US GAAP

What is Credit Value Adjustment (CVA) in Accounting?

by R. Venkata Subramani

Counterparty credit risk (CVA) is the risk that the counterparty to a financial contract will default prior to the expiration of the contract and will not make all the payments required by the contract. Obviously exchange-traded derivatives are not subject to counterparty risk as the respective exchange guarantees the settlement of cash flows as per the derivative contract. CVA is a measure that adjusts the risk-free value of an instrument to incorporate counterparty credit risk. CVA can be positive or negative depending on which of the two counterparties is most likely to default and the relative balances due or receivable to each other.

There were some concerns expressed in certain quarters as to whether the Debit Value Adjustment (DVA) should be considered in determining the fair value. Now based on the recent exposure draft announced jointly by IASB and FASB on 28th January 2011 on Offsetting Financial Assets and Financial Liabilities it is amply clear that the DVA also should be recognized along with CVA.

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Wiley GAAP for Governments 2011: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments

by R. Venkata Subramani


 

Product Description

The most practical, authoritative guide to governmental GAAPWiley GAAP for Governments 2011 is a comprehensive guide to the accounting and financial reporting principles used by state and local governments as well as other governmental entities. Designed with the needs of the user in mind, a “New Developments” chapter offers the important developments in governmental GAAP during the past year. 

  • Full coverage of authoritative accounting standards
  • Extremely useful and user-friendly examples, illustrations, and helpful practice hints
  • A comprehensive guide to the accounting and financial reporting principles used by state and local governments as well as other governmental entities
  • Provides a look ahead to the status of current and future Governmental Accounting Standards Board standards and projects
  • Offers information on the very latest in standard-setting activities
  • Also by Warren Ruppel: Governmental Accounting Made Easy

Wiley GAAP for Governments 2011 is a thorough, reliable reference financial professionals will consistently keep on their desks rather than on their bookshelves.  

From the Back Cover

The most practical, authoritativeguide to governmental GAAPWiley GAAP for Governments 2011 is a comprehensive guide to the accounting and financial reporting principles used by state and local governments as well as other governmental entities. Financial statement preparers, attestors, and readers will find its full coverage of authoritative accounting standards coupled with many examples, illustrations, and helpful practice hints extremely useful and user-friendly. Designed with the needs of the user in mind, a “New Developments” chapter keeps you informed of all the important developments in governmental GAAP during the past year. A look ahead at the status of current and future Governmental Accounting Standards Board standards and projects provides information on the very latest in standard-setting activities and covers: 

  • GASB Statement No. 51 Accounting and Financial Reporting for Intangible Assets
  • GASB Statement No. 52 Land and Other Real Estate Held as Investments by Endowments
  • GASB Statement No. 53 Accounting and Financial Reporting for Derivatives
  • GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Devinitions
  • GASB Statement No. 55 The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments
  • GASB Statement No. 56 Codification of Accounting and Financial Reporting Guidance Contained in AICPA Statements on Auditing Standards
  • GASB Statement No. 57 OPEB Measurements by Agent Employers and Agent Multi-Employer Plans
  • GASB Statement No. 58 Accounting and Financial Reporting for Chapter 9 Bankruptcies
  • Exposure Draft Accounting and Financial Reporting for Service Concession Arrangements
  • Exposure Draft Financial Instruments Omnibus
  • Exposure Draft Pension Accounting and Financial Reporting
  • Latest on GASB Technical Plan  

Wiley GAAP for Governments 2011 strives to be a thorough, reliable reference that you’ll use constantly. It’s designed to be kept on your desk rather than on your bookshelf.

 

Product Details

  • Paperback: 600 pages
  • Publisher: Wiley; Revised edition edition (March 1, 2011)
  • Language: English
  • ISBN-10: 0470554460
  • ISBN-13: 978-0470554463

 

 

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Cash Flow Hedge for a Foreign Currency debt

by R. Venkata Subramani

As per US GAAP, Cash flow hedge accounting for a foreign currency debt is permissible using a FX forward contract to cover the Foreign Exchange risk . Section 815-20-25-28 is quoted below: “If the hedged item is denominated in a foreign currency, an entity may designate any of the following types of hedges of foreign [...]

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The Ultimate Accountants’ Reference Including GAAP, IRS & SEC Regulations, Leases, and More

by R. Venkata Subramani

Product Description A wide-ranging source of information for the practicing accountant, The Ultimate Accountants’ Reference, Third Edition covers accounting regulations for all aspects of financial statements, accounting management reports, and management of the accounting department, including best practices, control systems, and the fast close. It also addresses financing options, pension plans, and taxation options. The [...]

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No decision taken about the timing of a possible conversion to IFRS

by R. Venkata Subramani

While the SEC approved a statement supporting the adoption of global accounting standards for U.S. companies, the Chairman Mary Schapiro cautioned that, “Incorporating International Financial Reporting Standards (IFRS) into our financial reporting system would involve a significant undertaking. We must carefully consider and deliberate whether such a change is in the best interest of U.S. [...]

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Accounting for Investments – Equities, Futures & Options – Part-1 Video

by R. Venkata Subramani

• Accounting for Investments – Equities, Futures & Options -  is the first volume in this series published by John Wiley & Sons. This video gives an overview of the contents of this book. This is the first part of a series of videos that would cover the contents all the chapters in great detail. [...]

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US GAAP – codified topics

by R. Venkata Subramani

1 105 – Generally Accepted Accounting Principles 2 205 – Presentation of Financial Statements 3 210 – Balance Sheet 4 215 – Statement of Shareholder Equity 5 220 – Comprehensive Income 6 225 – Income Statement 7 230 – Statement of Cash Flows 8 235 – Notes to Financial Statements 9 250 – Accounting Changes [...]

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Online Courses on Accounting for Investments, Financial Instruments, Accounting Standards

by R. Venkata Subramani

We have now started the online resources for Accounting Studies. Visit: Online Courses on Accounting Studies What topics are covered here? Online courses are available on several topics of professional interest in the Accounting and Finance area Accounting Standards as per US GAAP, IFRS, etc. Financial Instruments like equity derivatives, Interest Rate Derivatives, Credit Derivatives, [...]

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Amendments to reporting of Credit Default Swaps (CDS) – US GAAP FAS 161

by R. Venkata Subramani

FASB has come up with a list of new disclosures to be effective in financial statements for fiscal years that end after Nov. 15, 2008, in order to help investors get a grip on the financial implications for companies that have sold credit default swaps, Credit Default swaps are derivative contracts in which one counter [...]

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