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-   -   Interest rate cap accounting - recording expense and FMV adjustments (https://www.askmehelpdesk.com/showthread.php?t=745898)

  • Apr 24, 2013, 03:18 PM
    superchristine
    Interest rate cap accounting - recording expense and FMV adjustments
    ABC Company buys a $10 million notional interest rate cap for $200,000.00 The entry is recorded as:

    Interest Rate Cap $200,000 DR
    Cash $200,000 CR

    A schedule of caplet expenses is provided, and the first one is $400.00. How should this expense be recorded? How should the fair market value adjustment be recorded?

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