Accounting for Derivatives

Accounting for Derivatives
Author: Juan Ramirez
Publisher: John Wiley & Sons
Total Pages: 795
Release: 2015-01-23
Genre: Business & Economics
ISBN: 111881794X
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The derivative practitioner’s expert guide to IFRS 9 application Accounting for Derivatives explains the likely accounting implications of a proposed transaction on derivatives strategy, in alignment with the IFRS 9 standards. Written by a Big Four advisor, this book shares the author’s insights from working with companies to minimise the earnings volatility impact of hedging with derivatives. This second edition includes new chapters on hedging inflation risk and stock options, with new cases on special hedging situations including hedging components of commodity risk. This new edition also covers the accounting treatment of special derivatives situations, such as raising financing through commodity-linked loans, derivatives on own shares and convertible bonds. Cases are used extensively throughout the book, simulating a specific hedging strategy from its inception to maturity following a common pattern. Coverage includes instruments such as forwards, swaps, cross-currency swaps, and combinations of standard options, plus more complex derivatives like knock-in forwards, KIKO forwards, range accruals, and swaps in arrears. Under IFRS, derivatives that do not qualify for hedge accounting may significantly increase earnings volatility. Compliant application of hedge accounting requires expertise across both the standards and markets, with an appropriate balance between derivatives expertise and accounting knowledge. This book helps bridge the divide, providing comprehensive IFRS coverage from a practical perspective. Become familiar with the most common hedging instruments from an IFRS 9 perspective Examine FX risk and hedging of dividends, earnings, and net assets of foreign subsidies Learn new standards surrounding the hedge of commodities, equity, inflation, and foreign and domestic liabilities Challenge the qualification for hedge accounting as the ultimate objective IFRS 9 is set to replace IAS 39, and many practitioners will need to adjust their accounting policies and hedging strategies to conform to the new standard. Accounting for Derivatives is the only book to cover IFRS 9 specifically for the derivatives practitioner, with expert guidance and practical advice.

Derivatives Disclosure and Accounting

Derivatives Disclosure and Accounting
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities
Publisher: DIANE Publishing
Total Pages: 443
Release: 1999-08
Genre:
ISBN: 0788182692
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Hearing on financial derivatives and the new SEC's regulations and the FASB's proposal concerning derivatives. Witnesses: Thomas Logan and Patrick Montgomery, Treasury Mgmt. Assoc.; Kenneth Lehn, Prof., U. of Pittsburgh, former Deputy Chief Economist, SEC; William Miller, Assoc. for Invest. Mgmt. and Research; Joseph Bauman, International Swaps and Derivatives Assoc., Inc.; Stephen Wallman, Commissioner, SEC, and Michael Sutton and Eric Sirri; Kenneth Wolfe, Hershey Foods Corp.; Alex Pollock, Fed. Home Loan Bank of Chicago; William Roberts, Amer. Bankers Assoc.; and Edmund Jenkins, chmn., Financial Accounting Standards Board.

Accounting for Derivatives (US-GAAP)

Accounting for Derivatives (US-GAAP)
Author: Jörg Decker
Publisher: GRIN Verlag
Total Pages: 33
Release: 2003-07-23
Genre: Business & Economics
ISBN: 3638206440
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Seminar paper from the year 2003 in the subject Business economics - Accounting and Taxes, grade: 1,7 (A-), Technical University of Braunschweig (Economics - Controlling), course: Intenational Accounting, language: English, abstract: Some years before the financial scandal of Enron, which was mainly caused by the misuse of derivatives, the Financial Accounting Standard Board (FASB) began deliberating on issues related to derivatives and hedging transactions.1 The cause of thinking about changes in accounting for derivatives was a problematic situation in 1986 (comparable to current situation in Germany). For example, the applicatory use was very complicated and transactions with derivatives were not transparent enough. There were only clear standards for a few product groups and transactions with derivatives were not reported on the balance sheet.2 In consequence, first in 1986, a work program called Project on Financial Instruments was founded.3 In 1992 the members of the FASB received the responsibility in working on derivatives and continued improving the existing statement for about six years in more than 100 meetings. In June 1998 (06/16/1998) the Statement for Financial Accounting Standard (SFAS) No. 133 “Accounting for Derivative Instruments and Hedging Instruments” passed as an outcome of these efforts and is valid for every entity.4 Some public voices say, it is one of the most complex and controversial standards ever issued by the FASB.5 Statement No. 133 replaced FASB Statement No. 80 (Accounting for Future Contracts), No. 105 (Disclosure of Information about Financial Instruments with Off-Balance-Sheet Risk and Financial Instruments with Concentrations of Credit Risk) and No. 119 (Disclosures about Derivative Financial Instruments and Fair Value of Financial Instruments). 6 Also FASB Statement No. 52 (Foreign Currency Translation) and No. 107 (Disclosures about Fair Value of Financial Instruments) were amended, by including the “disclosure provisions about concentration of credit risk” form Statement No. 105 in Statement No.107. Despite the fact that the new Statement was issued in June 1998 it only was effective on financial statements for fiscal years beginning after June 15, 2000. [...] 1 Cp. Ernst & Young LLP (2002), p. 1. 2 Cp. Henne, T.(2000), p. 51. 3 Cp. Zander, D. (2000), p. 985. 4 Cp. Maulshagen ,A./Maulshagen, O. (1998), p. 2151. 5 Cp. International Treasurer (1999). 6 Cp. Ernst & Young LLP (2002), p. 1.

