Finally! An IASC standard on financial instruments

Article Abstract:

The International Accounting Standards Committee Board has finally approved a new International Accounting Standard (IAS) for financial instruments. The board has been attempting to establish a standard for financial instruments since 1988 and has considered three earlier proposals that did not reach the final stage. The approval for the new IAS was given on Dec 1998. IAS No 39, 'Financial Instruments: Recognition and Measurement,' is applicable to publicly traded and private enterprises and takes effect for annual financial statements that begin on or after Jan 1, 2001. The standard substantially extends the use of fair values, especially on the asset side of the balance sheet. Financial assets still recognized at cost include originated loans and receivables, certain other fixed-maturity investments, and unquoted equities with unmeasurable fair value.

Accounting and auditing, Financial instruments

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New rules for interims

Article Abstract:

The International Accounting Standards Committee (IASC) has released a new standard that would govern interim financial reporting. This report features a full set of financial statements for a period shorter than the whole financial year of the enterprise. The IASC did not discuss the type of enterprises that must issue interim financial reports, the frequency of such reports and the timing of the reports. What the standard does tackle is the definition of the minimum content of an interim financial report, which includes disclosures, and the accounting recognition and measurement principles that should be used. The minimum content is composed of a condensed balanced sheet, condensed income statement, condensed cash flow statement, condensed statement indicating equity changes, and some explanatory notes.

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Interim reports: who, what and when?

Article Abstract:

The International Accounting Standards Committee (IASC) is working on a new standard for interim reporting. Academic research consistently provides evidence that accounting data for part of a financial year or for a 12-month period ending on a date other than the financial year end help increase the accuracy of earnings and share price forecasts, and have an impact on investor decisions. The IASC interim reporting project is guided by several questions, including whether interim reporting should really be required, what reporting format to use, how often the report should be submitted, and what interim data should be included in the report. Other questions being considered are what accounting principles interim reports should follow and whether these reports should be audited.

International aspects, Accounting

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