Chapter 15
The three of them turned their heads almost at the same time and looked behind them warily, only to find that Xu Chenxi, who was wearing professional attire, was covering her mouth and looking at the three of them with an embarrassed look on her face.
Wei Ziqi frowned slightly and took a deep look at Xu Chenxi, but did not speak.
Hu Shouyu also breathed a sigh of relief when he discovered that this was the woman who had just confronted Su Jianxia in the coffee shop. But when his eyes caught the woman's face, he suddenly froze.
"Why are you everywhere? You've already run into the mountains and you can still follow me." Su Jianxia walked up to Xu Chenxi with her hands on her hips and said dissatisfiedly.
Xu Chenxi looked at Wei Ziqi with a guilty conscience, but when she saw Su Jianxia coming to accuse her, she straightened her back immediately.
"I just came here to relax, why do you think I came with you."
"Who has nothing to do? 1. Financial instruments
A financial instrument is a contract that creates a financial asset of one party and a financial liability or equity instrument of another party.
Financial instruments include financial assets, financial liabilities and equity instruments
Contracts come in many forms and may or may not be written. Financial instrument contracts in practice are usually in written form
Non-contractual assets and liabilities are not financial instruments. For example, income tax payable is an obligation borne by an enterprise in accordance with tax regulations and is not an obligation based on a contract, so it does not meet the definition of a financial instrument.
2. Financial assets
Financial assets refer to cash held by an enterprise, equity instruments of other parties, and assets that meet one of the following conditions:
1. The contractual right to receive cash or other financial assets from other parties. For example, an enterprise's bank deposits, accounts receivable, notes receivable, and loans are all financial assets.
Prepaid accounts are not financial assets (they are non-monetary assets) because the future economic benefits generated are goods or services, not the right to receive cash or other financial assets.
2. Contractual rights to exchange financial assets or financial liabilities with other parties under potentially favorable conditions. For example, call options or put options held by the company, etc.
Call Option: Buying an option. It means that the buyer of an option has the right to buy a certain amount of the underlying asset at the exercise price during the validity period of the option contract.
Put options: Selling options means that the buyer of the option has the right to sell a certain amount of the underlying object at the execution price during the validity period of the option contract.
3. Non-derivative contracts that must or can be settled with the company's own equity instruments in the future, and the company will receive a variable number of its own equity instruments based on this contract
For example: Company A is a listed company. In order to repurchase its common shares, it signed a contract with Company B on February 1, 2021 and paid it 2 million in cash. According to the contract, Company B will deliver Company A’s common shares equivalent to 2 million yuan to Company A on July 1, 2021. The specific number of common shares that Company A can obtain is determined by the stock price of Company A on July 1, 2021
Company A should recognize a financial asset
4. Derivative contracts that must or can be settled with the enterprise's own equity instruments in the future, except for derivative contracts that exchange a fixed number of its own equity instruments for a fixed amount of cash or other financial assets.
For example: Company A paid Company B 2,000 yuan to purchase a call option based on its own common stock on February 1, 2020. According to the option contract, Company A has the right to purchase 1,000 shares of Company A's common shares from Company B at a price of 100 yuan per share, and the exercise date is June 30, 2021. On the exercise date, the option will be settled on the net common stock of Company A. Assuming that the market price per share of Company A's common stock on the exercise date is 125 yuan, and the fair value of the option is 25,000 yuan, Company A will receive 200 shares (25,000/125) of its own common stock to net the call option.
Company A should recognize the call option as a derivative financial asset
3. Derivatives
1. Financial instruments are divided into basic financial instruments (bonds, stocks, etc.) and derivatives (futures, options, swaps, etc.)
2. Derivatives refer to financial instruments or other contracts that fall within the scope of financial instrument standards and have the following characteristics:
① Its value changes with changes in specific interest rates, financial instrument prices, commodity prices, exchange rates, price indexes, fee indexes, credit ratings, credit indexes or other variables. The variables are non-financial variables (such as earthquake loss index in a specific region, temperature index of a specific city, etc.), this variable should not have a specific relationship with any party to the contract. Changes in the value of a derivative instrument depend on changes in the underlying variable
② Does not require an initial net investment, or requires a smaller initial net investment than other contracts that are expected to respond similarly to changes in market factors
Enterprises engaging in derivative transactions do not require an initial net investment, which usually means that no cash is required to be paid when signing a derivative contract.
③ Settlement at a certain date in the future
A derivative instrument is settled at a future date, indicating that a specific period of time is required for settlement of the derivative instrument. Derivatives are usually settled on a specific date in the future, but they may be settled on multiple dates in the future.
