Accounting for Derivatives: Deal, Accrual, Revaluation, Result

This self-study guide clearly explains both the concepts and practice of accounting for derivatives, the calculation of financial values and the role of accounting for derivatives in risk management.
A section on credit derivatives is included so you update your knowledge on using these instruments as a risk management tool.

This book will ensure you have the accounting skills you need to protect against credit default risk.

In six comprehensive modules, this book clearly explains each aspect of accounting for derivatives including:

• the core concepts such as the difference between the finance and accounting views, internal controls and the accounting life-cycle;
• money market instruments including conventions on interest rate calculation and accrual;
• money market accounting for cash instruments, certificates of deposit and repos;
• accounting for interest rate risk management, swaps and futures;
• foreign exchange market accounting and accounting for instruments including spots, forwards, options and currency swaps;
• the development of international standards including the American FAS133 and the European IAS 39 and hedge accounting;
  

Understand the steps involved. The accounting is detailed and the concepts are illustrated with precise journal entries – from the phase of transaction initiation through revaluation, to recognition of results and final settlement.

Test your knowledge with self-study exercises at the end of each module.

Who should read this?
For practicing accountants, treasurers, auditors and financial software developers as an important reference tool.
For finance directors and regulators as a refresher.