For example, the Republic of Korea has undertaken measures to encourage the issuance of bonds by SMEs.10 One objective of the Asian bond market initiative11 is to increase bond financing options for smaller companies in Asia.

Article 57The financial liabilities refers to the following liabilities of an enterprise

There have also been initiatives in some countries to increase bond financing options for SMEs.

The termination of recognition shall refer to the writing off the financial asset or financial liability from the account or balance sheet of the enterprise concerned.

(1)In the active market, the quoted prices of an enterprise for the financial assets it holds or the financial liabilities it plans to assume shall be the present actual offer, while the quoted prices of an enterprise for the financial assets it plans to acquire or the financial liabilities it has assumed shall be the available charge.

Article 27Where an enterprise (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different from that regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same time recognize the new financial liability.

Article 24When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.

Article 30The financial assets and financial liabilities initially recognized by an enterprise shall be measured at their fair values.

3 Having professionals, technical conditions, funds and securities required for carrying out securities lending and borrowing business

Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing financial liability, it shall terminated the recognition of the existing financial liability or part of it, and at the same time recognize the financial liability after revising the contractual stipulations as a new financial liability.

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

The application of funds of an insurance company is limited to bank deposits, trading of government and financial bonds and other forms of fund application stipulated by the State Council.

Article 2The term financial instruments refers to the contracts under which the financial assets of an enterprise are formed and the financial liability or right instruments of any other entity are formed.

Has this name been circulated to non banking financial institutions, i.e., pension, insurance and financial leasing companies, foreign exchange bureaus, securities firms and credit unions?

Business and financial sector management

Article 21 In case an enterprise raises debt funds under law in forms of loans, issuing bonds or financial leases and so on, it shall define the purpose of fund raising, make necessary decisions on capital structure in accordance with the fund costs, debt risks and reasonable fund demands and conclude a written contract.

(13) As regards tradable financial liabilities, it is required to separately list the beginning of period and end of period fair value of offered tradable bonds, financial liabilities which are specified to be measured on fair value and whose fluctuations are included in the current profits and losses, derivative financial liabilities and other tradable financial liabilities.

Financial establishments, insurance, real estate, and services provided to companies

Of the roughly 200 trillion in global financial assets today, almost three quarters are in some kind of debt instrument, including bank loans, corporate bonds, and government securities. The derivatives market certainly helps spread risk more widely than this superficial calculation implies, but the basic point stands.

Article 14 An enterprise may accept the capital contribution made by an investor in the form of monetary, real object, intangible assets, stock equity, or specific creditor's right and so on, among which, the specific creditor's right means the convertible bonds issued by the enterprise under law and the creditor's rights that are converted into equity under the related provisions.

Section 5 Securities Lending and Borrowing Business

(3)Where there is no available offer or charge for a financial asset or financial liability, but there is no any significant change to the economic environment after the latest transaction day, the enterprise shall adopt the market quoted price of the latest transaction to determine the fair value of the said financial asset or financial liability.

In order to solve the problem of non payments to one another, to make use of the potential of commercial banks and of bills of exchange and promissory notes issued by enterprises

Governments and international financial institutions could consider providing bond guarantees to those municipalities.

CDOs are a form of financial alchemy special purpose vehicles that buy the financial equivalent of lead (low rated mortgaged backed securities) and finance themselves mostly with the financial equivalent of gold (highly sought after AAA bonds). This transformation is based on one sound principle and two shaky ones.

(2)The official written documents on risk management or investment strategies of the enterprise concerned have recorded that the combination of said financial assets, the combination of said financial liabilities, or the combination of said financial assets and financial liabilities will be managed and evaluated on the basis of their fair values and be reported to the key management personnel.

Where there is any significant change to the economic environment after the latest transaction day, the enterprise concerned shall adjust its market quoted price of the latest transaction by referring to the available prices or interest rates of similar financial assets or financial liabilities so as to determine the fair value of the said financial asset or financial liability.

Where an enterprise transfers any of its assets used for repaying its financial liabilities into any institution or to establish a trust, and the prevailing obligations to repay the liabilities remain to exist, it shall not terminate the recognition of the said financial liability and the transferred asset.

An important criterion for the choice of additional measures should be the extent of their influence over broad financing conditions in the private economy. For example, purchases of bonds issued by euro area non financial corporations (NFCs) would probably have some direct pass through effect on firms financing costs.

Article 50 A securities firm that carries out securities lending and borrowing business shall sign a securities lending and borrowing contract with the customer, and shall open a customer securities guarantee account with the securities registration and settlement organs, and a customer funds guarantee account with the designated commercial bank in the name of the securities firm in accordance with the provisions of the securities regulatory agency under the State Council.

Second, the profits and earnings of corporations and financial institutions will not rebound as fast as the consensus predicts, as weak economic growth, deflationary pressures, and surging defaults on corporate bonds will limit firms pricing power and keep profit margins low.

23 Transfer of Financial Assets

The Fund apos s bond portfolio was helped by its overweighting in United States and United Kingdom bonds and an underweight position in yen bonds.

Debt markets would also benefit from such an initiative. Blurring the line between the private and the state owned sectors would, over time, reduce the latter s privileged access to and overuse of bank financing, leading to the expansion of corporate bond markets.

Report of the Expert Meeting on Improving the Competitiveness of SMEs in Developing Countries The Role of Finance, Including e Finance to Enhance Enterprise Development, TD B COM.3 39.

24 Hedging.

24 Hedging.

Griesa, for his part, showed no compunction about upending a financial order in which market based exchanges of old bonds for new ones are used to restructure the debts of countries unable to pay. By making it impossible for sovereigns to restructure, he effectively rendered them unable to borrow in the United States.

Moreover, when providing their capital to a financial firm, bondholders can generally be expected to obtain contractual terms that reflect the risks they face. Indeed, the need to compensate bondholders for risks could provide market discipline when financial firms operate in ways that can be expected to produce increased risks down the road, they should expect to pay with, say, higher interest rates or tighter conditions.

Governments should not only avoid protecting bondholders after the fact, when the details of a bailout are worked out but should also make their commitment to this approach clear in advance. Some of the benefits of a government policy that induces bondholders to insist on stricter terms when financial firms take larger risks would not be fully realized if bondholders believed that the government might protect their interests in the event of a bailout.

The funds for securities investment and other similar funds as held by an enterprise shall not be classified as a loan or account receivable.

CHICAGO It is universally recognized that a key factor underlying the 2007 2008 financial crisis was the diffusion of collateralized debt obligations (CDOs), the infamous special purpose vehicles that transformed lower rated debt into highly rated debt. As these structures lost popularity on Wall Street, however, they gained popularity on the other side of the Atlantic.

(11)The equity instruments as issued by an enterprise shall be subject to the Accounting Standards for Enterprises No.

Article 29Where an enterprise buys back part of its financial liabilities, it shall distribute, on the repo day, the carrying amount of the whole financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose recognition has already been terminated.

Article 29 The securities firm that is engaged in securities assets management business, capital and securities financing business, securities related finance product sales should get knowledge of identity, property, income status, securities investment experience and risk preference of customers according to prescribed procedure, and record as well as keep the information in written or electronic form.