Nov 8, 2022 10:29
1 yr ago
25 viewers *
Spanish term
Spain
MBA with real business experience
Native in: English 
, Spanish
Works in: Spanish to English, Catalan to English
pasivos financieros propios adquiridos
Spanish to English
Bus/Financial
Accounting
Report on consolidated financial statements with the following phrase under a heading related to "Derecognition of financial liabilities":
"También los pasivos financieros propios adquiridos se darán de baja, aun cuando sea con la intención de recolocarlos en el futuro."
I'm not clear on the "propios adquiridos" aspect and also "recolocarlos". Any help would be much appreciated.
"También los pasivos financieros propios adquiridos se darán de baja, aun cuando sea con la intención de recolocarlos en el futuro."
I'm not clear on the "propios adquiridos" aspect and also "recolocarlos". Any help would be much appreciated.
Proposed translations
(English)
Proposed translations
+2
9 hrs
Robert Carter
Mexico
Mexico
Native in English
Works in field
Mexico
Translating full-time since 1998
Native in: English (Variant: British) 
Works in: Spanish to English
Related KudoZ points
:
60
Selected
repurchased financial liabilities
Securities, yes; but not "equities", rather "bonds" (and similar debt instruments).
What I believe "adquiridos" refers to here is when the company "buys back", for example, its own bonds or other debt instruments (pasivos financieros), hence "repurchased" (see example below, "Repurchase of a debt instrument").
The term "recolocarlos" refers to "reselling them".
I do not believe you need to account for the "propios" in the English term as it's implicit that it's the entity's own liabilities, not some third party's.
The text in question appears to be derived from IFRS 9, "Financial Instruments".
Check the similarity of the texts below:
"La empresa dará de baja un pasivo financiero cuando la obligación se haya extinguido. También dará de baja los pasivos financieros propios que adquiera, aunque sea con la intención de recolocarlos en el futuro.
Si se produjese un intercambio de instrumentos de deuda entre un prestamista y un prestatario, siempre que éstos tengan condiciones sustancialmente diferentes, se registrará la baja del pasivo financiero original y se reconocerá el nuevo pasivo financiero que surja. De la misma forma se registrará una modificación sustancial de las condiciones actuales de un pasivo financiero."
https://www.contabilidadtk.es/pasivos-financieros.html
"Derecognition of financial liabilities
A financial liability should be removed from the balance sheet when, and only when, it is extinguished, that is, when the obligation specified in the contract is either discharged or cancelled or expires. [IFRS 9, paragraph 3.3.1] Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms, or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability."
https://www.iasplus.com/en/standards/ifrs/ifrs9
"Extinguishment of a financial liability
Derecognition resulting from extinguishment of a financial liability
Another instance when entity [sic] derecognises a financial liability (or a part of a financial liability) is when it is extinguished—i.e. when the obligation specified in the contract is discharged, cancelled or expires (IFRS 9.3.3.1).
A financial liability (or part of it) is extinguished when the debtor either (IFRS 9 B3.3.1):
discharges the liability (or part of it) by paying the creditor, normally with cash, other financial assets, goods or services; or
is legally released from primary responsibility for the liability (or part of it) either by process of law or by the creditor.
…
Repurchase of a debt instrument
If an issuer of a debt instrument repurchases that instrument, the debt is extinguished even if the issuer is a market maker in that instrument or intends to resell it in the near term (IFRS 9.B3.3.2)."
https://ifrscommunity.com/knowledge-base/derecognition-of-fi...
What I believe "adquiridos" refers to here is when the company "buys back", for example, its own bonds or other debt instruments (pasivos financieros), hence "repurchased" (see example below, "Repurchase of a debt instrument").
The term "recolocarlos" refers to "reselling them".
I do not believe you need to account for the "propios" in the English term as it's implicit that it's the entity's own liabilities, not some third party's.
The text in question appears to be derived from IFRS 9, "Financial Instruments".
Check the similarity of the texts below:
"La empresa dará de baja un pasivo financiero cuando la obligación se haya extinguido. También dará de baja los pasivos financieros propios que adquiera, aunque sea con la intención de recolocarlos en el futuro.
