SFAS 133 Tutorial and Glossary Files
Accounting for Derivative Instruments and Hedging Activities
Bob Jensen at Trinity University
In June 1998, the Financial Accounting Standards Board issued SFAS 133. I am developing tutorial files for my students and am willing to share these with you if your browser is configured for downloading such files. If you have downloading problems you must contact your own technicians to resolve these troubles. The files have downloaded properly in our downloading tests in various computer labs at Trinity University.
Overview File With Audio
I wrote a new introduction to
FAS 133 and IAS 39 on Accounting for Derivative Financial Instruments and
Hedging Activities. It includes audio clips from experts.
My request is that you contact me about corrections and suggestions for improvements. I would especially like it if you could provide me with some added questions and answers. Carl Hubbard and I will soon have two papers appearing in Derivatives Report. They deal with Examples 2 and 5 of SFAS 133.
At Trinity University, we are having better luck downloading the xls Excel files in Internet Explorer. If you have trouble downloading the xls files, click here for some hints that may help you get these files into your computer.
- Click here to view my SFAS 133 and IAS 39 Glossary and Transcriptions of Experts
I have attempted to link most terms to paragraphs in SFAS 133
- Missing Parts of SFAS 133
These are some of the ones that I think are worth mentioning at the moment.
ACCT 5341 Course (Without Answers)
ACCT 5341 Cases & Tutorials Links (With Answers)
- The links to several cases (with answers) on hedging strategies and accounting under new rules for accounting for derivative financial instruments and hedging activities are given in http://www.cs.trinity.edu/~rjensen/caseans/000index.htm
- The links to weekly assignments (with answers are as follows):
Week 02 http://www.cs.trinity.edu/~rjensen/quiz99/week02a/1330fram.htm
Week 03 http://www.cs.trinity.edu/~rjensen/quiz99/week03a/week03a.htm
Week 04 http://www.cs.trinity.edu/~rjensen/quiz99/week04a/week04a.htm
Week 05 http://www.cs.trinity.edu/~rjensen/quiz99/week05a/week05a.htm
Week 06 http://www.cs.trinity.edu/~rjensen/quiz99/week06a/week06a.htm
Week 07 http://www.cs.trinity.edu/~rjensen/quiz99/week07a/class07a.htm
- Mexcobre Case Answers (a complex international hedging case involving a copper price swap)
Click here to download my SFAS 133 Tutorial Files at
Note especially the xls Excel files. You may want to try downloading first from
Internet Explorer rather than Netscape. Double click on an xls file. Many users will not
have their browsers configured properly for this type of download. They should consult
the readme htm or txt files in the Index listing of files. The process seems to work when I
downloaded the xls files on our Trinity University lab computers. The process failed with
a computer not having the latest version of Internet Explorer.
The above link gives you a listing of files to download. If the Excel xls files
are visible in your browser, they may navigate but will not be fully operational
unless you save them in your computer and then read them in a spreadsheet
program such as Excel or Lotus 123.
The Mexcobre Case solutions are in the 133spans.xls file.
- The Excel function tutorial is in the funclong.xls file. There are many other tutorial files dealing either with SFAS 133 or with my Working Paper 262 cases on computer security.
Many of the Excel xls files are workbooks that each have three or more sheets. The usual pattern is as follows:
- Sheet 1 contains questions and answers regarding a particular SFAS 133 example.
- Sheet 2 contains a spreadsheet of calculations and journal entries. In some cases I have enhanced the example with alternate scenarios. Please make special note of the cells with red dots. These have comments that explain the computations
- Sheet 3 contains a spreadsheet that allows students to perform sensitivity analysis on the solutions and journal entries.
- In some examples such as Example 2, Example 5, and my Working Paper 231 example file 133exb.xls, there is a Sheet 4 that goes into detail on how to calculate yield curves, basis amortizations, and interest accruals.
- Some workbooks have an additional Sheet 5 called Explanations
I wrote a document (screen play? short story? tutorial? case?) that is a takeoff on the Muppets. It is entitled "Clyde Gives Brother Hat a Lesson in Arbitrage" and can be found at http://www.trinity.edu/rjensen/acct5341/speakers/muppets.htm
One section in the appendix of the above document deals with some controversial issues of fair value accounting and makes reference to sections of both the FASB's new Exposure Draft on fair value accounting and the JWG position paper of the IASC on fair value accounting for banks.
You may also want to take a look at my Working Paper 231
Legal Settlement Exit Value Amortization Rate Accounting for Custom Interest Rate Swaps Having No Market Trading
A special Excel spreadsheet set of questions and detailed illustrations of yield curve derivations and interest accrual derivations can be downloaded by double clicking on the file 133exb.xls file in the listing of excel files at http://www.cs.trinity.edu/~rjensen
I hope that these will be of some help to you and your students. These tutorials are in the first draft stage. They will be corrected and added to as time permits.
The FASB has a CD-ROM tutorial on SFAS 133. See http://www.rutgers.edu/Accounting/raw/fasb/
The FASB's Derivatives Implementation Group website is http://www.rutgers.edu/Accounting/raw/fasb/public/index.html
The Chicago Board of Options Exchange (CBOE) has some excellent free tutorials on derivatives investment and hedging strategies. These do not help much, however, in learning about accounting for derivatives under SFAS 133 and IAS 39. You must download the Authorware player per instructions at http://www.cboe.com/education/
Computer Security Cases (With Answers)
Incident 1 Network Security http://www.cs.trinity.edu/~rjensen/262case1.htm
Incident 2 Phreaking Database Security http://www.cs.trinity.edu/~rjensen/262case2.htm
Bob Jensen at Trinity University