How do I run a prospective and retrospective chek-up following the IAS 39 rules ?
I need to check whether my forward contract was efficient.
There are some methodes to do it - The dollar offset method , regression ets...
I'd like to do it by regression
Can ANYONE explain to me how to do it ???
What is my model ?
What is the Explained ( Y ) variable ?
What are the Explaning ( X1,X2...Xn) variable/s ?
Answers (2)
Adam S.
Technical Accounting Manager at NSG Pilkington
Best Answers in: Economics (2), Accounting (1), Personnel Policies (1), Organizational Development (1)
I have found the book "Accounting For Derivatives: Advanced Hedging under IFRS" to be very helpful. The book is by Juan Ramirez. There is a section on the regression analysis. I'd rather not try to explain in here; kind of complicated and I wouldn't want to plagarize as if i knew how to do it without the book.
Yasushi "Yaz" F.
Consulting Tech Manager
Best Answers in: Accounting (1), Offshoring and Outsourcing (1), E-Commerce (1)
Hi Mark,
IAS 39 defines that firm commitment should be evaluated in fair value basis.
So, your actual issue is how to prove appropriate of your calculating fair value of forward contract in regression analysis.
There's a US Patent for determining fair value of financial assets. It might be your help.
