onegentleguy:


The number of commercial transactions that are now denominated in foreign easily convertible currencies, especially the US Dollar, has astronomically increased in the last decade. ...mostly due to the benefit of retaining earnings in US Dollars, as opposed to the Naira, which is the national currency in Nigeria. One of such opportunity is the benefit of quick arbitrage that comes with shorting the system with a view to making some gains from FX differential. ...and since the managers of companies are increasingly becoming smarter/wiser, they've sought some of these means in their many quest to explore several channels to increase their earnings.

Again the International Financial Reporting Standards (...I think IFRS IAS 21) requires a foreign currency transaction to be recorded, on its initial recognition, in the functional or national currency of the concerned company, applying the spot FX rate at the date of the transaction.
IFRS IAS 20 goes further to require that at the end of each reporting accounting year-end, the foreign currency monetary items are required to be converted into the functional or national currency using the closing FX rate for the currency of the transaction.

Any resulting exchange rate difference (ie the FX rate at the date of the transaction and the FX rate at the close of the transaction) whether a profit or a loss, are required to be recognized in the Accounting Books of the company at the date when they each arise. ...and where the transaction is a continuing one, IFRS requires such investment to be initially recognized under Other Comprehensive Income and reclassified to a profit or loss position on the disposal or completion of the transaction or investment.

In summary, assets and liabilities are required to be translated and booked at the FX rate, at the end of the accounting period of each transaction. ...Income and expenses are required to be translated at the FX rate existing on the dates of each of these events. And lastly, FX rate differences are recognized under Other Comprehensive Income and subsequently reclassified to the Profit and Loss Account on the disposal or completion of the FX related transaction.

Hope this helps.

Regards.

Hmmmmmmmmmmmm

[quote author=Mpeace post=67072173]They collected the magic wand from him and gave him a bell. He is now our official bell ringer. Lol
Cp #jokes #nostonesintended[

Fair value call to action environment has disappear. Stocks are no more at their intrinsic value.

What are we going to do now to make money like the time of CP call to action?

Our Guru don join the mattress gang

@onegentleguy which of the big 4s we they now? The terminology too much

you are highly welcome

Infinitisi:
Hi onegentleguy,

What is your day job? Are you a stockbroker/investment banker?

Why do u ask my Oga?
There's really not much big deal in this one now. ...me thinks its just common sense and clearly mathematical.

But to answer ur question; No Sir. ...I am only an Engineer.
Though currently not practising. ...am just an ordinary Entrepreneur heading a small Enterprise in a different field.
Am just Onegentleguy Sir.

Regards.

Lol this had nothing to do with your last post. I have been observing your posts for a while. The language, style of presentation and analysis strikes me as that of a stockbroker/investment banker or someone who has had extensive training in investment analysis.

Just curious that is all.

onegentleguy:


Why do u ask my Oga?
There's really not much big deal in this one now. ...me thinks its just common sense and clearly mathematical.

But to answer ur question; No Sir. ...I am only an Engineer.
Though currently not practising. ...am just an ordinary Entrepreneur heading a small Enterprise in a different field.
Am just Onegentleguy Sir.

Regards.

onegentleguy:


Why do u ask my Oga?
There's really not much big deal in this one now. ...me thinks its just common sense and clearly mathematical.

But to answer ur question; No Sir. ...I am only an Engineer.
Though currently not practising. ...am just an ordinary Entrepreneur heading a small Enterprise in a different field.
Am just Onegentleguy Sir.

Regards.

Retired Engr u mean sir?

onegentleguy:


The number of commercial transactions that are now denominated in foreign easily convertible currencies, especially the US Dollar, has astronomically increased in the last decade. ...mostly due to the benefit of retaining earnings in US Dollars, as opposed to the Naira, which is the national currency in Nigeria. One of such opportunity is the benefit of quick arbitrage that comes with shorting the system with a view to making some gains from FX differential. ...and since the managers of companies are increasingly becoming smarter/wiser, they've sought some of these means in their many quest to explore several channels to increase their earnings.

Again the International Financial Reporting Standards (...I think IFRS IAS 21) requires a foreign currency transaction to be recorded, on its initial recognition, in the functional or national currency of the concerned company, applying the spot FX rate at the date of the transaction.
IFRS IAS 20 goes further to require that at the end of each reporting accounting year-end, the foreign currency monetary items are required to be converted into the functional or national currency using the closing FX rate for the currency of the transaction.

Any resulting exchange rate difference (ie the FX rate at the date of the transaction and the FX rate at the close of the transaction) whether a profit or a loss, are required to be recognized in the Accounting Books of the company at the date when they each arise. ...and where the transaction is a continuing one, IFRS requires such investment to be initially recognized under Other Comprehensive Income and reclassified to a profit or loss position on the disposal or completion of the transaction or investment.

