Accounting for Derivatives: A Primer
It would be easy for us to dismiss [derivatives] as [investment products] only sophisticated investors use minimizing any impact to our economy.…If we think back to the collapse of Enron, or even farther back to Long-Term Capital Management, we understand how the abuse of derivatives can have a negative impact not only on the parties to the contract, but also on the market and the economy.
—Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Select Revenue Measures Subcommittee, at a March 5 (2008) hearing on tax treatment of derivatives
Originally issued as Financial Accounting Statement (FAS) No. 133, Accounting ...