nnのCPA試験の旅 in Hawaii CPA試験の旅 in Hawaii

Hello again!

by nn_77
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タグ:Hedge accounting ( 1 ) タグの人気記事

Derivative Instruments (衍生?)

When I was in a certain section of a banking corporation, I had to deal with the derivative instruments, especially those of SWAP & OPTION.

I had to explain and sell those instruments to the clients when I was in a sales department. Insufficient explanation would be severely punished, so I was very careful. I was even scared of dealing with it; if you fail to do so, you could be sued by your client.

When I was in an internal department, I had to calculate the settlement amounts of the clients every period (basically, it comes every three months or six months). Some contracts do the settlement in gross amounts, and others do in the net amounts. The computer system was immature yet, because some derivative instruments are highly customized for the clients. So the cash flows for each derivative contract were neatly controlled by an Excel spread sheet!!

By the way, I made a little summary of the derivative part of uscpa exam (FARE). For more details, click the “Memo” below.

Disclaimer: The memo below is just for nn’s reminder. Of course you know better than to believe it at face value.

ps) Derivative的汉语翻译好像"衍生," 还是我不知道怎么念!
( It seems that the Chinese translation for "Derivative" is "衍生," although I have no idea about how to pronounce it!!)

by nn_77 | 2005-11-07 19:46 | >FARE | Comments(2)