Accounting for Investments, Volume 2

A comprehensive guide to new and existing accounting practices for fixed income securities and interest rate derivatives The financial crisis forced accounting standard setters and market regulators around the globe to come up with new proposals for modifying existing practices for investment accounting. Accounting for Investments, Volume 2: Fixed Income and Interest Rate Derivatives covers these revised standards, as well as those not yet implemented, in detail. Beginning with an overview of the financial products affected by these changes defining each product, the way it is structured, its advantages and disadvantages, and the different events in the trade life cycle the book then examines the information that anyone, person or institution, holding fixed income security and interest rate investments must record. Offers a comprehensive overview of financial products including fixed income and interest rate derivatives like interest rate swaps, caps, floors, collars, cross currency swaps, and more Follows the trade life cycle of each product Explains how new and anticipated changes in investment accounting affect the investment world Accurately recording and reporting investments across financial products requires extensive knowledge both of new and existing practices, and Accounting for Investments, Volume 2, Fixed Income Securities and Interest Rate Derivatives covers this important topic in-depth, making it an invaluable resource for professional and novice accountants alike.

A comprehensive guide to new and existing accounting practicesfor fixed income securities and interest rate derivativesThe financial crisis forced accounting standard setters andmarket regulators around the globe to come up with new proposalsfor modifying existing practices for investment accounting.Accounting for Investments, Volume 2: Fixed Income and InterestRate Derivatives covers these revised standards, as well asthose not yet implemented, in detail.Beginning with an overview of the financial products affected bythese changes--defining each product, the way it isstructured, its advantages and disadvantages, and the differentevents in the trade life cycle--the book then examines theinformation that anyone, person or institution, holding fixedincome security and interest rate investments must record.* Offers a comprehensive overview of financial products includingfixed income and interest rate derivatives like interest rateswaps, caps, floors, collars, cross currency swaps, and more* Follows the trade life cycle of each product* Explains how new and anticipated changes in investmentaccounting affect the investment worldAccurately recording and reporting investments across financialproducts requires extensive knowledge both of new and existingpractices, and Accounting for Investments, Volume 2, FixedIncome Securities and Interest Rate Derivatives covers thisimportant topic in-depth, making it an invaluable resource forprofessional and novice accountants alike.

Foreword xxiiiIntroduction xxvPreface xxviiAcknowledgments xxxiChapter 1 Fixed Income Securities--Theory 1Chapter 2 Fixed Income Securities--Fair Value through Profi t or Loss 11Chapter 3 Fixed Income Securities--Available-for-Sale 113Chapter 4 Fixed Income Securities--Held-to-Maturity 195Chapter 5 Presentation, Disclosures & Reclassifi cation 251Chapter 6 Interest Rate Derivatives--Theory 267Chapter 7 Interest Rate Swaps--Receive Fixed Pay Floating 283Chapter 8 Interest Rate Swaps--Pay Fixed Receive Floating 335Chapter 9 Interest Rate Caps 389Chapter 10 Interest Rate Floors 483Chapter 11 Interest Rate Collar 563Chapter 12 Cross-Currency Swaps (XCCY Swaps) 631Bibliography 705Index 707