{"product_id":"accounting-for-financial-instruments-hardback-9780470699805","title":"Accounting for Financial Instruments (Hardback) 9780470699805","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eAccounting for Financial Instruments\u003c\/font\u003e\u003cbr\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003c\/p\u003e\n\u003cp\u003e\u003cfont size=\"4\"\u003eCormac Butler (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9780470699805, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 13 February 2009\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e304 pages\u003cbr\u003e24.8 x 17.7 x 2.2 cm, 0.652 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\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 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.\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\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\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance \u0026amp; accounting [\u003ca title=\"See our other books on Finance \u0026amp; accounting\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20\u0026amp;%20accounting%20%5BKF%5D%22\"\u003eKF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52173727498520,"sku":"9780470699805","price":56.39,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9780470699805.jpg?v=1781168494","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/accounting-for-financial-instruments-hardback-9780470699805","provider":"Freshly Printed Books","version":"1.0","type":"link"}