Professional Documents
Culture Documents
P.M.B. 2000
DEPARTMENT OF ACCOUNTING
ASSIGNMENT TITLE:
ACCESS THE RELEVANCE OF REAL ASSET AND
FINANCIAL ASSET IN ECONOMIC GROWTH NIGERIA
PRESENTED BY:
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or a derivative that will or may be settled other than by
exchange of a fixed amount of cash or another financial
asset for a fixed number of the entity's own equity
instruments.
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Financial assets with fixed or determinable payments
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diminution of a "mismatch" with other financial assets or
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corporate bonds. Derivatives are securities, such as futures
Real assets are physical assets that have value due to their
substance and properties. Real assets include precious
metals, commodities, real estate, agricultural land,
machinery and oil. They are appropriate for inclusion in
most diversified portfolios because of their relatively low
correlation with financial assets such as stocks and bonds.
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Investing in real assets is particularly well-suited for
inflationary times because of their tendency to outperform
financial assets during such periods.
Characteristic Similarities
Functional Differences
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the same cannot be said of real estate properties, which
commonly take months to dispose of. Moreover, cash flows
generated by financial assets experience perpetual growth.
This is unlike real assets, with the exception of land, that
perpetually generate diminishing cash flows. The valuations
of buildings, for example, dip over time due to depreciation.
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Conclusion and Recommendations
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Agenda, the present Administration has drafted strategies
to combat some of the envisaged emerging challenges in
the course of implementing the 1st NIP and ultimately the
NV20:2020. Also, the reforms required to creating enabling
environment for mobilising the needed resources for
NV20:2020 are clearly mapped out.
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References
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Investopedia,
http://www.investopedia.com/terms/r/realasset.asp
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Shaib, B., A. Aliyu, and J. S. Bakshi (eds.) (1997).
Agricultural Zones. Nigeria: National Agricultural
Research Strategy Plan 1996-2010. Department of
Agricultural Sciences, Federal Ministry of Agriculture
and Natural Resources, Abuja, Nigeria, Intec Printers
Limited, Ibadan.
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