Currency Exposures And Derivatives
Currency Exposures and Derivatives by A.V. Rajwade is a companion volume to Cash and Derivatives Markets in Foreign Exchange. It deals with risk management issues and policies for corporate treasurers, while clearly explaining the accounting aspects related to the use of derivatives. It is an excellent reference guide for both the initiated and the uninitiated.
Huge losses incurred in currency derivatives contracts by several companies in the recent past have exposed lapses on the part of corporate and bank treasury professionals in understanding the implications of hedging, and the difference between risk reduction and cost reduction. The issue of hedge effectiveness, especially with the mandatory use of Accounting Standard 30 on accounting and disclosure norms from 2011-12, becomes critical for company auditors as well. In this context, Currency Exposures and Derivatives, a distillate of the author’s rich experience in advising companies and teaching B school students and executives, comes as topical offering for corporate treasurers, chartered accountants, auditors, bankers, and students and faculty of management.
A companion volume to his book Cash and Derivatives Markets in Foreign Exchange, this book covers: Types of currency exposures and their effects on the bottom-line of businesses Exchange rate movements Risk management issues and policies for corporate treasuries Use and misuse of derivatives Provisions of AS 11, AS 16 and AS 30 related to the accounting issues and the rules for establishing hedge effectiveness.
Contents
The book is divided into the following chapters:
● Managing currency exposures: Learn how to handle currency exposures effectively, a key skill for corporate treasurers.
● Exchange rate movements – I: USD/INR exchange rate.
● Exchange rate movements – II: Convertible currencies Understand the exchange rate movements, including the USD/INR exchange rate and convertible currencies.
● Hedging, trading and risk management regulatory and governance issues: Explore hedging, trading, and risk management, along with important regulatory and governance considerations.
● Risk management policies: Learn how to develop strong risk management policies that protect your organization.
● Use and misuse of derivatives: Understand the correct and incorrect use of derivatives in managing currency risk.
● Accounting of foreign exchange transactions: AS 11, AS 16, and AS 30
● Glossary: Access a glossary that simplifies complex terminology related to currency exposures and derivatives.
