Accounting for Investments: Equities, Futures and Options / Edition 1

Hardcover (Print)
Used and New from Other Sellers
Used and New from Other Sellers
from $98.51
Usually ships in 1-2 business days
(Save 53%)
Other sellers (Hardcover)
  • All (8) from $98.51   
  • New (7) from $98.51   
  • Used (1) from $140.81   

Overview

The 2008 financial crisis highlighted the need for responsible corporate governance within financial institutions. The key to ensuring that adequate standards are maintained lies with effective accounting and auditing standards. Accounting for Investments: Equities, Futures and Options offers a comprehensive overview of these key financial instruments and their treatment in the accounting sector, with special reference to the regulatory requirements. The book uses the US GAAP requirements as the standard model and the IFRS variants of the same are also given.

Accounting for Investments starts from the basics of each financial product and:

  • defines the product
  • analyses the structure of the product
  • evaluates its advantages and disadvantages
  • describes the different events in the trade cycle
  • elaborates on the accounting entries related to these events.

The author also explains how the entries are reflected in the general ledger accounts, thus providing a macro level picture for the reader to understand the impact of such accounting.

Lucidly written and informative, Accounting for Investments is a comprehensive guide for any professional dealing with these complex products. It also provides an accessible text for technology experts who develop software and support systems for the finance industry.

Read More Show Less

Product Details

  • ISBN-13: 9780470824313
  • Publisher: Wiley
  • Publication date: 6/2/2009
  • Edition description: Volume 1
  • Edition number: 1
  • Pages: 650
  • Product dimensions: 6.90 (w) x 10.00 (h) x 1.80 (d)

Meet the Author

A graduate of the University of Madras, R. Venkata Subramani is a Chartered Accountant who began his career with a professional accounting firm in Chennai before becoming the Managing Director of Quintegra Solutions Limited from 1994–2004.
Since 2005, he is the Chief Operations Officer of Variman Capital Markets Services Private Limited in Chennai, India. Venkata Subramani manages a team of core finance and accounts professionals and is responsible for the daily operations including the preparation of net asset value (NAV), portfolio valuation and accounting, partnership allocation and accounting, for various global clients.
Venkata Subramani taught at the Institute of Chartered Accountants of India and the University of Madras from 1984–1990. He lives in Chennai with his wife and daughter.

Read More Show Less

Table of Contents

Foreword.

Preface.

Acknowledgments.

Chapter 1 Financial Instruments.

Learning Objectives.

Accounting Standards for Financial Instruments.

Definition of Financial Instruments.

Categories of Financial Instruments.

Fair Value Measurement Concepts.

Recognition and Derecognition of Financial Instruments.

Types of Investments.

Difference between Investment and Speculation.

Two Major Standards: U.S. GAAP and IFRS.

Summary.

Exercises.

Chapter 2 Accounting for Equity Investments: Trading.

Learning Objectives.

Accounting Standards for Equity Investments.

Definition of Equity Securities.

Passive Investments: Less than 20 Percent.

Significant Influence: 20–50 Percent.

Controlling Interest—More than 50 Percent.

Exchange-Traded Securities versus Over-the-counter Securities.

The Trade Life Cycle for Equity Trading Securities.

FX Revaluation and FX Translation Process.

Trade Date Accounting versus Settlement Date Accounting.

Distinction between Capital Gains and Currency Gains.

Summary.

Exercises.

Chapter 3 Accounting for Equity Investments: Available-for-Sale.

Learning Objectives.

Accounting Standards for Equity Investments: Available-for-sale.

Basic Understanding of AFS.

The Trade Life Cycle for Available-for-sale Equity.

FX Translation on AFS Securities.

Impairment of AFS Securities.

Summary.

Exercises.

Chapter 4 Transfer of Categories.

Learning Objectives.

Transfer between Categories.

Presentation in Income Statement.

Deferred Tax Effects on Unrealized Gain/Loss.

Summary.

Exercises.

Chapter 5 Equity Derivatives: Theory.

Learning Objectives.

Accounting Standards for Equity Derivatives.

Derivatives in a Financial Security.

Definition of Derivatives per Accounting Standards.

Forward Contract.

Futures Contract.

Futures versus Forwards.

Components of a Futures Contract.

Open Interest in Derivatives Contracts.

Method of Computing Open Interest.

What Does Change in Open Interest Indicate?.

Pricing of a Futures Contract.

Stock Futures and Index Futures.

Summary.

Exercises.

Chapter 6 Accounting for Equity Index Futures.

Learning Objectives.

The Trade Life Cycle for Equity Index Futures.

Illustrations with FX Translation.

Summary.

Exercises.

Chapter 7 Accounting for Equity Stock Futures.

Learning Objectives.

Trade Life Cycle for Equity Stock Futures.

Illustrations.

Summary.

Exercises.

Chapter 8 Accounting for Equity Call Options.

Learning Objectives.

Accounting Standards—Derivative Instruments and Hedging Activities.

Trade Life Cycle for ETOs—Long Call Non-hedging.

Illustrations.

Trade Life Cycle for Exchange-Traded Options—On Writing a Call Option.

Illustrations.

Summary.

Exercises.

Chapter 9 Accounting for Equity Put Options.

Learning Objectives.

Trade Life Cycle for Exchange-Traded Options—Long Put, Non-hedging.

Illustrations.

Trade Life Cycle for Exchange-Traded Options—On Writing a Put Option.

Illustrations.

Summary.

Exercises.

Chapter 10 Equity Options: Hedge Accounting.

Learning Objectives.

Accounting Standards—Derivative Instruments and Hedging.

The Trade Life Cycle for ETOs—Long Put as Hedging.

Illustrations.

Summary.

Exercises.

Chapter 11 Accounting for Contract for Difference.

Learning Objectives.

Definition of CFD.

Product Features of CFDs.

The Trade Life Cycle for CFDs.

Illustrations.

Summary.

Exercises.

Chapter 12 Accounting for Short Equity Investments.

Learning Objectives.

Definition of Short Equity Securities.

Types of Short Sales.

Process of Short-selling.

Risks of Short-selling.

Box Position and Short-selling.

Rationale of Short-selling.

Regulatory Requirements of Short Sales.

Securities Lending.

The Trade Life Cycle for Equity Short Sales.

Illustrations.

Summary.

Exercises.

Chapter 13 Accounting for ADR/GDR Investments.

Learning Objectives.

Definition of a Depositary Receipt.

Issuance and Cancellation of DRs.

DR Ratio and Pricing.

Benefits of DRs to Issuers.

Benefits to Investors.

What are ADR and GDR?.

Different Types of ADR Issues.

Risks Associated with Investment in DRs.

Restricted Programs.

The Trade Life Cycle for Equity ADR Securities.

Illustrations.

Summary.

Exercises.

Chapter 14 Presentation and Disclosures.

Learning Objectives.

Accounting Standards for Presentation and Disclosure.

Presentation in Income Statement.

Differences between U.S. GAAP and IFRS.

Disclosure Requirements under U.S. GAAP.

Disclosure Requirements under IFRS.

Requirements by IFRS 7.

Statement of Profit and Loss and Equity.

Other Disclosures.

Market Risk.

Summary.

Exercises.

Appendix A Basics of Accounting Theory.

Appendix B Accounting Standards for Financial Instruments.

Appendix C Financial Statements of Sample Fund.

Appendix D Glossary of Technical Terms.

Bibliography.

Index.

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)