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Home > Business and Economics > Finance and accounting > Accounting > Applying International Financial Reporting Standards: Financial Instruments
Applying International Financial Reporting Standards: Financial Instruments

Applying International Financial Reporting Standards: Financial Instruments

          
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About the Book

In 2005 over 7,000 European companies, including all UK public companies, will be required to adopt International Accounting Standards for the first time. Amongst the most complex and pervasive of those standards are those on accounting for financial instruments.This book explains what the requirements are and which requirements an entity will need to worry about. Starting with the basics and proceeding to address more complex issues, the book will provide an understanding of what an enterprise needs to do to comply with the standards as well as tips and techniques for making choices in application.Examples guide readers through the application of the standards to straight-forward situations as well as issues encountered by multi-national enterprises. The book also explains the reason why the standard-setters reached particular conclusions, and will provide a comparison of the IAS requirements with US and UK GAAP.* The only comprehensive book published by a UK publisher on this highly topical area.* Written by a leading expert in the field, who has been heavily involved in developing the proposals for the international accounting of financial instruments. * It will provide comparisons of US GAAP/UK GAAP and the International Accounting Standards.LexisNexis UK and CIMA Publishing are offering CIMA members a discount on this product. Please go to www lexisnexis.co.uk/cimapublishing to see if you qualify and to order.

Table of Contents:
"1. IntroductionOverview of IAS 32 & IAS 39 - what does it cover and what are the main requirements.Brief history - development based on US GAAP, Implementation guidance, Improvements.Key principles - four fundamental underlying principles and rationale - including merits of fair value.Benefits & criticisms - balance between pros and cons that led to "an imperfect solution".2. Just the basics!Who, why, what, when?Do I have to do hedge accounting?Classifying financial instruments - what do I have to do?Embedded derivatives - need to identify them.Disclosures.Application to simple situations - debtors, creditors, long-term debt, etc.3. What are financial instruments?Definition - and application of definition to financial instruments - not just derivatives.Examples Derivatives - definition and application of definition to examples. Explanation of basic derivatives - forwards, options, swaps.4. Scope of IAS 32 & IAS 39 - what is included and what is excluded?Scope exceptions and additions - including reasonsApplication to insuranceCommodity contracts5. Classification of financial instruments - trading, held-to-maturity, originated loans, available-for-sale.Consequences of classificationsExamples6. Embedded derivativesWhat are embedded derivatives?When must they be separated?How must they be separated?Examples7. Recognition - when to recognize a financial instrument on the balance sheet?Transaction costsSpecial situations - e.g. regular way securities transactions8. MeasurementBasic measurement rulesCurrent uses of fair value in accountingDetermining fair value - including sources and basic valuation modelsImpairment9. Gains and lossesIncome versus equity10. ReclassificationConsequences of reclassifications11. Hedge accountingNeed for hedge accounting - examplesQualifying hedge relationshipsWhat qualifies and why?What doesn't qualify and why?Macro-hedgingAccounting - fair value hedges, cash flow hedges and hedges of net investmentEffectivenessDocumentation12. DerecognitionThe components / control based approachFinancial assetsBasic modelMore complex situations - transfer of only part of a financial assetFinancial liabilities13. DisclosurePoliciesRisk managementHedgingOtherExamples of meaningful disclosures14. Offsetting15. PresentationDebt versus equity - including compound instruments and measurement considerationsExamples16. Transition / first-time application - both the specific rules in IAS 32 / IAS 39 and those expected in First-time Application Standard.Getting started - what to do to prepare for implementation - identifying financial instruments, designating hedges, classifying instruments, etc. Need to also consider comparative information.17. The future - further fair value, performance reportingUS GAAP Comparison - in each chapter (identify outright conflicts and those that can be avoided by discretionary choice)18. UK GAAP Comparison - separate chapter FRS 5FRED 23FRED 30, etc.Companies legislation"


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Product Details
  • ISBN-13: 9780754522577
  • Publisher: Lexisnexis UK
  • Publisher Imprint: Tolley Publishing
  • Sub Title: Financial Instruments
  • ISBN-10: 0754522571
  • Publisher Date: 30 Mar 2005
  • Binding: Paperback


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