Derivative instruments

Contracts such as options and futures whose price is derived from the price of an underlying financial asset.

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The company stated that the 2011 GAAP net loss included unrealised losses on derivative instruments of USD34.

Resolute Energy Corporation drops to GAAP net loss of USD16.8m for Q1 2011

However, the Islamic finance industry needs to develop its own innovation phase and not imitate conventional derivative instruments in order for IFIs to maintain their special status and Sharia-compliant approach, the report says.

Key tools may cut IFIs' risks

Over the past two decades, the use of derivative instruments by state and local governments has increased significantly.

GASB 53: new standards for derivative and hedging activities in the public sector

It is intended to improve how state and local governments report information about derivative instruments in their financial statements.

GASB issues statement on derivative instruments

The use and complexity of derivative instruments and hedging activities have increased significantly over the past several years.

Statement of financial accounting standards no. 161 - disclosures about derivative instruments and hedging activities (an amendment of FASB statement no. 133)

In this successor to Swap Financing (1989) and Swaps and Financial Derivatives (1994), an expert in the area of risk management, financial derivatives (instruments used to trade or manage assets), and capital markets touts the development of derivative instruments as "perhaps the most significant aspect of capital markets in the last 20 years.

Risk management, 3d ed. (CD-ROM included)

Issued in February 2006, FAS 155 amends FAS 133, Accounting for Derivative Instruments and Hedging Activities and FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.

Ask FERF about ...... fair value

Auditing Derivative Instruments, Hedging Activities, and Investments in Securities; and Auditing Interests in Trusts Held by a Third-Party Trustee and Reported at Fair Value clarify that receiving a confirmation of fair value from a third party (including a trustee) is not enough to constitute adequate audit evidence with respect to the valuation assertion.

AICPA issues fair value interpretations

not traded on an exchange] derivative instruments are important financial management tools that, in many respects, reflect the unique strength and innovation of American capital markets," said Arthur Levitt, then chairman of the Security and Exchange Commission, in 1998 testimony to Congress.

In Defense of derivatives: between Enron, WorldCom, and Global Crossing, the controversial financial instruments have gotten a bad rap. Here's the truth

While state and local governments use a vast array of increasingly complex derivative instruments to manage debt and investments, they also may be assuming significant risks.

GASB releases Technical Bulletin on derivatives disclosure. (News & Numbers)

Although the convenience and low cost of using derivative instruments to meet portfolio objectives may have facilitated some investors reaching for more unconventional and possibly riskier strategies, it would be a serious mistake to respond to these developments by singling out derivative instruments for special regulatory treatment.

Statement by Alan Greenspan, Chairman, Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing and Urban Affairs, U.S. Senate, January 5, 1995

In this new environment, senior management and boards of directors have an obligation to thoroughly understand and effectively manage the risks derivative instruments pose.