Valuations

An overview of Hedge Accounting

Derivatives are often used to mitigate or offset risks (such as interest or currency risk) that arise from corporate activities. The standard accounting treatment for hedge instruments is that changes in fair value will have to be recorded in Profit and… read more

Mortage interest

Abolition of tax relief on mortgage interest: a risk or an opportunity?

A discussion has been raging for years in the Netherlands about making cuts in tax relief on mortgage interest, but so far moves to alter the system have come to nothing. But this look set to change. The tax relief on… read more

Value for valuation

The importance of determining the value of liabilities is increasing

When the financial world talks about market value, it usually concerns the asset side of the balance sheet. Asset managers are constantly determining the value of shares and bonds.

In turn, banks specialize in determining the value of loans and mortgages.… read more

Value of optionality in ‘Direkt vermarktung’

Alternative valuation method in the sustainable energy industry

Zanders has been involved in financing issues and transactions related to sustainable energy for several years now, supporting developers, power companies, and start-ups in a variety of countries.

As part of one of its consultancy projects, Zanders advised a Dutch… read more

Illiquid instruments

How to price illiquid or OTC instruments at market value

It’s hard to put a value on some things (think a loyal friend or a sunny day) but financial instruments shouldn’t fall into that category.

This article takes a look at calculating pricing for illiquid or OTC instruments not quoted… read more

The advantages of hedge accounting

An interest swap is a practical way of covering interest rate risks. Provided that a number of rules are observed, it is permissible to use hedge accounting in such cases.

In this article, senior consultant Mark van den Berg explains… read more