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IFRS13 – Fair Value Measurement: the time is now!

The year-end closing is approaching and with for many of companies a first application of IFRS13. Are you ready to comply with the new requirements? If not, it is still not too late to take action!

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IFRS13 – Fair Value Measurement: Fair value is not enough!

The introduction of IFRS13 will entail a major change in the fair value measurement of asset and liability. For starting accounting periods beginning on or after 1 January 2013 it is mandatory to take credit risk into account while valuing both assets and liabilities.

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Funds Transfer Pricing

Principles for implemeting an FTP framework

The basic idea of transfer pricing in financial institutions is to allocate costs and benefi ts equitably across the bank. This enables the creation of (isolated) internal P&Ls for diff erent departments. Hence, funds transfer pricing (FTP) helps management to measure performance and to focus on profi table markets and clients. FTP is also often the basis for performance-based remuneration. However, to draw the right conclusions certain principles should be applied when implementing an FTP framework.

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Reform in the OTC derivatives market

In 2010, the European Commission (EC) made a number of proposals concerning reform in the over-the-counter (OTC) derivatives market. The EC is of the opinion that OTC derivatives contributed to the worldwide contagion of the crisis in the American housing market. The results of the reform should deliver a safer and more effi cient OTC market in order to reduce these systemic risks.

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