A master netting arrangement provides?
AOne net settlement on default
BA fixed rate on all contracts
CConversion of debts to equity
DA government repayment guarantee
Answer & Solution
Correct answer: A. One net settlement on default
Such agreements net all covered instruments into one amount if the counterparty defaults or any contract terminates.
Keep practising Ind AS 32 Financial Instruments: Presentation
Browse all Ind AS 32 Financial Instruments: Presentation questions for CA Final, or explore more Financialreporting topics.
Related questions
Pro rata rights at a fixed price in any currency are?Which are 'entities' under Ind AS 32?Must a financial instrument contract be written?On reclassifying equity to liability, difference goes to?Puttable equity must sit in which class?Puttable equity must entitle holders to?Is a sinking fund offset against the debentures?Assets pledged for non-recourse liabilities are usually?