--%>
Assignment Help - homework help

What is forfaiting transaction

What is meant by the forfaiting transaction?

E

Expert

Verified

Forfaiting is the form of medium-term trade financing which is used to finance the sale of capital goods. A forfaiting transaction includes sale through exporter of the promissory notes which is signed by the exporter in favor of importer.  The forfait, generally a bank, purchases notes at the discount from face value.  Forfait not have recourse against the exporter in event of default by importer. Promissory notes normally extend out in series over the period of three to five years, with a note in series which gets matured in every six months.

   Related Questions in Financial Accounting

  • Q : Investors investing within the lion’s

    Explain why do investors invest within the lion’s share of their funds within the domestic securities?

    		•
  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

    		•
  • Q : Monetary/nonmonetary and temporal method

    Discuss dissimilarity in translation process between monetary/nonmonetary and temporal method.

    		•
  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

    		•
  • Q : Define the term Equipment Define the

    Define the term Equipment in Accountancy? Why they are used?

    		•
  • Q : Indirect world systematic risk Define

    Define and explain indirect world systematic risk.

    		•
  • Q : Identification of Responsibility Centre

    Identification of Responsibility Centre: Profit centre has been taken as the responsibility centre. Profit centre is the one in which both the revenue and costs are accounted for. The difference between them is the profit so the managers for this cent

    		•
  • Q : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:

  • Q : Personal identities-Organization health

    Personal identities: Generally employees like to work as they interact with animals and success motivates them, they learn new things in their routine job and they are a member to team.  But some job requirements like conducting euthanasia impact

    		•
  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

    		•