Si se produjese un intercambio de instrumentos de deuda entre un prestamista y un prestatario, siempre que éstos tengan condiciones sustancialmente diferentes, se registrará la baja del pasivo financiero original y se reconocerá el nuevo pasivo financiero que surja. De la misma forma se registrará una modificación sustancial de las condiciones actuales de un pasivo financiero."
https://www.contabilidadtk.es/pasivos-financieros.html
"Derecognition of financial liabilities
A financial liability should be removed from the balance sheet when, and only when, it is extinguished, that is, when the obligation specified in the contract is either discharged or cancelled or expires. [IFRS 9, paragraph 3.3.1] Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms, or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability."
https://www.iasplus.com/en/standards/ifrs/ifrs9
"Extinguishment of a financial liability
Derecognition resulting from extinguishment of a financial liability
Another instance when entity [sic] derecognises a financial liability (or a part of a financial liability) is when it is extinguished—i.e. when the obligation specified in the contract is discharged, cancelled or expires (IFRS 9.3.3.1).
A financial liability (or part of it) is extinguished when the debtor either (IFRS 9 B3.3.1):
discharges the liability (or part of it) by paying the creditor, normally with cash, other financial assets, goods or services; or
is legally released from primary responsibility for the liability (or part of it) either by process of law or by the creditor.
…
Repurchase of a debt instrument
If an issuer of a debt instrument repurchases that instrument, the debt is extinguished even if the issuer is a market maker in that instrument or intends to resell it in the near term (IFRS 9.B3.3.2)."
https://ifrscommunity.com/knowledge-base/derecognition-of-fi...
Peer comment(s):
| agree |
patinba
3 hrs
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Thanks, Pat. Anything you could add regarding the discussion above? You're a lot more knowledgeable about this subject than I am.
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| neutral |
Francois Boye
: Why did you dismiss 'propio'. It has a specific meaning in accounting //Buyback is a concept only applied to shares. //Then you say debt recall. Financial concepts are precise.//A borrower can recall his/her debt by repaying it before maturity.
7 hrs
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So entities do not buy back their bonds, or are bonds not debt? That's clearly false. //No, a debt is recalled by the lender, not the borrower. //You didn't translate "propio" in your answer either!
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| agree |
John Rynne
1 day 19 hrs
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Thanks for injecting some sanity, John.
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4 KudoZ points awarded for this answer.
Comment: "Selected automatically based on peer agreement."
+2
1 hr
Rodrigo Yanez
Chile
Chile
Native in Spanish
Works in field
Chile
ENSP Translator/Developer/Economist
Native in: Spanish
Works in: English to Spanish, Spanish to English
own financial liabilities acquired
Dejo ejemplo
Example sentence:
it also derecognises own financial liabilities acquired even when the intention is to resell them in the future
+1
2 hrs
Adrian MM.
Austria
Austria
Native in English
Specializes in field
Austria
Retd.T&I, Barrister & Austro-Advokat
Native in: English (Variants: British, Scottish)
Works in: Spanish to English, English to Spanish, French to English, and 5 more.
Related KudoZ points
:
75
direct 'personal' financial liabilities assumed
< > "recolocarlos" - unless posted as a separate question, 'reallocate' (re-position or re-enter them in the accounts).
The ProZ SPA/GER explanation kicks off with: '..likely to mean such liabilities as result directly out of legal dealings, as opposed - for instance - to insurance claims that, as it were, arise 'indrectly'-only, namely out of legal transactions (e.g. contracts of insurance).' ?
note the previous question:
PASIVOS FINANCIEROS
Se registran como pasivos financieros aquellos instrumentos emitidos, incurridos o asumidos, que suponen para la Sociedad una *obligación contractual directoa o indirecta* atendiento a su realidad económica, de entregar efectivo u otro activo financiero o intercambiar activos o pasivos financieros con terceros en *condiciones desfavorables*.
Baja de pasivos financieros
Los pasivos financieros se dan de baja cuando se ha extinguido la obligación inherente a los mismos. Los **pasivos financieros propios adquiridos** se darán de baja, aún cuando sea con la intención de recolocarlos en el futuro.
The ProZ SPA/GER explanation kicks off with: '..likely to mean such liabilities as result directly out of legal dealings, as opposed - for instance - to insurance claims that, as it were, arise 'indrectly'-only, namely out of legal transactions (e.g. contracts of insurance).' ?
note the previous question:
PASIVOS FINANCIEROS
Se registran como pasivos financieros aquellos instrumentos emitidos, incurridos o asumidos, que suponen para la Sociedad una *obligación contractual directoa o indirecta* atendiento a su realidad económica, de entregar efectivo u otro activo financiero o intercambiar activos o pasivos financieros con terceros en *condiciones desfavorables*.
Baja de pasivos financieros
Los pasivos financieros se dan de baja cuando se ha extinguido la obligación inherente a los mismos. Los **pasivos financieros propios adquiridos** se darán de baja, aún cuando sea con la intención de recolocarlos en el futuro.
