{"product_id":"accounting-for-financial-instruments-9780470699805","title":"Accounting for Financial Instruments","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eThis 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 which will give clear guidance on the subject.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003e1 Introduction 1\u003c\/p\u003e \u003cp\u003e1.1 Introduction 1\u003c\/p\u003e \u003cp\u003e1.2 Scope of the book 4\u003c\/p\u003e \u003cp\u003e1.3 Background 6\u003c\/p\u003e \u003cp\u003e1.4 Concerns over the misuse of financial instruments 8\u003c\/p\u003e \u003cp\u003e1.5 Complexity 10\u003c\/p\u003e \u003cp\u003e1.6 Revenue recognition 11\u003c\/p\u003e \u003cp\u003e1.7 Inappropriate reward incentives 11\u003c\/p\u003e \u003cp\u003e1.8 Protection for shareholders 15\u003c\/p\u003e \u003cp\u003e1.9 Measuring the ‘traders’ dilemma’ 16\u003c\/p\u003e \u003cp\u003e2 Accounting Foundations 21\u003c\/p\u003e \u003cp\u003e2.1 Introduction 21\u003c\/p\u003e \u003cp\u003e2.2 IASB improvements 22\u003c\/p\u003e \u003cp\u003e2.3 The framework 23\u003c\/p\u003e \u003cp\u003e2.4 Fair value or cost 24\u003c\/p\u003e \u003cp\u003e2.5 Artificial volatility 26\u003c\/p\u003e \u003cp\u003e2.6 Cost model 28\u003c\/p\u003e \u003cp\u003e2.7 Cherry-picking 28\u003c\/p\u003e \u003cp\u003e2.8 Subjective valuations 29\u003c\/p\u003e \u003cp\u003e2.9 Proactive vs. reactive 29\u003c\/p\u003e \u003cp\u003e2.10 Goodwill 29\u003c\/p\u003e \u003cp\u003e2.11 Market value accounting 30\u003c\/p\u003e \u003cp\u003e2.12 IFRS and its contribution to banking crises 31\u003c\/p\u003e \u003cp\u003e2.13 IFRS post-Enron 32\u003c\/p\u003e \u003cp\u003e2.14 Conclusion 41\u003c\/p\u003e \u003cp\u003e3 Corporate Governance 43\u003c\/p\u003e \u003cp\u003e3.1 Introduction 43\u003c\/p\u003e \u003cp\u003e3.2 Corporate governance 44\u003c\/p\u003e \u003cp\u003e3.3 Small vs. large shareholdings 45\u003c\/p\u003e \u003cp\u003e3.4 Traders’ dilemma 46\u003c\/p\u003e \u003cp\u003e3.5 Moral hazard 47\u003c\/p\u003e \u003cp\u003e3.6 Credit rating agencies I 48\u003c\/p\u003e \u003cp\u003e3.7 Shareholder democracy 49\u003c\/p\u003e \u003cp\u003e3.8 Structured products 50\u003c\/p\u003e \u003cp\u003e3.9 Revenue recognition 53\u003c\/p\u003e \u003cp\u003e3.10 Non-consolidation 54\u003c\/p\u003e \u003cp\u003e3.11 Credit rating agencies II 57\u003c\/p\u003e \u003cp\u003e3.12 Accounting standards and lobbying 59\u003c\/p\u003e \u003cp\u003e3.13 Investment entities 60\u003c\/p\u003e \u003cp\u003e3.14 Conclusion 61\u003c\/p\u003e \u003cp\u003eAppendix: Constant proportion debt obligations 62\u003c\/p\u003e \u003cp\u003e4 Hedge Accounting 65\u003c\/p\u003e \u003cp\u003e4.1 Introduction 65\u003c\/p\u003e \u003cp\u003e4.2 Accounting for forward contracts 66\u003c\/p\u003e \u003cp\u003e4.3 Accounting pre-IAS 39 67\u003c\/p\u003e \u003cp\u003e4.4 Artificial volatility 68\u003c\/p\u003e \u003cp\u003e4.5 Hedge accounting rules 69\u003c\/p\u003e \u003cp\u003e4.6 Example: Forward rate agreement 74\u003c\/p\u003e \u003cp\u003e4.7 Conclusion 76\u003c\/p\u003e \u003cp\u003e5 Illustrative Examples: Hedge Accounting 77\u003c\/p\u003e \u003cp\u003e5.1 Introduction 77\u003c\/p\u003e \u003cp\u003e5.2 Illustration: Fair value hedge 78\u003c\/p\u003e \u003cp\u003e5.3 Credit spreads 83\u003c\/p\u003e \u003cp\u003e5.4 Cash flow interest rate swaps 91\u003c\/p\u003e \u003cp\u003e5.5 Time value vs. change in interest rates 94\u003c\/p\u003e \u003cp\u003e5.6 Long method fair value hedge 97\u003c\/p\u003e \u003cp\u003e5.7 Foreign exchange hedge 100\u003c\/p\u003e \u003cp\u003eAppendix: Documentation 114\u003c\/p\u003e \u003cp\u003e6 Accounting for Structured Products (Market Risk) 117\u003c\/p\u003e \u003cp\u003e6.1 Introduction 117\u003c\/p\u003e \u003cp\u003e6.2 Risk adjusted return on capital 118\u003c\/p\u003e \u003cp\u003e6.3 Bifurcation rules 120\u003c\/p\u003e \u003cp\u003e6.4 The reward for risk 121\u003c\/p\u003e \u003cp\u003e6.5 Protection