marketing0294
Aug 11, 20151 min read
Invesco restates 2013-2015 financials due to failure to apply ASC 815
Invesco is the latest company to restate its financials due to failure to apply ASC 815: In the fourth quarter of 2013, the company began...
HedgeStar Marketing
Jan 1, 20159 min read
Evolution of Over-The-Counter Derivatives and Associated Accounting Concerns
When OTC derivatives are transacted on a bi-lateral basis between end-users and dealers, dealers quote bids and offers and end-users essenti
HedgeStar Marketing
Sep 2, 20148 min read
Hedging Bank Portfolios: Framing the Issue
To illustrate, consider a simplified example where a bank relies on monthly deposits as its primary funding source in connection with its ho
HedgeStar Marketing
Aug 1, 20147 min read
Comparing Apples and Oranges (and Pears)
Values for all of these three contract prices are dependent on the yield curve as of the date of the valuation, or more directly, on the con
HedgeStar Marketing
Sep 1, 20132 min read
Hedge Effectiveness Testing Revisited
This article addresses two problems often encountered by practitioners who endeavor to qualify for special hedge accounting treatment.
The f
HedgeStar Marketing
Dec 1, 20115 min read
This Year’s Model – New Lending Practices and Related Accounting Concerns
The first pitfall to avoid is using a standard pay-fixed/receive-floating interest rate swap in conjunction with this loan. This plain-vanil
HedgeStar Marketing
Mar 3, 20095 min read
Free Money
The issue gets a little more complicated when interest swaps are introduced into the equation. Interest rate swaps can be used to convert va
HedgeStar Marketing
Apr 3, 20079 min read
Interest Rate Swaps: Accounting vs. Economics
Although accounting rules undergo virtually ongoing review and adjustment, the genesis of the current framework is Statement of Financial Ac
HedgeStar Marketing
Mar 7, 200612 min read
Incorporating Prepayment Risk Considerations When Making Hedging Decisions
This article describes the basic framework for measuring interest rate risk at financial institutions and focuses attention on problems asso
HedgeStar Marketing
Apr 1, 200517 min read
What Analysts Need To Know About Accounting For Derivatives
Because (1) most derivative contracts had been off-balance-sheet items, lacking in transparency, and (2) the accounting treatment of derivat