The risk of rising interest rates is now a significant concern for borrowers of floating rate loans. To combat this risk, many organizations enter into interest rate swaps. Brett Schwantes, Director of Auditing for Wipfli LLP, reviews the basic characteristics of this type of derivative and why an entity would enter into one. Other topics include accounting hedges, alternatives to interest rate swaps, and the impact of today's environment on the use of these tools.
Prerequisites/Advanced Preparation:
Work experience in financial reporting or accounting, or an introductory course in accounting