Derivatives and other financial instruments

Article Abstract:

The Accounting Standards Board's recent discussion paper on derivatives and financial instruments proposes guidelines in the areas of disclosure, recognition and measurement. Under these proposals, companies using derivatives and similar instruments will be required to make extensive disclosures about the policies and objectives of their derivative activities. The disclosures will be in narrative form and will include quantified footnotes. Companies will also be required to state all derivatives and financial instruments, both short-term and long-term, at market value. The new proposals are intended to apply only to listed companies and similar public interest companies. The implications of the proposed guidelines are discussed.

Accounting Methods NEC, Derivatives (Financial instruments)

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Implementation of the Seventh Directive

Article Abstract:

The European Community's Seventh Company Law Directive on consolidated accounts requires that group accounts be prepared in a single form and offer a fair and true view. The Directive requires that groups be defined on the basis of control. Accounts must be kept within formats prescribed by the Fourth Company Law Directive, and the 'one-line' equity accounting technique must be used for accounting for associates. Parent/subsidiary relationships exist when one firm owns a majority of another firm's voting rights, has control over a majority of board members, can control an undertaking through an agreement with other shareholders, or can exercise dominant influence over an undertaking.

Accounting, auditing, & bookkeeping, Europe, Subsidiary corporations, Subsidiaries, Corporations, European Union, Great Britain, Corporations, European

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More than meets the eye

Article Abstract:

This article outlines the implications of the proposals in the standard Financial Instruments and Similar Items, drafted in 2000, when they are eventually implemented several years from now.

United Kingdom, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Accounting Services Regulation, Accounting services, Fairness, Accounting law

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