Derivatives Disclosure and Accounting

Derivatives Disclosure and Accounting
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities
Publisher:
Total Pages: 460
Release: 1998
Genre: Business & Economics
ISBN:
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Derivatives Handbook

Derivatives Handbook
Author: Robert J. Schwartz
Publisher: John Wiley & Sons
Total Pages: 766
Release: 1997-05-23
Genre: Business & Economics
ISBN: 9780471157656
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Der schlechte Ruf der Derivative gründet sich auf Mißbrauch und das hohe Risiko, das mit diesem oft exotisch wirkenden Finanzinstrument verbunden ist. Sie wollen sich unvoreingenommen, besser informieren? Anhand signifikanter Fallstudien führt dieses Buch Sie unter anderem in Techniken des Risikomanagement und Kontrollstrukturen ein.

Illustrative Disclosures on Derivative Loan Commitments

Illustrative Disclosures on Derivative Loan Commitments
Author: American Institute of Certified Public Accountants. Derivative Loan Commitments Task Force
Publisher:
Total Pages: 56
Release: 2005
Genre: Derivative securities
ISBN:
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Accounting for Derivative Instruments and Hedging Activities

Accounting for Derivative Instruments and Hedging Activities
Author: Veliota Drakopoulou
Publisher:
Total Pages: 16
Release: 2014
Genre:
ISBN:
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The goal of this research was to investigate the reasons behind the plethora of amendments of the FASB Accounting Pronouncements for Financial Instruments from 2002 to 2008. Entities have communicated their apprehensions that the existent disclosure requirements in SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” do not furnish sufficient input about how derivative and hedging activities influence an entity's financial position, financial performance, and cash flows. Correspondently, in 2008 the FASB issued Statement No. 161, “Disclosures about Derivative Instruments and Hedging Activities -- an amendment of FASB Statement No. 133.” The purpose of the study was to investigate the extent to which the thirty companies that comprise the Dow Jones Industrial Average complied with the new qualitative and quantitative disclosure requirements for derivative financial instruments of SFAS No. 161. Following the theoretical framework of corporate risk management, the quarterly financial statements (10Qs) of the thirty companies that comprise the Dow Jones Industrial Average were examined to determine whether companies complied with the qualitative requirements of SFAS No.161 to disclose their objectives for holding or issuing derivative financial instruments and their risk management policy as well as a description of the items being hedged. A surprising finding was that most companies failed with the requirements of SFAS No. 161 to disclose the required information about cash flow hedges, net investments in foreign operations and, fair value hedges. These findings suggest that although the FASB issued SFAS No. 161 to enhance derivative disclosures to enable users of financial statements to evaluate the success and significance of derivative instruments and hedging transactions on an entity's financial statements, companies might need additional time to implement the standard.

2008 CCH Accounting for Derivatives and Hedging

2008 CCH Accounting for Derivatives and Hedging
Author: James F. Green
Publisher: CCH
Total Pages: 1304
Release: 2007
Genre: Business & Economics
ISBN: 9780808091004
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CCH Accounting for Derivatives and Hedging offers professionals comprehensive guidance for applying the intricate and expansive requirements of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, and its amendments. Since its issuance, the FASB has amended and interpreted Statement 133 numerous times, making the accounting guidance for derivatives and hedging activities one of the most complex and frequently misunderstood accounting principles used in business today. CCH Accounting for Derivatives and Hedging helps users identify the nuances of accounting for these types of activities and provides practical guidance on how to apply these principles to typical situations currently encountered in practice in numerous types of transactions, including: fair value hedges; interest-rate swaps; cash flow hedges; embedded derivative instruments; net investment hedges; and disclosures. This expansive guide provides professionals with a practical resource by selectively combining information from the official text of the FASB, along with information drawn from the rules and releases of the SEC, consensuses of the EITF, and lessons learned from leading practitioners in the field.