FRED 13: derivatives and other financial instruments: disclosures
Article Abstract:
Financial Reporting Exposure Draft (FRED) 13, 'Derivatives and Other Financial Instruments: Disclosures,' requires all covered entities to include in their financial statements information about the derivatives and other financial instruments that have issued or are currently holding. These disclosures are intended to help financial report users to gain a better understanding of the potential risks that these instruments pose to a company's performance and financial condition, and of how such risks are being managed. The required narrative disclosures include the reporting entity's objectives, policies and strategies for holding and issuing financial instruments. Numerical disclosures are also to be reported, including analyses of the company's borrowings and interest-bearing assets, and summaries of its undrawn committed borrowing facilities and the fair value of financial instruments held for trading purposes.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
FRED 13 supplement: derivatives and other financial instruments: disclosures by banks and similar institutions, July 1997
Article Abstract:
The Accounting Standards Board has introduced modifications to Financial Reporting Exposure Draft (FRED) 13 in recognition of the uniqueness of the accounting for the financial instruments of banks and other similar institutions. The revisions allow banks to make disclosures focusing on the major risks inherent to their financial instruments. The exposure draft indicates that there should be separate disclosures for market price risks from the trading book and from the non-trading book. Amendments were also made on the summary section, definitions, statement of standard accounting practice, and explanations. An appendix provides illustrations of the disclosures, specifically interest rate sensitivity gap analysis, currency rate risk disclosures, fair value disclosures, maturity disclosures and trading book disclosures.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
The STRGL between book and tax
Article Abstract:
It seems that the Accounting Standards Board (ASB) has designed proposals on accounting for derivatives and other financial instruments without giving much thought on the tax implications. Recent proposals contained in its discussion paper, 'Derivatives and Other Financial Instruments,' may have a significant effect on the tax exposures of British companies. The proposals require all financial instruments to be put in the balance sheet at their current value. To protect the profit-and-loss account from the 'mark to market' basis of accounting, the ASB recommends that some changes in value be recognized in the statement of total recognized gains and losses. The result of this provision is greater volatility in tax liabilities. The ASB should consult with tax legislators and advisers to provide clarification.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Finally! An IASC standard on financial instruments. New rules for interims. Interim reports: who, what and when?
- Abstracts: Invesco English and International Investment Trust. Phoenix swoops on the UK. Vultures to profit from sickly trusts
- Abstracts: Out of Wall Street's shadow. Beyond the Footsie's summertime blues
- Abstracts: Raising aspirations. Jump starting insurance sales. Crossing the divide
- Abstracts: Banks and governance in transition economies. Interlocking directorates across listed companies in Italy: the case of banks