The book is aimed at seniors and master students in accounting. It fills a gap that is growing wider. For the past 25 years, risk has consistently grown in prominence in accounting standards and thought. It became more evident with the tremendous growth in derivatives, securitization and hedging. Accounting standard setters have to keep pace and devise new ways of accounting. The most revealing aspect of this development is to observe the Financial Accounting Standards Board, the International Accounting Standards Board, the National Association of Insurance Commissioners and other bodies take a serious look back at prior standards and ask the question: "why did we ignore risk?" As a result, we have a plethora of revisions of accounting ”a revision that is growing at an incredible pace. This is the first book to explore topics that explore accounting for what we know.The first to examine hedge accounting or even insurance and reinsurance contracts. As the economy has shifted from manufacturing to financial services, hundreds of instruments and contracts have been developed to manage the financing and related risks. Options, swaps, forwards and futures are traded and used by most companies for investing or hedging. This is the first book in accunting books to cover and give details as well as provide a background in risk.