In summary, assets and liabilities are required to be translated and booked at the FX rate, at the end of the accounting period of each transaction. ...Income and expenses are required to be translated at the FX rate existing on the dates of each of these events. And lastly, FX rate differences are recognized under Other Comprehensive Income and subsequently reclassified to the Profit and Loss Account on the disposal or completion of the FX related transaction.

Hope this helps.

Regards.

Thank you for the explanation.
Now that we have multiple exchange rate in the country, which of the rate is banks using for their FX valuation?

Jejebaba:


Retired Engr u mean sir?

...How can a small person like me retire?
What will u now ask the Legends in the house here to do?

onegentleguy:


...How can a small person like me retire?
What will u now ask the Legends in the house here to do?

Hahahaha, u be oga now with this wealth of experience and analysis and not the kind of analysis of someone that want to flush his 100k into the closet with betting.

In currentprice voice...........
chai see this construction company that reported over 200% increase in profit @ 2018 Q1.
This election will win more contract for them.

Which company is this my people?

gloriousdawn:


Thank you for the explanation.
Now that we have multiple exchange rate in the country, which of the rate is banks using for their FX valuation?

My understanding is that the banks are to adopt the new IFRS 9 reporting format.
...this will most likely have some drawdown impact on their earnings power, and by extension the shareholders fund.
I however believe that the big banks are in pole positions to wither the storm. ...they are currently well placed and with a stead to have that extra edge.
Amongst the 1st tiers, the likes of GTB, ZENITH, UBA readily comes to mind, while from the 2nd tiers, STANBICIBTC and ETI are also treading along the right path.
...I also like FCMB.

On IFRS 9, someone posted a related link on it here the other day. ...maybe u should try digging that up.

Infinitisi:
Lol this had nothing to do with your last post. I have been observing your posts for a while. The language, style of presentation and analysis strikes me as that of a stockbroker/investment banker or someone who has had extensive training in investment analysis.

Just curious that is all.

Chaii !! ...no ooo.
I be learner ooo my oga !!
...In fact, am still on the cradle path of the learning curve Sir.
Am here to learn from u all.

For its always a pleasure to be in the midst of u fine people !!

Cheers.

onegentleguy:


My understanding is that the banks are to adopt the new IFRS 9 reporting format.
...this will most likely have some drawdown impact on their earnings power, and by extension the shareholders fund.
I however believe that the big banks are in pole positions to wither the storm. ...they are currently well placed and with a stead to have that extra edge.
Amongst the 1st tiers, the likes of GTB, ZENITH, UBA readily comes to mind, while from the 2nd tiers, STANBICIBTC and ETI are also treading along the right path.
...I also like FCMB.

On IFRS 9, someone posted a related link on it here the other day. ...maybe u should digging that up.

Thank you.

gloriousdawn:


Thank you for the explanation.
Now that we have multiple exchange rate in the country, which of the rate is banks using for their FX valuation?

I just took a cursory look at ur question again. ...probably misconstrued it the 1st time.

I think the most fitting would likely be the I & E window exchange rate, but am not too sure about this.
Perhaps the Legends in the house can help out. ...or u could consult ur investment adviser or professional banker.

However my take in the initial post still stands.

Regards.

FO - Almost 5m total offers. Wonders of NSE.

They won't allow uba move

Fbnh ??

onegentleguy:


I just took a cursory look at ur question again. ...probably misconstrued it the 1st time.

I think the most fitting would probably be the I & E window exchange rate, but am not too sure about this.
Perhaps the Legends in the house can help out. ...or u could consult ur investment adviser or professional banker.

However my take in the initial post still stands.

Regards.

Appreciated my Oga.

Japaul welldone o.
Just need u to close the 40+ gap this week so that next week will usher in the bull of MAY.

Teeonly:
http://www.nse.com.ng/Financial_NewsDocs/21998_WEMA_BANK_PLC._FINANCIAL_STATEMENTS_APRIL_2018.pdf

what's d summary of dis biko....can't open....

[quote author=bolabiyi post=67076848]what's d summary of dis biko....can't open....

FYE17-EPS 5.8k

18Q1- EPS 8k

Price@26/01/2018- 88k

FBN full bid

locodemy:
Japaul welldone o.
Just need u to close the 40+ gap this week so that next week will usher in the bull of MAY.

dont panic sell o,unless this milost deal is not binding,we die here.

FCMB Q1 2018

http://www.nse.com.ng/Financial_NewsDocs/22003_FIRST_CITY_MONUMENT_BANK_PLC._FINANCIAL_STATEMENTS_APRIL_2018.pdf

locodemy:
In currentprice voice...........
chai see this construction company that reported over 200% increase in profit @ 2018 Q1.
This election will win more contract for them.

Which company is this my people?

JBERGER with that massive profit is 89naira stock (in cp's voice).