Common derivatives include forward contracts, futures contracts, swap contracts, options contracts, etc. Come here to relax in the wilderness, I see you followed me all the way here because there are no people in the store. "Su Jianxia said with a glare.
"You're such a good girl, why are you acting like a shrew?" Xu Chenxi looked disgusted, "What if I followed you here?"
When Su Jianxia heard this, he became even more angry. Just as he was about to shout louder to drive this woman away, he saw her walking around him and walking in front of Wei Ziqi.
"Mr. Wei, you agreed to give me a chance to get to know me, but why are you still avoiding me? Is this what a man should do?"
Wei Ziqi changed his usual embarrassment when seeing Xu Chenxi and said softly: "I didn't expect Miss Xu to be so obsessed and interested in me."
"I can't say it's obsession, it's just too strong. After all, we've only just met." Xu Chenxi looked at the mountain road behind Wei Ziqi, "But I didn't expect that Mr. Wei was not an ordinary person. No wonder he didn't treat me at all. not interested."
"Ms. Xu seems to be very confident. Men should be very interested in you?"
"As a woman, and a beautiful woman at that, I still have some confidence."
Wei Ziqi stared at Xu Chenxi's eyes for a while, then nodded and said, "Since Miss Xu has followed, let's come in and take a look together."
"Uncle, this person is just here to cause trouble. It has nothing to do with this matter. Why do you want her to come with you?" Before Xu Chenxi could say anything, Su Jianxia rushed up and got in between the two of them.
Xu Chenxi ignored Su Jianxia, but looked directly at Wei Ziqi, "Is this appropriate? Tell me your secret so easily."
Wei Ziqi turned around and walked towards the mountain road, "It's not really a secret, and Miss Xu should be quite interested, so why don't we come and take a look together."
With Wei Ziqi's permission, Xu Chenxi glanced at Su Jianxia provocatively, then walked around Su Jianxia with her head held high, and followed Wei Ziqi.
Su Jianxia stomped her feet angrily on the spot, glanced at Hu Shouyu who was staring at Xu Chenxi intently, and got angry again, "Hey, hey, what are you looking at? It's so beautiful? My wife and children are hot on the kang at home, why don't we come out? Staring at the beautiful women here, it turns out that all men look the same."
Hu Shouyu was startled by the sudden anger, and quickly waved his hand and said: "I misunderstood, I just feel like I have seen her somewhere, but some companies should manage financial assets according to their business model and financial assets." Contract cash flow characteristics, reasonably classify financial assets. Financial assets are generally divided into the following three categories:
①Financial assets measured at amortized cost; (bond investment)
②Financial assets measured at fair value and changes included in other comprehensive income
(Other bond investments, other equity instrument investments)
③Financial assets measured at fair value and changes included in current profits and losses
(trading financial assets)
Enterprises should reasonably classify financial liabilities based on their own business characteristics and risk management requirements.
Once the classification of financial assets and financial liabilities is determined, it cannot be changed at will.
1. Classification of financial assets
(1) Business model for enterprises to manage financial assets
1.Business model assessment
The business model by which a company manages financial assets refers to how a company manages its financial assets to generate cash flow. The business model determines the source of cash flow from the financial assets managed by the enterprise.
①Collect contract cash flow
②Sell financial assets
③ Or both
When an enterprise determines its business model for managing financial assets, it should pay attention to the following aspects:
(1) Enterprises should determine the business model for managing financial assets at the level of financial asset portfolios, rather than determining the business model item by item for individual financial assets.
(2) An enterprise may use multiple business models to manage its financial assets
(3) The enterprise shall determine the business model for managing financial assets based on the specific business objectives of managing financial assets determined by the key management personnel of the enterprise.
(4) The business model of an enterprise is not a voluntary designation by the enterprise, but an objective fact that can usually be reflected from the specific activities carried out by the enterprise to achieve its goals.
(5) Enterprises shall not determine the business model of financial assets based on circumstances that are reasonably expected not to occur.
If the actual cash flow of a financial asset is realized in a manner different from that expected when evaluating the business model, as long as the company has considered all relevant information available at the time when evaluating the business model, this difference does not constitute a prior period error in the company's financial statements, nor does it constitute a prior period error in the company's financial statements. Change the classification of the remaining financial assets held by the enterprise under this business model. However, companies should consider this information when evaluating business models for new financial assets
2. A business model with the goal of collecting contractual cash flows
In a business model that aims to collect contractual cash flows, the enterprise manages financial assets with the aim of achieving cash flows by collecting contractual payments during the life of the financial assets, rather than generating overall returns by holding and selling financial assets.
