• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

FORWARD RATE AGREEMENT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › FORWARD RATE AGREEMENT

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 7, 2022 at 10:04 am #648229
    shaunak22
    Participant
    • Topics: 220
    • Replies: 41
    • ☆☆☆

    there was a point given in the BPP text which i could’t understand could you please explain the follwing point-

    note – FRA is not identical to currecny forwards but it is not an agreement directly linked to a transaction instead it is a deravative agreement that fixes the interest rate on the notional amount of money?

    DOUBT – what does the above point means when it says FRA is not directly linked to a transaction ? does it means whether to FRA agreement is executed or not does it depend on us?

    February 7, 2022 at 3:30 pm #648238
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54752
    • ☆☆☆☆☆

    As I explain in my free lectures, an FRA is an agreement to fix the interest rate on a fixed amount of borrowing or depositing. It is true that there does not have to be a separate transaction that requires there to be borrowing or depositing, but the note you quote is not really relevant for the exam because the financial manager will use FRA’s when there is a transaction involving borrowing or depositing.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Sylviazxy on CIMA B3 Introduction to Accounting
  • Mascuud on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • mirzayasir4@gmail.com on Business Documentation – ACCA Financial Accounting (FA) lectures
  • John Moffat on FA Chapter 23 Questions Group Accounts The Consolidated Statement of Financial Position (2)
  • John Moffat on PM Chapter 1 Questions Activity based costing

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in