Example sentence:
ProZ: pasivos financieros propios adquiridos German translation: selbst eingegangene Verbindlichkeiten ('self-induced ...Und "financieros" kannst Du unter den Tisch fallen lassen > leave out the financials' liabilities') Wolfgang Hummel (German Lawyer)
The term accrued liabilities refers to any expenses a business has yet to pay after an accounting period.
Peer comment(s):
| agree |
Sofía Creo
: También pensé en "allocation" para "recolocar". Tal vez se pueda usar algo como "to be allocated in the future / to be then allocated".
57 mins
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| neutral |
philgoddard
: As usual, you've made this too complicated for us ordinary mortals, and I don't see the difference between "dealings" and "transactions". But you seem to be suggesting that "propios" doesn't mean "own", and that may be correct.
1 hr
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7 hrs
Francois Boye
United States
United States
United States
An economic geek with social skills
Native in: French
Works in: English to French, French to English, Spanish to English, and 1 more.
Related KudoZ points
:
129
Acquired equities
Pasivos financieros propios = own financial liabilities = equities
Equities are the liabilities that companies owe to their shareholders.
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Note added at 12 hrs (2022-11-08 23:09:55 GMT)
--------------------------------------------------
What Is Equity?
Equity, typically referred to as shareholders' equity (or owners' equity for privately held companies), represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation. In the case of acquisition, it is the value of company sales minus any liabilities owed by the company not transferred with the sale.
Source: Investopedia
Equities are the liabilities that companies owe to their shareholders.
--------------------------------------------------
Note added at 12 hrs (2022-11-08 23:09:55 GMT)
--------------------------------------------------
What Is Equity?
Equity, typically referred to as shareholders' equity (or owners' equity for privately held companies), represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation. In the case of acquisition, it is the value of company sales minus any liabilities owed by the company not transferred with the sale.
Source: Investopedia
Peer comment(s):
| agree |
Catherine Earle
1 hr
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Thanks!
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| neutral |
Robert Carter
: I think that's the wrong type of security here; what it's basically referring to are bonds (or other debt instruments). Equities don't count as liabilities because an entitity isn't in debt to its shareholders for anything more than its value.
2 hrs
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Disagree! See above additional information.
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| disagree |
John Rynne
: most decidedly not equities
1 day 21 hrs
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Discussion
Just go to the site you quoted first, Investopedia, and look at its entry on the accounting equation:
"What Is the Accounting Equation?
The accounting equation states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity."
https://www.investopedia.com/terms/a/accounting-equation.asp
To claim otherwise is to undermine any credibility you may have as an expert in this field.
As for me, this is where I leave the discussion.
I am going back to my statement that equity is a liability. Please look at this example of balance sheet; as in all balance sheets, equity is classified as a liability.
https://www.bing.com/images/search?view=detailV2&ccid=537hto...
Repaying a debt before maturity is called a recall. The financiall press is full of inappropriate concepts.
Buyback is associated with shares or stocks. Its purpose is to boost the market price of stocks, .
Yes, financial concepts are precise, but debt recall is something else entirely. And of course, debts can only be recalled by creditors, not debtors. If a company repurchases its own bonds (i.e., which it issues as a debtor), it isn't "recalling its debts," it's doing the opposite, i.e., paying them off, hence they are derecognized as liabilities in the accounts.
I shouldn't need to explain that to you though.
Companies very clearly do buy back their own debt instruments, bonds specifically:
"On occasion, a company will buy back its own bonds before the maturity date, recognizing a gain or loss on the repurchase. Generally, this buyback is done with the intent to retire the bonds and get the liability off the company’s balance sheet. However, on rare occasions, it is conceivable a company could buy back bonds with the intent to hold those bonds for a time and then reissue them."
https://issuu.com/uacpa/docs/jan2021_-the_journal_entry_sm_8...
"A bond repurchase, or bond buyback, refers to the process whereby the issuer approaches the open market and repurchases its bonds from holders. If the bonds are trading at less than their par value, issuers can use this tool opportunistically to acquire debt..."
https://issuu.com/uacpa/docs/jan2021_-the_journal_entry_sm_8...
I can only assume that you don't understand the difference between stocks and bonds.
If an entity is overstretched, i.e., has more liabilities than assets, then it has negative shareholder equity. So how much would it have to repay its shareholders then?
I'm far from being a financial or economic expert myself, but it's weird to me that as a self-professed "economic geek" you don't seem to understand this basic accounting concept. It's only out of respect for your avowed area of expertise that I posted my comment as neutral; in actual fact, I couldn't disagree with it more.
https://www.iasplus.com/en/projects/completed/fi/derecogniti...
https://www.proz.com/kudoz/english-to-spanish/bus-financial/...