【Notice】
① In a business model with the goal of collecting contractual cash flows, the credit quality of financial assets affects the company's ability to collect contractual cash flows. Risk management activities to reduce potential credit losses due to credit deterioration are not inconsistent with a business model that aims to collect contractual cash flows. Therefore, even if an enterprise sells financial assets to reduce credit losses when their credit risk increases, the business model of the financial assets may still be a business model with the goal of collecting contractual cash flows.
② If an enterprise sells financial assets before the maturity date of the financial assets, even if it has nothing to do with credit risk management activities, the sale occurs only occasionally (even if the value is significant), or the value of the sale is very small individually and in aggregate (even if it occurs frequently) Under this situation, the business model of financial assets may still be aimed at collecting contractual cash flows.
If the business can explain the reasons for the sale and demonstrate that the sale does not reflect a change in the business model, the frequency of sales or the increase in the value of the sales over a specific period does not necessarily conflict with a business model that aims to collect contractual cash flows.
If the sale occurs when the financial asset is approaching maturity and the proceeds from the sale are close to the remaining contractual cash flows to be collected, the business model of the financial asset may still be aimed at collecting contractual cash flows.
[Textbook Example 13-1] Company A purchased a loan portfolio, and the portfolio included loans that had been credit-impaired. If the loan cannot be repaid on time, Company A will try its best to realize the contractual cash flow through various methods, such as contacting the borrower through email, phone or other methods for collection. At the same time, Company A signed an interest rate swap contract to convert the interest rate of the loan portfolio from floating interest rate to fixed interest rate. 【Cash flow hedging】
【Answer】
In this example, Company A’s business model for managing the loan portfolio is to collect contractual cash flows as its goal. Even if Company A is not expected to collect all contractual cash flows (some loans have suffered credit impairment), this will not affect its business model. In addition, the company's entry into interest rate swap contracts will not affect the business model of its loan portfolio.
3. Business model with the goal of collecting contractual cash flows and selling financial assets
In a business model with the goal of collecting contractual cash flows and selling financial assets, key managers of the enterprise believe that both collecting contractual cash flows and selling financial assets are indispensable to achieving their management objectives. For example, a business may aim to manage day-to-day liquidity needs while maintaining a specified rate of return, or to match the duration of a financial asset to the duration of an underlying liability
This business model involves sales that are typically more frequent and larger than a business model whose objective is to collect contractual cash flows. Because selling financial assets is one of the goals of this business model, there are no clear limits on the frequency or value of financial assets sold under this business model.
[Textbook Example 13-2] Bank A holds a portfolio of financial assets to meet its daily liquidity needs. In order to reduce its cost of managing liquidity needs, Bank A pays close attention to the returns of this financial asset portfolio, including the contractual cash flows collected and the gains or losses on the sale of financial assets.
【Answer】
In this example, Bank A’s business model for managing this financial asset portfolio aims to collect contractual cash flows and sell financial assets.
4. Other business models
If the enterprise's business model for managing financial assets is not aimed at collecting contractual cash flows, nor is it aimed at collecting contractual cash flows and selling financial assets, then the enterprise's business model for managing financial assets is another business model. [Sale of financial assets]
The financial assets should be classified as financial assets measured at fair value with changes included in current profits and losses.
For example, an enterprise holds financial assets for trading purposes or makes decisions and manages financial assets based on their fair value.
(2) Contractual cash flow characteristics of financial assets
The contractual cash flow characteristics of financial assets refer to the cash flow attributes stipulated in the financial instrument contract that reflect the economic characteristics of the relevant financial assets.
Enterprises are classified into financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income, and their contractual cash flow characteristics should be consistent with the basic lending arrangements. That is, the contractual cash flows generated by the relevant financial assets on a specific date are only payments of principal and interest based on the outstanding principal amount (claims)
Regardless of whether the financial asset takes the legal form of a loan, it may be a basic lending arrangement
(3) Classification of financial assets
1. I can’t recall the financial assets measured at amortized cost. "
"You just met her an hour ago, of course you are familiar with her." Su Jianxia said angrily.
Hu Shouyu shook his head and said: "No, it wasn't the meeting in the morning. I should have met her a long time ago. In a certain specific scene, I didn't look at her carefully during the meeting in the morning. I felt a deep familiarity after just taking a look at her. I feel it, but I can’t remember it now.”
"Isn't this a common way for you men to talk when you meet a beautiful woman?" Su Jianxia expressed doubts.
"Absolutely not. In my eyes, no woman is half as beautiful as Lian Zhi. It is impossible for me to be attracted to other women." Hu Shouyu quickly raised his watch in loyalty.
