Accounting for Financial Instruments

Author: Cormac Butler

Publisher: John Wiley & Sons

ISBN: 0470743751

Category: Business & Economics

Page: 296

View: 4791

This practical book shows how to deal with the complicated area of accounting of financial instruments. Containing a huge number of sophisticated worked examples, the book treats this complex subject in a way that gives clear guidance on the subject. In an introductory, controversial overview of the subject, the book highlights the mistakes that both auditing firms and the accounting standard setters are making, and demonstrates the contribution the International Financial Reporting Standards have made to the current credit crisis.

IAS 39 - Accounting for Financial Instruments

Author: Kathinka Kurz

Publisher: diplom.de

ISBN: 3832483284

Category: Business & Economics

Page: 88

View: 512

Inhaltsangabe:Abstract: Financial markets have developed extremely in volume and complexity in the last 20 years. International investments are booming, due to the general relaxation of capital controls and the increasing demand of international diversification by investors. Driven by these developments the use and variety of financial instruments has grown enormously. Risk management strategies that are crucial to business success can no longer be executed without the use of derivative instruments. Accounting standards have not kept pace with the dynamic development of financial markets and instruments. Concerns about proper accounting regulations for financial instruments, especially derivatives, have been sharpened by the publicity surrounding large derivative-instrument losses at several companies. Incidences like the breakdown of the Barings Bank and huge losses by the German Metallgesellschaft have captured the public s attention. One of the standard setters greatest challenges is to develop principles applicable to the full range of financial instruments and implement structures that will adapt to new products that will continue to develop. Considering these aspects, the focus of this paper is to illustrate how financial instruments are accounted for under the regulations of the International Accounting Standard (IAS) 39. It refers to the latest version, Revised IAS 39 , which was issued in December 2003 and has to be applied for the annual reporting period beginning on or after January 1. 2005. First, the general regulations of this standard are demonstrated followed by special hedge accounting regulations. An overall conclusion that points out critical issues of IAS 39 is provided at the end of the paper. IAS 39 is highly complex and one of the most criticized International Financial Reporting Standards (IFRS). In many cases, the adoption of IAS 39 will lead to significant changes compared to former accounting regulations applied. Therefore the paper is designed to provide a broad understanding of the standard and to facilitate its implementation. Inhaltsverzeichnis:Table of Contents: Executive Summary1 1.Scope2 2.Financial Instruments - General Definitions and Regulations4 2.1Overview4 2.2Financial Assets4 2.3Financial Liabilities5 2.4Five Categories of Financial Instruments5 2.4.1Financial Assets and Liabilities at Fair Value through Profit or Loss6 2.4.2Held-to-Maturity Investment Assets7 2.4.3Loans and [...]

Accounting for Financial Instruments

A Guide to Valuation and Risk Management

Author: Emanuel Camilleri,Roxanne Camilleri

Publisher: Routledge

ISBN: 1315299410

Category: Business & Economics

Page: 438

View: 7040

Accounting for Financial Instruments is about the accounting and regulatory framework associated with the acquisition and disposal of financial instruments; how to determine their value; how to manage the risk connected with them; and ultimately compile a business valuation report. Specifically, the book covers the following topics, amongst others: Accounting for Investments; Bills of exchange; Management of Financial Risks; Financial Analysis (including the Financial Analysis Report); Valuation of a business (including the Business Valuation Report) and Money laundering. Accounting for Financial Instruments fills a gap in the current literature for a comprehensive text that brings together relevant accounting concepts and valid regulatory framework, and related procedures regarding the management of financial instruments (investments), which are applicable in the modern business world. Understanding financial risk management allows the reader to comprehend the importance of analysing a business concern. This is achieved by presenting an analytical framework to illustrate that an entity’s performance is greatly influenced by its external and internal environments. The analysis of the external environment examines factors that impact an entity’s operational activities, strategic choices, and influence its opportunities and risks. The analysis of the internal environment applies accounting ratio analysis to an entity’s financial statements to examine various elements, including liquidity, profitability, asset utilisation, investment, working capital management and capital structure. The objective of the book is to provide a fundamental knowledge base for those who are interested in managing financial instruments (investments) or studying banking and finance or those who wish to make financial services, particularly banking and finance, their chosen career. Accounting for Financial Instruments is highly applicable to both professional accountants and auditors and students alike.

