Monday, December 10, 2007

[International_Accounting_Standards] Re: Accounting for Financial instruments

--- In
International_Accounting_Standards@yahoogroups.com, "pravish08"
<pravish08@...> wrote:
>
> Hi
>
> Can anyone let me have some notes or books regarding the fair value
> measurement for derivatives;i.e, what is the methods for fair
> valuation of a forward, swap, commodity futures..credit default
swap
> etc.
>
> I am also looking for the accounting entries that should be done on
> initial recognition and on subsequent measurement.
>
> Thanks
>
For books: options futures and other derivatives by John Hull
THis is a "must get" book to do valuations proficiently
Initial recognition: depends on type of derivative. options have
premiums whereas futures have no initial value.
subsequent measurement: according to the move of the underlying the
derivative will price and the change will go into the P&L. All
derivatives are accounted for as FVPL.

regards,

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