Relative Cashflow

Definition

Relative Cashflow. A Cash Flow as seen from the perspective of a given balance sheet or by a given entity, that is a flow of funds into or or out of that balance sheet or on the part of that entity.

This is a relative entity - the cash flow from a given perspective ("flow") being towards or away from some independent entity. This is not to be confused with a Cashflow Commitment, that is a concrete, independent description of a flow of funds as committed by some party. The latter is for example a feature of swaps and other derivatives, and in principle many or all instruments can be described as or reduced to (from one business perspective) some "Cashflow" in the sense of Cashflow Commitment.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.