Hedge accounting and risk management

http://www.accountancyage.com/accountancyage/analysis/2270257/hedge-accounting-hedging-bets

Read and note useful vocabulary that is used to describe risk management by banks

Currency Trading

The BBC has some very interesting articles related to currency trading and to doing business in real time using software.
See how many useful apps  you can think of  on your mobile phone for doing business in real time and we will compare ideas in the next class when you will be writing a report giving advice on exchange rates.
Please review the format and useful language for report writing for the ICFE exam task.

http://www.bbc.co.uk/news/business-11148626

http://www.bbc.co.uk/news/business-11444051

Wall Street never sleeps!

For more  on hedge funds and movies
 Follow this link:
http://www.efinancialnews.com/story/2010-09-30/gross-warns-hedge-fund-and-pension-scheme-reforms-will-shrivel?mod=sectionheadlines-home-AM

Check useful phrases to describe the activities of hedge funds to the vocab handout from the last class.

background research for unit 4 page 49

Look at the website for EFRAG and identify 4 of their objectives. We will be doing an exercise on page 49 based on this topic.
http://www.efrag.org/content/default.asp?id=4103

You could also look at their 2009 annual review.

The heated debate continues on international standards

Check the meaning of the phrases that are underlined

ICAEW: US standards proposal complicates convergence

Institute takes a pop at the US standards setter's proposal for fair value accounting

Written by Kevin Reed

Accountancy Age, 28 Sep 2010

A proposal by the US accounting standards setter to use fair value for all assets will increases complexity and complicate the strategy to converge with international rules, claims the ICAEW.

Dr Nigel Sleigh-Johnson, head of the ICAEW’s Financial Reporting Faculty, said that FASB's strict model for measuring financial instruments will make statements harder to read and information more difficult to understand for investors.

"Simplification of the standards for financial instruments accounting is a key priority, and is an objective endorsed by the G20 governments. The FASB’s proposals are surely pulling in the wrong direction," said Sleigh-Johnson.

The IASB's model contains 'mixed measurement': which results in financial instruments being stated at either amortised cost or fair value in the primary financial statements (with fair values for all financial instruments disclosed in the notes).

The ICAEW has been the most vocal accounting institute on the convergence debate. In February the ICAEW said the US Securities and Exchange Commission had failed to provide certainty on US plans to adopt international standards.

Further reading:

It's time for the US to show some leadership on convergence: ICAEW

Read more: http://www.accountancyage.com/accountancyage/news/2270588/icaew-standards-proposal#ixzz10wROIi5q
Accountancy Age - Finance, business and accountancy news, features and resources.

News from Accountancy Age

Try reading this article aloud to practise saying numbers.
Check that you are familiar with all the acronyms!

Worldwide membership of ACCA has overtaken the ICAEW for the first time.

The latest survey of accountancy by the Professional Oversight Board reveals that ACCA had 137,233 members worldwide in 2009, up from 131,398 a year earlier. The ICAEW saw member numbers increase to 134,698 from 132,411.

Compound annual growth across the six main institutes was 3.4% between 2004 and 2009.

The ICAEW's growth during that period was 1.2%, ACCA grew 5.6% and CIMA 4.2%. ICAS' compound growth was 2.8% across the period, while CIPFA grew 0.4%.

UK membership for the ICAEW grew 1.5% to 2009 (114,468) from a year earlier, while ACCA climbed 1.9% over the year to 68,907.

Read more: http://www.accountancyage.com/accountancyage/news/2265969/acca-membership-overtakes-icaew#ixzz10qB1RVns

Reading Test Part 2 and introduction to Part 3

Dear Group
 This week I would like you to look at the tasks that you need to be familiar with in order to score highly on this part of the test. Please read page 6 carefully in the coursebook as we will be doing a workshop on Part 2 in class this week and will do an introduction to Part 3 to practise word-building  for the word formation task.

Finally, I hope that you have all registered for the ICFE exam.