Ok, so I've read your posts on the nuts and bolts of the accounting reasoning and quadruple accounting elsewere, but the treatment of derivatives under this framework still confuses me a bit. Take the TRS (total return swap) example here for instance: I get the economic exposure treatment "swap can be understood as matched parallel loans", and I get why you combined the loans into a single swap contract on Archegos' asset side. What I don't understand is since balance sheets should balance, what liability entry on Archegos' liability side corresponds to the TRS recorded as an asset?
"Soon parted" is fascinating. A high-level didactic tool.
Each entry is the key to an understanding of an apparently complex world that, thanks to the explanations and its illustration through the stylized T-accounts, becomes understandable.
Gracias y felicidades. Iñigo