Accounting for Derivatives: Advanced Hedging under IFRS 9 (The Wiley Finance Series) - Hardcover

Ramirez, Juan

Hardcover

ISBN 10: 1118817974 ISBN 13: 9781118817971

Publisher: Wiley, 2015

Synopsis

The derivative practitioner s expert guide to IFRS 9 application Accounting for Derivatives explains the likely accounting implications of a proposed transaction on derivatives strategy, in alignment with the IFRS 9 standards. Written by a Big Four advisor, this book shares the author s insights from working with companies to minimise the earnings volatility impact of hedging with derivatives. This second edition includes new chapters on hedging inflation risk and stock options, with new cases on special hedging situations including hedging components of commodity risk. This new edition also covers the accounting treatment of special derivatives situations, such as raising financing through commodity-linked loans, derivatives on own shares and convertible bonds. Cases are used extensively throughout the book, simulating a specific hedging strategy from its inception to maturity following a common pattern. Coverage includes instruments such as forwards, swaps, cross-currency swaps, and combinations of standard options, plus more complex derivatives like knock-in forwards, KIKO forwards, range accruals, and swaps in arrears. Under IFRS, derivatives that do not qualify for hedge accounting may significantly increase earnings volatility. Compliant application of hedge accounting requires expertise across both the standards and markets, with an appropriate balance between derivatives expertise and accounting knowledge. This book helps bridge the divide, providing comprehensive IFRS coverage from a practical perspective. * Become familiar with the most common hedging instruments from an IFRS 9 perspective * Examine FX risk and hedging of dividends, earnings, and net assets of foreign subsidies * Learn new standards surrounding the hedge of commodities, equity, inflation, and foreign and domestic liabilities * Challenge the qualification for hedge accounting as the ultimate objective IFRS 9 is set to replace IAS 39, and many practitioners will need to adjust their accounting policies and hedging strategies to conform to the new standard. Accounting for Derivatives is the only book to cover IFRS 9 specifically for the derivatives practitioner, with expert guidance and practical advice.

About this title

From the Back Cover

The Derivative Practitioner's Expert Guide to IFRS 9 Application

"The main goal of IFRS is to safeguard investors by achieving uniformity and transparency in the accounting principles. One of the main challenging aspects of the IFRS rules is the accounting treatment of derivatives and its link with risk management."
--From the Preface

"In my view, the second edition of Accounting for Derivatives is an invaluable tool for hedge accounting practitioners. It tackles complex issues in a user friendly manner by providing step-by-step guidance to most common hedging strategies applied in each of the markets covered. The detailed application of IFRS concepts to real life case studies provide an additional benefit for the more theoretically minded of the accounting policy teams in any leading investment bank."
--Gabriel Pirlici, CFA, FCCA, Financial Accounting Manager, Group Accounting Policies & Standards, HSBC Holdings PLC

"Juan Ramirez's Accounting for Derivatives book gives an in-depth analysis of the various hedging strategies and their accounting implications through clearly written, easy-to-follow and practical case studies. It gives detailed explanations on the mechanics of hedge accounting. I have found Juan's book incredibly useful in my role as a Policy Accountant and have no doubt many finance professionals will also find it resourceful."
--Innocent Abai, Accounting Policy, BNP Paribas London

"Unlike other accounting books more focused on the rules, Accounting for Derivatives tackles both the accounting guidelines and the risk management practices. The book's practical approach greatly benefits from the author's extensive experience in marketing and structuring hedging solutions to corporates and financial institutions."
--Juan Solana Lanza, Financial Group, Banco Santander

About the Author

JUAN RAMIREZ works in one of the Big 4 accounting firms. He addresses challenging hedging situations and assessing the accounting treatment of complex transactions with a particular accounting, tax and regulatory capital angle. Formerly, he worked at Arthur Andersen, JP Morgan, Lehman Brothers, Barclays Capital, Banco Santander and BNP Paribas.

Edition details

• Publisher: Wiley
• Publication date: 2015
• ISBN 10: 1118817974
• ISBN 13: 9781118817971
• Binding: Hardcover
• Language: English
• Edition number: 2
• Number of pages: 800