Financial Instruments

A Comprehensive Guide to Accounting and Reporting

Author: Rosemarie Sangiuolo,Leslie F. Seidman

Publisher: CCH

ISBN: 9780808092162

Category: Business & Economics

Page: 1200

View: 3379

Financial Instruments: A Comprehensive Guide to Accounting and Reporting is written for practicing accountants and other professionals who need to understand the accounting for financial instruments. This unique book pulls together all of the existing accounting literature on financial instruments into one volume, organizes it logically, and describes the requirements as simply as possible. This comprehensive, topic-based approach will save practitioners time and effort in researching accounting issues.

Financial Instruments and Institutions

Accounting and Disclosure Rules

Author: Stephen G. Ryan

Publisher: John Wiley & Sons

ISBN: 0470139579

Category: Business & Economics

Page: 616

View: 3540

This book is an authoritative guide to the accounting and disclosure rules for financial institutions and instruments. It provides guidance from a “fair value” perspective and demonstrates the simplest and most natural measurement basis for reporting financial instruments, as is relevant for thrifts, mortgage banks, commercial banks, and property-casualty and life insurers.

CCH Accounting for Financial Assets and Liabilities: Sales, Transfers, and Extinguishments

Interpretations of FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities--A Replacement of FASB Statement

Author: John E. Stewart,James F. Green,Accounting Research Manager Group

Publisher: CCH

ISBN: 9780808090571

Category: Business & Economics

Page: 786

View: 4774

CCH Accounting for Leases analyzes FASB Statement No. 13, Accounting for Leases, which was released in November 1976, and the numerous successive Interpretations, Technical Bulletins, and Emerging Issue Task Force consensus issues that have been issued since then. Since Statement's 13 issuance, the FASB has amended the Statement 18 times, issued 6 Interpretations, and 12 Technical Bulletins. Further, the EITF has addressed leasing transactions in more than 30 different Issues (excluding issues related to consolidations of special purpose entities). This publication delves into the complex nature of the criteria set through defining a lease and determining whether it should be accounted for as a sale/purchase or as an operating lease. CCH Accounting for Leases also includes various interpretations and commentary related to investment tax credits (ITC) in the event ITC is reinstated in the future.

Financial Reporting for Financial Instruments

Author: Stephen G. Ryan

Publisher: Now Pub

ISBN: 9781601986160

Category: Business & Economics

Page: 176

View: 9509

Financial Reporting for Financial Instruments develops the foundational knowledge related to financial instruments and the markets in which they trade, financial institutions and their internal decision-making and external circumstances, and currently required and credible alternative financial reporting for financial instruments. It provides an introduction to fundamental issues in financial reporting for financial instruments that is accessible to readers who do not have extensive prior knowledge of structured finance transactions and of the accounting for those transactions.

Manual of Accounting: Financial Instruments 2012

Author: PwC

Publisher: A&C Black

ISBN: 1847669050

Category: Business & Economics

Page: 1000

View: 9485

Accounting for financial instruments is one of the most complex and taxing areas in accounting today that needs to be understood by all practicing accountants. The International Financial Reporting Standards that govern this area of accounting are often difficult to understand and interpret. PwC’s Manual of Accounting - Financial Instruments 2012 is a thoroughly comprehensive, clearly explained and informative guide to these standards. It contains practical worked examples and extracts from company financial statements that help to illustrate the explanations. Key changes from previous edition include updated guidance on: IFRS 9 - including aspects on liabilities issued in November 2010; Consequential amendments of IFRS 9; IASB amendment to IFRS 7, ’Financial instruments: Presentation’, on derecognition; Annual improvements 2010; IFRIC agenda decisions; New extracts and examples. This book draws on the combined expertise and experience of financial instrument specialists in PWC’s Global Accounting Consulting Services team. It will be of particular interest to preparers and users of IFRS financial statements and others who require a detailed knowledge of financial instruments accounting. Analysts, academics and students will also find it a valuable reference tool.

