05169nam 2200601Ia 450 991014612660332120230721021104.01-119-20698-71-282-02824-397866120282430-470-74375-1(CKB)1000000000725085(EBL)437495(OCoLC)367591190(SSID)ssj0000096540(PQKBManifestationID)12025268(PQKBTitleCode)TC0000096540(PQKBWorkID)10097276(PQKB)11718771(MiAaPQ)EBC437495(EXLCZ)99100000000072508520090223d2009 uy 0engur|n|---|||||txtccrAccounting for financial instruments[electronic resource] /Cormac ButlerChichester, England ;Hoboken, NJ Wileyc20091 online resource (298 p.)Description based upon print version of record.0-470-69980-9 Includes bibliographical references and index.Accounting for Financial Instruments; Contents; Preface; 1 Introduction; 1.1 Introduction; 1.2 Scope of the book; 1.3 Background; 1.4 Concerns over the misuse of financial instruments; 1.5 Complexity; 1.6 Revenue recognition; 1.7 Inappropriate reward incentives; 1.8 Protection for shareholders; 1.9 Measuring the 'traders' dilemma'; 2 Accounting Foundations; 2.1 Introduction; 2.2 IASB improvements; 2.3 The framework; 2.4 Fair value or cost; 2.5 Artificial volatility; 2.6 Cost model; 2.7 Cherry-picking; 2.8 Subjective valuations; 2.9 Proactive vs. reactive; 2.10 Goodwill2.11 Market value accounting2.12 IFRS and its contribution to banking crises; 2.13 IFRS post-Enron; 2.14 Conclusion; 3 Corporate Governance; 3.1 Introduction; 3.2 Corporate governance; 3.3 Small vs. large shareholdings; 3.4 Traders' dilemma; 3.5 Moral hazard; 3.6 Credit rating agencies I; 3.7 Shareholder democracy; 3.8 Structured products; 3.9 Revenue recognition; 3.10 Non-consolidation; 3.11 Credit rating agencies II; 3.12 Accounting standards and lobbying; 3.13 Investment entities; 3.14 Conclusion; Appendix: Constant proportion debt obligations; 4 Hedge Accounting; 4.1 Introduction4.2 Accounting for forward contracts4.3 Accounting pre-IAS 39; 4.4 Artificial volatility; 4.5 Hedge accounting rules; 4.6 Example: Forward rate agreement; 4.7 Conclusion; 5 Illustrative Examples: Hedge Accounting; 5.1 Introduction; 5.2 Illustration: Fair value hedge; 5.3 Credit spreads; 5.4 Cash flow interest rate swaps; 5.5 Time value vs. change in interest rates; 5.6 Long method fair value hedge; 5.7 Foreign exchange hedge; Appendix: Documentation; 6 Accounting for Structured Products (Market Risk); 6.1 Introduction; 6.2 Risk adjusted return on capital; 6.3 Bifurcation rules6.4 The reward for risk6.5 Protection for shareholders; 6.6 Illustration: The structured products problem; 6.7 The accounting treatment under embedded derivative rules; 6.8 Past mistakes; 6.9 Conclusion; Appendix 6.1: Overview of embedded derivative rules in international accounting reporting standards; Appendix 6.2: Introduction to derivatives; 7 Accounting for Credit Risk; 7.1 Introduction; 7.2 Loan approvals; 7.3 Credit spreads; 7.4 Accounting standards; 7.5 Credit rating agencies; 7.6 Credit derivatives; 7.7 Accounting for loans; 7.8 Changes in the accounting standards7.9 Accounting rules on credit derivatives and financial guarantees7.10 Structured credit products: an extra layer of complexity; 8 Accounting for Structured Products (Credit Risk); 8.1 Introduction; 8.2 Securitisation overview; 8.3 Regulatory arbitrage; 8.4 Prepayment risk synthetic securitisations; 8.5 Accounting for credit risk; 8.6 Accountants, regulators and credit agencies; 8.7 Complexity; 8.8 Disclosure; 8.9 Credit Suisse fiasco; 8.10 Monoline insurance companies; 8.11 Accounting implications; 8.12 First to default; 8.13 SFAS 157 valuations; 8.14 Conclusion9 Off-Balance Sheet AccountingThis 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.Financial instrumentsAccountingFinancial instrumentsAccountingStandardsFinancial instrumentsAccounting.Financial instrumentsAccountingStandards.657.76Butler Cormac920403MiAaPQMiAaPQMiAaPQBOOK9910146126603321Accounting for financial instruments2064423UNINA