Discuss the Objective and Major Requirements of AASB 136

question 12

Essay

Discuss the objective and major requirements of AASB 136.

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Definitions:

SONIA

Sterling Overnight Index Average, an interest rate benchmark that reflects the average of the interest rates that banks in London pay to borrow sterling overnight from other financial institutions.

Tokyo Interbank Rate

The interest rate at which banks lend to each other in the Tokyo money market, similar to LIBOR in London.

Euribor

The interest rate at which banks lend to each other in euros within the Euro interbank market.

Par Value

The face value of the bond. The payment to the bondholder on the bond’s maturity date.