"That sounds nice." Su Jianxia muttered, "Let's go. If we don't walk for a while, we won't be able to keep up with them."
Only then did Hu Shouyu notice that Wei Ziqi and Xu Chenxi in front had already walked a little halfway up the mountain, and he quickly responded and followed.
This section of the mountain road seemed very long, but the mountain winds among the trees blew gently on a few people, and the leaves of the sycamore trees blocked the blazing sun, so the few people did not feel it while walking. Hot and tired, it seemed that it didn’t take long to reach the halfway point of the mountain.
The ascending section of the mountain road just ended here. Looking forward, everyone was shocked by the scene in front of them. Even the well-informed Wei Ziqi showed a fleeting look of surprise on his face.
The peak of this mountain seemed to have been cut off from the mountainside, leaving a huge flat space.
At this time, in this open space, there was a river flowing from nowhere. At the end of the river was a huge lake with a radius of about fifty meters.
The water in the lake is crystal clear and seems to have no impurities. Above the lake, several large waterwheels are slowly turning, carrying the water in the lake for watering through dozens of wooden pipes of different lengths. in the farmland surrounding the lake. The golden wheat in the farmland is swaying with the breeze. Even if it is not the season for wheat to mature, every wheat plant here looks like it is growing vigorously.
Hidden Mountain doesn't look like a very big mountain from the bottom. In a region like the south, anything with a few small hills can be considered a mountain.
But at this time, the area of farmland and lakes in front of everyone has far exceeded the actual area of Yinshan Mountain. Even the foot of the mountain with the widest plane is not as big as what is seen in front of them.
"Is this place still stuck in the agricultural era?" Xu Chenxi first recovered from the shock and couldn't help but sigh.
"How many people are needed to cultivate such a large area of wheat field?" Hu Shouyu squatted down and looked at the wheat in the field. "It's still far from the wheat harvest season, but the wheat here is about to mature. Oh, this is completely against the laws of nature.”
"Hey, who are you and how did you get in?"
Just as several people were looking at everything around them curiously, a childish voice suddenly came over.
Following the sound, a little boy about twelve or thirteen years old had his arms folded across his chest and was looking at his group of people with a serious face.
"Are you, Xiao Che?" Wei Ziqi looked at the little boy in front of him and asked with some uncertainty.
The boy was stunned for a moment, seemingly surprised that the man in front of him knew him. He took a few steps forward and looked up and down with his eyes wide open, "Uncle Ziqi?"
Wei Ziqi nodded, "I didn't expect you to be so old. The last time I saw you, you still looked like a five or six-year-old child."
"It's really you, Uncle Ziqi!" The boy said in surprise, trotting up to Wei Ziqi, "I should have thought of it, who else but you would know how to get in."
Wei Ziqi rubbed the boy's head, "Where is your father?"
"It's inside." The boy pointed to one direction of the farmland. "I have been coming to the field to look at it during this period. Dad said that the wheat is almost ripe again. This year is only half over, and it has already ripened for the third time. The rice at home is ripe." There’s so much food that I can’t even finish it.”
"I have been farming since I met him. I have been farming for two thousand years and I still haven't done enough." Wei Ziqi thought of a man in the field, facing the loess and his back to the sky, and a rare trace of emotion appeared on his face. smile.
"By the way, Uncle Ziqi, who are they?" The boy suddenly remembered the three people following him and asked curiously.
Su Jianxia didn't wait for the other two to reply, then took a step forward and rubbed the boy's head, "My little friend, my sister's name is Su Jianxia, and she is the fiancée of your uncle Ziqi."
After speaking, he raised his chin and glanced at Xu Chenxi, snorting coldly to express his victory.
The little boy reached out and pushed away Su Jianxia's hand on his head, "Sister, I am already two hundred and twelve years old this year."
The three of them were stunned for a moment, looking at this little boy with an immature face and voice, and they all felt a little unbelievable.
"My name is Ying Che. Since you are Uncle Ziqi's fiancée, I can round things off and call you sister."
"You are quite good at rounding things up." Su Jianxia was a little dumbfounded.
"Those two are my friends, one of them came to your father for help." Wei Ziqi explained.
"Help?" Ying Che looked back at the two people behind him, and finally locked his eyes on the backpack held in Hu Shouyu's hand.
"You can tolerate it until now." Ying Che shook his head, "Dad went to look for that thing before, but it seemed to have been poached. I didn't expect it to be in your hands.
I must have gotten a lot of benefits from it over the years, and if it comes back now, it's just karma. "
Hu Shouyu lowered his head and sighed, hesitated for a moment and then asked carefully, "Mr. Ying, do I still have a chance to terminate the contract with this jade statue now?"
