This course offers an overview of swap accounting. Starting with basic definition of swap, the course discusses different types of swap instruments hedge funds typically trade in and benefits of having exposure in swaps. The course further discusses accounting entries for swaps, how to calculate gain/loss on swaps and how to show swap income and open swap positions on a fund’s financials.
Publication Date: June 2025
Topics Covered
- Overview of Swap
- Different type of Swaps
- Accounting entries
- Opening and Closing a Swap position
- Interest and dividend on Swap
- Pricing/Valuation
- Calculation of Swap Income/Loss
- Swap Financing
- Reconciliation with Counterparties
- Swaps on Fund’s Financials
Learning Objectives
- Identify different types of swap products
- Recognize benefits of investing in swaps
- Identify key elements of swap PnL, pricing and reconciliation
- Identify accounting entries necessary for swap account
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
Basic knowledge of Accounting (Journal entries, Trial Balance), Basic understanding of how security investment works
Advance Preparation
None
Instructor
Rita BasuMallick
CPA, MBA, CA
Rita is a CPA with over 17 years of experience in investment accounting , middle office operations and fund administration, including roles at State Street, SS&C Technologies, Linedata and PwC. Her CPE courses focus on hedge fund structures, portfolio accounting systems, valuation of complex financial instruments, and regulatory reporting. Backed by an MBA in Financial Markets from NYU Stern and Chartered Accountant credentials from India, she brings real-world expertise with instructional clarity.