An account entry is a financial operation that consists of the recording of an accounting movement by an issuing financial entity.
Broadly speaking, book entry represents a way of accounting by an issuing entity for titles or securities, listed on the Stock Market or not, generally in the form of computerized records. This, in an account intended for it.
Book entries are closely related to public debt and Treasury products for sale, and were launched in the late 1980s, replacing paper as a demonstration of buying and selling. In general terms, the book entry is an accounting entry with which the managing entities report on the public debt transaction by a client.
Contributions of the annotation into account
Among the contributions of the annotation into account are:
- The physical replacement of paper.
- The unnecessary intervention of a notary public (by replacing the paper in the sale), speeds up the circulation of the public debt title in the secondary markets and favors the financing circuit of the public administration with greater efficiency.
Elements involved in the annotation into account
The intervening elements of the annotation in account are:
- Annotations Center: It performs the function of central registry attached to the country's central bank, and is where the issues of the public Treasury, regions and public bodies with debt capacity are registered. The Central acts as guarantor of the issue, supports it, values and evaluates the conditions, makes the payments and amortizes the public debt.
- The Managing Entity: Keeps the record of the values individually for each client. In this way, vouchers formalized in the name of the holder of the public debt right are constituted. The vouchers cannot be sold or negotiated, since they do not represent the title, but rather certify the nominal ownership of the title through the annotation.
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