for shareholders 121\u003c\/p\u003e \u003cp\u003e6.6 Illustration: The structured products problem 122\u003c\/p\u003e \u003cp\u003e6.7 The accounting treatment under embedded derivative rules 126\u003c\/p\u003e \u003cp\u003e6.8 Past mistakes 127\u003c\/p\u003e \u003cp\u003e6.9 Conclusion 128\u003c\/p\u003e \u003cp\u003e\u003cbr\u003eAppendix 6.1: Overview of embedded derivative rules in international accounting reporting standards 129\u003c\/p\u003e \u003cp\u003eAppendix 6.2: Introduction to derivatives 129\u003c\/p\u003e \u003cp\u003e7 Accounting for Credit Risk 139\u003c\/p\u003e \u003cp\u003e7.1 Introduction 139\u003c\/p\u003e \u003cp\u003e7.2 Loan approvals 142\u003c\/p\u003e \u003cp\u003e7.3 Credit spreads 144\u003c\/p\u003e \u003cp\u003e7.4 Accounting standards 146\u003c\/p\u003e \u003cp\u003e7.5 Credit rating agencies 147\u003c\/p\u003e \u003cp\u003e7.6 Credit derivatives 148\u003c\/p\u003e \u003cp\u003e7.7 Accounting for loans 151\u003c\/p\u003e \u003cp\u003e7.8 Changes in the accounting standards 153\u003c\/p\u003e \u003cp\u003e7.9 Accounting rules on credit derivatives and financial guarantees 156\u003c\/p\u003e \u003cp\u003e7.10 Structured credit products: an extra layer of complexity 156\u003c\/p\u003e \u003cp\u003e8 Accounting for Structured Products (Credit Risk) 159\u003c\/p\u003e \u003cp\u003e8.1 Introduction 159\u003c\/p\u003e \u003cp\u003e8.2 Securitisation overview 160\u003c\/p\u003e \u003cp\u003e8.3 Regulatory arbitrage 162\u003c\/p\u003e \u003cp\u003e8.4 Prepayment risk synthetic securitisations 162\u003c\/p\u003e \u003cp\u003e8.5 Accounting for credit risk 164\u003c\/p\u003e \u003cp\u003e8.6 Accountants, regulators and credit agencies 165\u003c\/p\u003e \u003cp\u003e8.7 Complexity 168\u003c\/p\u003e \u003cp\u003e8.8 Disclosure 169\u003c\/p\u003e \u003cp\u003e8.9 Credit Suisse fiasco 169\u003c\/p\u003e \u003cp\u003e8.10 Monoline insurance companies 171\u003c\/p\u003e \u003cp\u003e8.11 Accounting implications 172\u003c\/p\u003e \u003cp\u003e8.12 First to default 173\u003c\/p\u003e \u003cp\u003e8.13 SFAS 157 valuations 174\u003c\/p\u003e \u003cp\u003e8.14 Conclusion 174\u003c\/p\u003e \u003cp\u003e9 Off-Balance Sheet Accounting 177\u003c\/p\u003e \u003cp\u003e9.1 Introduction 177\u003c\/p\u003e \u003cp\u003e9.2 Off-balance sheet manipulation 178\u003c\/p\u003e \u003cp\u003e9.3 Case studies: off-balance sheet 180\u003c\/p\u003e \u003cp\u003e9.4 Accounting implications 185\u003c\/p\u003e \u003cp\u003e10 Reconciliation 199\u003c\/p\u003e \u003cp\u003e10.1 Introduction 199\u003c\/p\u003e \u003cp\u003e10.2 Middle office 201\u003c\/p\u003e \u003cp\u003e10.3 Initial and variation margin 204\u003c\/p\u003e \u003cp\u003e10.4 Example: Illustration of reconciliation 208\u003c\/p\u003e \u003cp\u003e10.5 Conclusion 216\u003c\/p\u003e \u003cp\u003e11 Moving Towards Mark-to-Market Accounting 217\u003c\/p\u003e \u003cp\u003e11.1 Introduction 217\u003c\/p\u003e \u003cp\u003e11.2 Liquidity and fair value 217\u003c\/p\u003e \u003cp\u003e11.3 Banking vs. trading book 219\u003c\/p\u003e \u003cp\u003e11.4 VaR 223\u003c\/p\u003e \u003cp\u003e11.5 Basel 2 230\u003c\/p\u003e \u003cp\u003e11.6 Accounting for VaR and IFRS 7 235\u003c\/p\u003e \u003cp\u003e11.7 Conclusion 241\u003c\/p\u003e \u003cp\u003e12 Accounting for Insurance 243\u003c\/p\u003e \u003cp\u003e12.1 Introduction 243\u003c\/p\u003e \u003cp\u003e12.2 Significance of insurance risk 244\u003c\/p\u003e \u003cp\u003e12.3 IFRS vs. embedded value reporting 248\u003c\/p\u003e \u003cp\u003e12.4 Finite insurance and unbundling 250\u003c\/p\u003e \u003cp\u003e12.5 Other aspects of IFRS 4 252\u003c\/p\u003e \u003cp\u003e12.6 Phase two embedded value 253\u003c\/p\u003e \u003cp\u003eAppendix: The collapse of AIG 255\u003c\/p\u003e \u003cp\u003e13 Conclusion 259\u003c\/p\u003e \u003cp\u003eGlossary 265\u003c\/p\u003e \u003cp\u003eIndex 267\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default 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