Accounting for Investments, Fixed Income Securities and Interest Rate Derivatives by Subramani, R. Venkata -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright Dedication Foreword Introduction Preface Acknowledgments Chapter 1: Fixed Income Securities—Theory

Learning Objectives Fixed Income Securities in General Basics of the Bond Market Definition of Financial Instruments Categories of Financial Instruments—An Overview Questions

Chapter 2: Fixed Income Securities—Fair Value through Profit or Loss

Learning Objectives Meaning and Definition of Fixed Income Securities Classification of Debt Securities as “Fair Value through Profit or Loss” Accounting for Fixed Income Securities Trade Life Cycle for Fixed Income Securities—Fair Value through Profit or Loss Corporate Action Additional Events in the Trade Life Cycle Complete Solution to the Illustration FX Revaluation and FX Translation Process Distinction between Capital Gain and Currency Gain Illustration 1: Investment in Bonds held for Trading Purposes Solution to Illustration 1: Investment in Bonds held for Trading Purposes Problem 1: Investment in Bonds (Trading) in Foreign Currency (AUD) Accounting Entries in Functional Currency Summary Questions

Chapter 3: Fixed Income Securities—Available-for-Sale

Chapter 4: Fixed Income Securities—Held-to-Maturity

Chapter 5: Presentation, Disclosures & Reclassification

Learning Objectives Relevant Accounting Standards General Disclosure as per IFRS 7 A. Significance of Financial Instruments for Financial Position and Performance Statement of Comprehensive Income Other Disclosures B. Qualitative Disclosures C. Quantitative Disclosures Amendments to IAS 39 & IFRS 7 (October 2008) Reclassification as per IFRS 9 Presentation of Financial Instruments Summary Exercise

Chapter 6: Interest Rate Derivatives—Theory

Learning Objectives Derivatives in a Financial Instrument Definition of Derivatives as per Accounting Standards Accounting Standards for Interest Rate Derivatives Differences between US GAAP and IFRS Over-the-Counter Contracts Exchange-Traded Derivative Contracts Benefits of Interest Rate Derivatives International Swaps and Derivatives Association (ISDA) Types of Interest Rate Derivatives Hedged or Hedging Instrument—Status of Various Financial Instruments Summary Exercise

Chapter 7: Interest Rate Swaps—Receive Fixed Pay Floating

Learning Objectives Meaning of Interest Rate Swap Definition of a Derivative Accounting for Interest Rate Swaps The Trade Life Cycle for Interest Rate Swaps Receive Fixed & Pay Floating—Illustration 1 Complete Solution to Illustration 1: Interest Rate Swap—Receive Fixed Pay Floating Problem1: Interest Rate Swap—Receive Fixed Pay Floating Solution to Problem 1: Interest Rate Swap—Receive Fixed Pay Floating Summary Questions

Chapter 8: Interest Rate Swaps—Pay Fixed Receive Floating

Learning Objectives Meaning of Receive Floating and Pay Fixed Type of Interest Rate Swap Accounting Standards The Trade Life Cycle for Interest Rate Swaps Pay Fixed and Receive Floating—Illustration 1 Complete Solution to Illustration 1: Interest Rate Swap—Receive Floating Pay Fixed Pay Fixed to Receive Floating—USD Solution Summary Questions

Chapter 9: Interest Rate Caps

Learning Objectives Interest Rate Caps—Description of the Product Accounting for interest rate caps The Trade Life Cycle for Interest Rate Caps Interest Rate Cap Instrument—An Illustration Complete Solution to the Illustration—Interest Rate Cap Problem 1: Interest Rate Cap—Pay Solution to Problem 1: Interest Rate Cap—Pay Problem 2: Interest Rate Cap—Pay Solution to Problem 2: Interest Rate Cap—Pay Accounting Entries in Functional Currency Problem 3: Interest Rate Cap—Receive Solution to Problem 3: Interest Rate Cap—Receive Problem 4: Interest Rate Cap—Receive Solution to Problem 4: Interest Rate Cap—Receive Problem 5: Interest Rate Cap—Receive Solution to Problem 5: Interest Rate Cap—Receive Accounting Entries in Functional Currency Summary Questions

Chapter 10: Interest Rate Floors

Learning Objectives Interest Rate Floors—Description of the Product Accounting for Interest Rate Floors The Trade Life Cycle for Interest Rate Floors Interest Rate Floor Instrument—An Illustration Complete Solution to Illustration Problem 1: Interest Rate Floor—Sale of Floor Instrument Solution to Problem 1: Interest Rate Floor Problem 2: Interest Rate Floor Solution to Problem 2: Interest Rate Floor Journal Entries in Functional Currency Problem 2: Interest Rate Floor Illustration: IRD Floor—Receive Comprehensive Solution to Illustration Problem 1: Interest Rate Floor (Receive) Solution to Problem 1: Interest Rate Floor (Receive) Problem 2: Interest Rate Floor (Receive) Solution to Problem 2: Interest Rate Floor (Receive) Accounting Entries in Functional Currency Problem 2: Interest Rate Floor (Receive) Summary Questions

Chapter 11: Interest Rate Collar

Learning Objectives Meaning of Interest Rate Collar Collar or Reverse Collar as a Hedging Instrument Accounting for Interest Rate Collar The Trade Life Cycle for an Interest Rate Collar Interest Rate Collar Instrument—An Illustration Complete Solution to the Illustration—Interest Rate Collar Problem 1: Interest Rate Collar Solution to Problem 1 Entries in Functional Currency Meaning of Interest Rate Reverse Collar Accounting for Interest Rate Reverse Collar The Trade Life Cycle for Interest Rate Reverse Collar Problem 1: Reverse Collar Solution to Problem 1: Reverse Collar Problem 2: Reverse Collar Solution to Problem 2: Reverse Collar Entries in Functional Currency Summary Questions

Chapter 12: Cross-Currency Swaps (XCCY Swaps)

Learning Objectives A Meaning of Cross-Currency Swaps (XCCY Swaps) Accounting for Cross-Currency Swaps The Trade Life Cycle for Cross-Currency Swaps Complete Solution to Illustration 1: Cross Currency Interest Rate Swap—USD/GBP Accounting Entries in Functional Currency Problem 1: Cross Currency Interest Rate Swap—USD/EUR Accounting Entries in Functional Currency Summary Questions

Bibliography Index