Wiley GAAP for Governments 2020

13DERIVATIVE INSTRUMENTS

• Introduction
  • Scope
  • Recognition and Measurement of Derivative Instruments
  • Hedging Derivative Instruments
  • Evaluating the Effectiveness of a Hedge
  • Methods for Determining the Effectiveness of a Hedge
  • The Hedgeable Item Is an Existing or Expected Financial Instrument
  • Consistent Critical Terms Method
  • Quantitative Methods
  • Synthetic Instrument Method
  • Dollar-Offset Method
  • Regression Analysis Method
  • Other Quantitative Methods
  • The Hedgeable Item Is an Existing or Expected Commodity Transaction
  • Consistent Critical Terms Method
  • Quantitative Methods
  • Synthetic Instrument Method
  • Dollar-Offset Method
  • Regression Analysis Method
  • Other Quantitative Methods
  • Hybrid Instruments
  • Synthetic Guaranteed Investment Contracts
  • Notes to the Financial Statements
  • Summary Information
  • Hedging Derivative Instruments
  • Investment Derivative Instruments
  • Contingent Features
  • Hybrid Instruments
  • Synthetic Guaranteed Investment Contracts
• Summary

INTRODUCTION

The GASB issued Statement 53 (GASBS 53), Accounting and Financial Reporting for Derivative Instruments, to provide guidance on recognition, measurement, and disclosures, regarding derivative instruments. Common types of derivative instruments used by governments include interest rate and commodity swaps, interest rate locks, options, swaptions, forward contracts, and futures contracts. One significant matter to note is that the recognition and measurement provisions of GASBS 53 should not be applied to financial statements using the ...