IFRS 9

Understanding Financial Instruments and their Accounting

Author: Sunil Kumar Kansal

Publisher: Wiley

ISBN: 9781118592274

Category: Business & Economics

Page: 350

View: 3331

Detailed product information alongside relevant IFRS 9 guidelines for more streamlined implementation IFRS 9 – Understanding Financial Instruments and their Accounting is a practical and informative guide to financial instruments and accounting issues in the context of the new global framework for financial reporting. The first handbook of its kind, this book provides detailed information about over eighty products alongside IFRS 9 accounting, merging the knowledge base and skill sets of two distinct functions into a single useful reference. Practical implementation guidance covers both derivative and non-derivative instruments, and real-world illustrations provide deeper insight into the everyday accounting entries and analyses that IFRS 9 entails. Readers will gain both the background knowledge and the application skills to help ease the adoption of IFRS 9 with minimal disruption to daily operations. With the exception of optional adoption of the hedge accounting requirements, the International Accounting Standards Board mandated complete IFRS 9 adoption no later than January, 2018. The new standard replaces IAS 39, and consists of classification and measurement, impairment, and hedge accounting. Successful implementation requires an in-depth understanding of cash flows and the mechanics of financial instruments. IFRS 9 – Understanding Financial Instruments and their Accounting simplifies IFRS 9 principles and explains the implementation process, helping readers to: Understand the handling of derivative and non-derivative financial instruments Clarify IFRS disclosure requirements and suggested accounting entries Examine the correlation and divergence between IFRS 9 and IAS 39 frameworks Understand the impact of transitioning from IAS 39 to IFRS 9 Develop an effective IFRS implementation strategy with understanding of the requirements and procedures Existing coverage of IFRS 9 tends to be restrictive, with little attention paid to product guidance, leaving a gap in the knowledge required for successful worldwide adoption. This book fills that gap, providing a complete resource with full explanation and illustrative examples.

CCH Accounting for Derivatives and Hedging 2008

Author: James F. Green

Publisher: CCH

ISBN: 9780808091004

Category: Business & Economics

Page: 1274

View: 8194

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.

Accounting for Derivatives (US-GAAP)

Author: Jörg Decker

Publisher: GRIN Verlag

ISBN: 3638206440

Category: Business & Economics

Page: 30

View: 7136

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, 20 entries in the bibliography, 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.

Accounting for Risk, Hedging and Complex Contracts

Author: A. Rashad Abdel-Khalik

Publisher: Routledge

ISBN: 1136489290

Category: Business & Economics

Page: 564

View: 9157

With the exponential growth in financial derivatives, accounting standards setters have had to keep pace and devise new ways of accounting for transactions involving these instruments, especially hedging activities. Accounting for Risk, Hedging and Complex Contracts addresses the essential elements of these developments, exploring accounting as related to today's most relevant topics - risk, hedging, insurance, reinsurance, and more. The book begins by providing a basic foundation by discussing the concepts of risk, risk types and measurement, and risk management. It then introduces readers to the nature and valuation of free standing options, swaps, forward and futures as well as of embedded derivatives. Discussion and illustrations of the cash flow hedge and fair value hedge accounting treatments are offered in both single currency and multiple currency environments, including hedging net investment in foreign operations. The final chapter is devoted to the disclosure of financial instruments and hedging activities. The combination of these topics makes the book a must-have resource and reference in the field. With discussions of the basic tools and instruments, examinations of the related accounting, and case studies to help students apply their knowledge, this book is an essential, self-contained source for upper-level undergraduate and masters accounting students looking develop an understanding of accounting for today’s financial realities.

Aiming for Global Accounting Standards

Author: Kees Camfferman,Stephen A. Zeff

Publisher: Oxford University Press, USA

ISBN: 0199646317

Category: Business & Economics

Page: 728

View: 7843

From 2001 to 2011, the International Accounting Standards Board (IASB) and its International Financial Reporting Standards (IFRSs), acquired a central position in the practice and regulation of financial reporting around the world. As a unique instance of a private-sector body setting standards with legal force in many jurisdictions, the IASB's rise to prominence has been accompanied by vivid political debates about its governance and accountability. Similarly, the IASB's often innovative attempts to change the face of financial reporting have made it the centre of numerous controversies. This book traces the history of the IASB from its foundation as successor to the International Accounting Standards Committee (IASC), and discusses its operation, changing membership and leadership, the development of its standards, and their reception in jurisdictions around the world. The book gives particular attention to the IASB's relationships with the European Union, the United States, and Japan, as well as to the impact of the financial crisis on the IASB's work. By its in-depth coverage of the history of the IASB, the book provides essential background information that will enrich the perspective of everyone who has to deal with IFRSs or the IASB at a technical or policy-making level.

New financial instruments

disclosure and accounting

Author: Organisation for Economic Co-operation and Development

Publisher: Organization for Economic

ISBN: N.A

Category: Business & Economics

Page: 233

View: 7477