tax accrues for those future tax consequences.

Share-based payments are a way for companies to compensate their employees with company ownership. Learn the impact of Share-based payments to financial statements.

Learn capitalised borrowing costs, aka, capitalised interest expense and construction interest expense. This is one type of financial costs that less commonly known by retail investors.

Revenue under service and construction contracts is recognized in proportion to performance. Learn how recognising revenue from long-term contracts with 2 examples.

Learn about convertible bonds. Convertible bonds are corporate bonds with a call option (right to purchase) on the company’s shares.

Learn about exchangeable bonds. Exchangeable bonds are corporate bonds with a call option on the shares of a company other than the bond issuer.

Learn about Mezzanine Debt. Mezzanine Debt is medium term debt provided by a specialised mezzanine lender or mezzanine department of a commercial bank.

Learn about Commercial Paper where it is an ‘IOU’ issued by a company for short term funding.

Learn about Medium Term Notes where they are obligations for periods of over a year and up to 5 years, but longer maturities are possible to suit investor demand.

Learn about Corporate Bonds where they are issued for minimum amounts of USD100 million and sometimes for billions of dollars. Maturities are generally 5 to 10 years but in most markets can be for 25 years or longer.