Download PDF by Graeme Tosen: A Practical Guide to IFRS for Derivatives and Structured

By Graeme Tosen

ISBN-10: 1843742675

ISBN-13: 9781843742678

Graeme Tosen, the chief for technical accounting at HBOS Treasury companies in London, has written a step by step advisor to knowing and imposing the hugely technical accounting ideas of the overseas monetary Reporting criteria (IFRS) that observe to derivatives and based finance.

Show description

Read Online or Download A Practical Guide to IFRS for Derivatives and Structured Finance PDF

Best investing books

Get Long-Term Secrets to Short-Term Trading PDF

Particularly take pleasure in analyzing this publication and it support me comprehend a few concerns round trading stocks. the writer has a transparent knowing of the markets and the way they function.

Read e-book online Ron's Road to Wealth: Insights for the Curious Investor PDF

Long term traders will research a lot from Ron Muhlenkamp's considerate reflections on what he has discovered approximately making an investment over a thirty-year interval of winning perform

Download PDF by Kevin Morrison: Living in a Material World: The Commodity Connection (Wiley

At a time while the area is grappling with emerging nutrients and effort costs and weather switch, dwelling in a fabric global presents an perception into a number of the contributing elements in the back of those demanding situations. The emergence of latest shoppers in China, India, Russia and the center East has further bold pageant to the ordinary assets which have been taken without any consideration within the constructed international.

Pierre Henry-Labordère's Analysis, Geometry, and Modeling in Finance: Advanced PDF

Research, Geometry, and Modeling in Finance: complex equipment in alternative Pricing is the 1st booklet that applies complicated analytical and geometrical tools utilized in physics and arithmetic to the monetary box. It even obtains new effects whilst purely approximate and partial ideas have been formerly on hand.

Extra info for A Practical Guide to IFRS for Derivatives and Structured Finance

Sample text

Example 2: Asset and liability mismatch An entity has a repurchase transaction with a special purpose entity (SPE) where it lends cash at a fixed rate and holds equity instruments as collateral and, as part of the same structure, a related derivative with another SPE. No hedge accounting is allowed and the derivative is therefore accounted for at fair value with movements in fair value going through profit or loss. Will the entity be allowed to fair value account for the loan to the first SPE to eliminate some of the income statement volatility created by the derivative?

No. You either have to separate the derivative or you are not allowed to. There is no option/choice provided in the standard. How are synthetic positions treated where the derivative is legally a separate contract? Where you have a separate debt contract and derivative, which is treated as one synthetic contract by the entity, you may not apply the embedded derivative rules. The embedded derivative rules only apply where a derivative is embedded in the terms of a hybrid contract. In the synthetic case here, each contract would be treated separately and the derivative will have to be classified as held-for-trading, even if the terms, risks and characteristics are closely related to the debt contract.

The legal or contractual form would not play a major role. Based on IAS 39, but specifically and more importantly the definition of a financial guarantee contract as set out in IAS 39, a credit derivative will only be treated as a financial guarantee contract if all of the following criteria are met. • There is a transfer of significant credit risk from the buyer to the seller. • The buyer has exposure to the referenced credit risk. • Payment under the derivative is only made on default by a debtor and not on any other factor such as changes in credit rating.

Download PDF sample

A Practical Guide to IFRS for Derivatives and Structured Finance by Graeme Tosen

by Kevin

Rated 4.94 of 5 – based on 47 votes