What is main part of a structured financial instrument in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: main part of a structured financial instrument

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Consists of the original financial instrument host contract and the embedded derivative structures embedded derivatives that are closely related to the economic characteristics and host contract risks. According to IAS 39 these must not be separated from the original financial instrument. A structured financial instrument consists of a main part and a split derivative.

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• Key Concepts: 
  The main part of a structured financial instrument is the underlying asset or assets that are used to create the instrument. This component of a structured financial instrument is referred to as the “underlying” and is typically composed of stocks, bonds, commodities, currencies, or other assets. The underlying asset or assets are used to create the structured financial instrument and determine its value. 
  
  How to use it: 
  The FS-BA-PM-AFP Accounting for Financial Products component of SAP allows users to manage and track the underlying assets that make up a structured financial instrument. This component provides users with the ability to view and analyze the underlying assets, as well as track their performance over time. Additionally, users can use this component to create reports and analyze the performance of their structured financial instruments. 
  
  Tips & Tricks: 
  When using the FS-BA-PM-AFP Accounting for Financial Products component of SAP, it is important to remember that the underlying assets are what determine the value of a structured financial instrument. Therefore, it is important to monitor and track the performance of these underlying assets in order to ensure that your structured financial instruments are performing as expected. 
  
  Related Information: 
  For more information on how to use the FS-BA-PM-AFP Accounting for Financial Products component of SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this component effectively.