Accounting for Investments, Volume 2: Fixed Income Securities and Interest Rate Derivatives—A Practitioner's Guide

Preface

Accounting for Investments—Fixed Income Securities and Interest Rate Derivatives is the second volume of the Accounting for Investments series. This volume covers the financial instruments of fixed income securities and interest rate derivatives viz. interest rate swaps, caps, floors, collars, reverse collars and cross-currency swaps. As in the first volume, this book provides an exhaustive treatment of accounting, presentation and disclosure aspects of any entity dealing with such financial instruments.

Since the break out of a severe financial crisis, which started in 2008 and virtually crippled the world economy, the regulatory authorities including the accounting standard setters have been on their toes and, thanks to their tireless efforts, a substantial addition to the knowledge of accounting has been made along with a thorough overhaul of the accounting standards relating to financial instruments. The good news is that the seat of accounting standard setting authorities on both sides of the Atlantic are now speaking in a singular voice despite some lag in the implementation timeline. This means that very soon there will be a “convergence” in spirit of the world’s top two standards, although it may take a little longer before we see a single converged standard in letter.

Never in the past have we seen such rapid succession of accounting standards issued on financial instruments continuously being revised and fine-tuned, based on input received from the accounting ...