Dear All
Our Company is into Oil trade and has entered into options in commodity.
Can some one give me the list of accounting entries under USGAAP in the books of both Options writer and options buyer.
Request you to give the journal entries under both these circumstances
1. If the company follows hedge accounting
2. If the company doest follow hedge accounting
Also let me know the relavant accounting standard.
Thanks for your help.
Regards
Ganesh

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Hi everyone
How do we recognise a put/call option in the balance using the fair value method and not hedge accounting.
Thanks and regards
Catherine

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Dear Group members
please advice me on the following
1) do we need to fair value the retention money, which is payable in after 18 months
2) do we need to fair value the secured loan, where the payment of the prinicpal amount will start from April 09 till april 2014, and the interest is paid regulary @ 14%
3) do we need to fair value the leese deposit given and taken both. the same is for more than one year
4) do we need to fair value the advances paid for the purchase of …

Dear Experts,
An Org has signed a IRS agrrement with a bank against floating int rate of term loan from another bank.
Before the maturity of agreement period term loan is repaid and another loan obtained from another bank.
Based on int cap and fluctuation in int rate loss/proft is recognised in Income Statement and Asset/ Liabilty is accounted.
Due to repayment of term loan against which IRS agreement was made. Can we continue to account for IRS against another loan obtained. Or IRS agreement is to be cancelled.

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§        Delta neutral hedging strategy
A portfolio is worth 90 million. To protect against downside movement manager require 6 months put European option at a strike price of 87million.
Risk free rate of return = 9%
Dividend yield = 3% 
Volatility = 3%
S&P 500 index stands at 900.
After all the calculation made it was find that delta of the required option is -.3215;
This shows that 32.15% of the portfolio should be sold to match the delta of the required option.
If after single day value of the portfolio is reduced to 88 …

Does it exist a definition for financial instruments?

I am confused with the different perceptions of financial instruments.
Thanks.
Sincerely yours
Emilio

 
Dear Emilio,
 
a Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
for this, definition of financial asset and liability and equity have to be checked
jatin

Emilio–
IAS 32 Financial Instruments defines this in paragraph 11
Craig

There are various treatment of financial instruments as to their valuation, measurement and prepsentation. You may refer to IFRS 7, IAS 32 and IAS 39.
 

IAS 21 discusses …

Hi, Members.
 
In regard to the above subject please help me to answer the following question.
 
One of the four categories of financial assets as classified in IAS 39, Financial Instruments: Recognition and Measurement is subject to “tainting rule”. Identify the category and explain what is tainting rule.
 
Thanks and Regards.
 

Kibona

Hi,

Tainting Rule means:
Where an entity sells or transfers more than an ‘insignificant amount’ of its held-to-maturity investments it must reclassify all of them as available-for-sale. It is then prohibited from classifying any assets as held-to-maturity for the next two full annual financial periods, …

Dear all,
 
An answer to the following question would be much appreciated:
 
If no hedge accounting is applied, should all changes in fair value of derivatives be recognized as financial income or expense (so below operating result) or is recording of the change in fair value within operating result allowed?
 
 
Further, does anyone have one clear memo, including example journal entries of the various possble accounting issues (cf hedge, fv hedge net investment in foreign operation) applying hedge accounting and not-applying hedge accounting and if possible, all other accounting (including journal entries) not applying …

Hi
 
Can anyone respond to my email below?
 
Thanks and regards
 
Catherine
Hi
 
I would need your assistance on how to account for futures/options in the financial statements.
 
Thanking you in advance for your kind assistance.
 
Regards
Catherine
Catherine,

 
Have you looked at IAS39 already, because depending on that you can or cannot apply hedge accounting. Basically you have 2 methods either Cashflow hedging or fair value hedging. If you want to do hedge accounting you will be required to do a lot of prospective and retrospective testing to prove the effectiveness of your hedges. If you don’t do hedge …

Hi

 
Please let me know the salient points in IFRS 7 which has been recently been made a mandatory disclosure in the audited financial statements.
Regards
Raghavan
 

 
Under IFRS 7 there are 12 requirements:
 

Requirement 1
Reconciliation of carrying amounts by classes of financial instruments to IAS 39 measurement categories (at least these categories are HTM, AFS, FVTPL, Loans and Receivables). An entity shall make the decision which classes of financial instruments are appropriate to the nature of the information disclosed taking into account the characteristics of those financial instruments.

Requirement 2
Description of processes for managing the …

Sirs and madam,
would like too seek help on how to disclose a share application monies?

thanks…

jinn

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Dear Sir/Madam,
I would like to have some detailed information about IAS 39.
Thanks and Regards
Karim

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Dears

I have a question regarding bank a/c in foreging currency, as we have one bank account in euro, where as we are maintaing our books in local currency (other than euro).
Every month we there is difference in exchage rate, and we closing our books on monthly basis. in my opinion we have to record the difference (if there) every month either expense or income, where as my manager want to show this difference (if there) one time only at the year end and he want to keep this monthly difference …

Dear friends,

it happens that I am an employee of a manufacturing company who is making hedging for foreing currencies transactions.
Do you happen to have documentation on the bookings that I have to make in the balance sheet/profit&loss account?
With a specific example: spot exchange rate, forward exchange rate, what I should book as P&L gain/loss and in B/S as payables/receivables?
Thank you.
Adrian Mitranus

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Can any one let us know if there are any model notes for financial statements for disclosures as per IFRS 7 “Financial Instruments Disclosures” in the financial statements as per IAS 34 “Interim Financial Reporting”?
 
Do they primarily have to be disclosed in the interim financial statements as they are disclosed in the annual financial statements as per IAS1 ? Or are there some abbreviated versions of such disclosures for interim financial statements?
 
Your assistance on this will be greatly appreciated.
 

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Hello,
 
Can anybody help me understand cash hedging?
 
Thanks.
Brenda 

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Dear All,
Can Loan be classified as Available for sale investments (as it is open category). Please answer while considering IAS 39.
Thanks
Muhammad

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Hi everyone,
 
I have a question on IAS 39 – Financial Instruments. How can an auditor tell whether a financial asset is available for sale or held for trading?
 
Thanks,
Prithy
 

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Dear All
 
Can someone tell me that how to measure the fair value of unquoted equity investment as per IAS-39 or can we take break up value as fair value. please do let me know at your earliest.
 
 
Thanks
 
Regards
Muhammad

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Good morning to all
Please let me know the salient points in related to Hedge (SWAPs, Collars, etc) and other treasury instruments present in differnt IFRS. Futhermore, kindly refer me certain website in this regard as well.
I shall be looking forward and thanks in advance.
Regards
Salman

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