ACCOUNTING FOR INVESTMENTS VOLUME 2- FIXED INCOME AND INTEREST RATE DERIVATIVES：A PRACTITIONER'S HANDBOOK

While there are a number of outstanding texts on valuation of interest rate derivatives, there are hardly any that provide a comprehensive treatment of the relevant accounting principles. Venkata Subramani’s well-structured book does a great job in filling this void. For each instrument, the author first provides a clear description of the product and its associated cashflows. He then proceeds to discuss the finer aspects of accounting using detailed examples which will
definitely enrich the reader’s knowledge of the subject. This book, written by a leading subject expert, is definitely unique in its treatment and content.

Prof. R. L. Shankar
Head, Center for Advanced Financial Studies, Institute of Financial Management and Resource (IFMR)
Program Director, MBA-Financial Engineering
Chennai, India

This second volume by R. Venkata Subramani is a valuable contribution to the accounting and finance literature providing comprehensive coverage of accounting for fixed income securities and interest rate derivatives. Subramani provides a systematic and step-by-step description of, and accounting for, all the possible events and transactions in the life of the security or derivative concerned. This excellent feature makes it effective for the reader to attain an in-depth understanding of the topics covered. I am sure that this book will be greatly appreciated by users of financial statements, academics and business students.

Srinivasan Rangan
Associate Professor of Finance and Control
Indian Institute of Management
Bangalore, India

The recent global financial crisis has resulted in a thorough review and overhaul of accounting standards in order to improve financial reporting and enhance investor confidence. Although accounting for fixed income and derivative financial instruments is complex this book provides the reader with a clear and concise explanation of this intricate subject. The informative product descriptions and detailed explanations of the accounting events at each stage of the trade life cycle will be of great benefit to those who want to gain a better understanding of this intricate topic.

Loretta Wickenden
Chief Executive Officer
Latilla LLC
USA

With this second volume Venkata Subramani has structured a very comprehensive book focused on accounting for fixed income securities and interest rate derivatives. This author puts in perspective a very detailed and exhaustive presentation of the nuances of the different flavors of financial instruments and a detailed description of the related accounting events and associated entries. It becomes very effective because every example details how the life cycle of financial instruments interacts with the accounting output making this book a helpful bridge between the financial products and their accounting translation.

Jean-Daniel Morfin
Product Manager
Calypso Technology
France

A graduate of the University of Madras, Venkata Subramani is a Chartered Accountant who began his career with a professional accounting firm in Chennai.

Venkat is currently Product Manager at Calypso Technology, a global financial software and services company delivering integrated cross-asset solutions for trading, risk, processing and control, serving a broad spectrum of customers including financial institutions, prime brokers, asset managers, hedge funds, insurers, corporates and exchanges. Venkat’s expertise includes accounting and reporting for different types of financial instruments as per US GAAP and IFRS.

Previously he was managing a team of core finance and accounts professionals in a US-based hedge fund administration firm serving several global clients. Venkata Subramani lives in Chennai with his wife and daughter.

Foreword

Introduction

Preface

Acknowledgments

Chapter 1 Fixed Income Securities—Theory

Chapter 2 Fixed Income Securities—Fair Value through Profit or Loss

Chapter 3 Fixed Income Securities—Available-for-Sale

Chapter 4 Fixed Income Securities—Held-to-Maturity

Chapter 5 Presentation, Disclosures & Reclassification

Chapter 6 Interest Rate Derivatives—Theory

Chapter 7 Interest Rate Swaps—Receive Fixed Pay Floating

Chapter 8 Interest Rate Swaps—Pay Fixed Receive Floating

Chapter 9 Interest Rate Caps

Chapter 10 Interest Rate Floors

Chapter 11 Interest Rate Collar

Chapter 12 Cross-Currency Swaps (XCCY Swaps)

Bibliography

Index