Derivatives Accounting and Risk Management

Comprising views from the leading industry experts this new volume contains current and highly topical assessments of the latest auditing and accounting standards for the financial derivatives markets - presented through practically focused, results-driven content guaranteed to aid you in everyday practice.

• Provides auditors and accountants with a current and comprehensive guide to auditing standards for derivatives
• Covers definitions of derivatives, current problems in auditing them, current and future audit plans, audit tests, as well as what constitutes a true and fair view of a company’s accounts
• Updates your auditing methods and skills to incorporate IAS 39, including an assessment of its pros and cons, and additionally covers of the practical implementation issues of SAS 92, FASB 133 and others
• Highlights the risks present in current derivatives auditing techniques and illustrates how new accounting standards can help reduce them
• In-depth coverage of: derivative instruments, including their applications, key risks and control; auditing employee compliance risks; key concepts for the internal auditor when approaching credit risk; and derivatives disaster case studies

The advent of international accounting standards such as IAS 39 and the growing importance and variety of derivatives used in risk management has focused debate on the pros and cons of the current and proposed hedge accounting standards and new audit tests. To give you a broad understanding of the field, this title combines the unique knowledge of experts from both the private and public sectors, as well as the latest insights from leading academics to answer such questions as:

• What constitutes a true and fair view of a company’s accounts?
• How will the new standards affect the risk management practices of banks and corporates?
• What are the consequences for overall market volatility?
• What tests can auditors apply in order for them to confidently sign off on a company’s accounts?
• What are the key risks associated with derivatives?