Posts Tagged ‘short-cut’

Conflicting Messages: Death of Short Cut vs Death of Quantitative Assessment

While many will commend the FASB for mandating measurement in all circumstances, it seems odd to go the other direction by eliminating the highly effective criteria under the current quantitative assessment requirement. The FASB states that “eliminating the shortcut method and the critical terms match method would result in a more consistent model for assessing hedge effectiveness.”

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Will FAS 133 (ASC 815-20) Revised be the New Frontier for Derivative Accounting?

The FASB is expected to issue an exposure draft to FAS 133 (ASC 815-20) as part of the Financial Instruments Project in the next few days. Assuming for once, that the FASB keeps to its timetable (don’t hold your breath, I’m not), the Exposure Draft is basically expected to be a re-issue of the Exposure Draft that was issued in July 2008, and one that generated close to 2,000 comment letters.

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The Proliferation of IFRS: One Global Set of Accounting Standards

Last year, the G20 leaders agreed that standard setters should focus on making substantial progress by the end of 2009 toward a global set of accounting standards. At the time, many applauded this intent as it was believed that widespread adoption of International Financial Reporting Standards (IFRS) is the best way to achieve comparable financial…

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Late Term Hedging of IR Risk Under FAS 133

Given the steepness of the yield curve , many companies are considering (and many banks are pitching) the strategy of swapping existing fixed rate debt into variable so companies can enjoy positive carry-over over the next few resets. While this strategy may make sense for certain companies from an economic perspective, the accounting ramifications under…

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