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Applying FAS no. 105: Financial instruments with off‐balance‐sheet risk
Author(s) -
Allen Jeffrey T.,
Lobel Steven H.
Publication year - 1991
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970020304
Subject(s) - balance sheet , accounting , scope (computer science) , business , financial instrument , statement (logic) , financial statement , financial statement analysis , finance , off balance sheet , income statement , financial accounting , financial ratio , accounting management , actuarial science , accounting information system , audit , computer science , political science , programming language , law
In connection with preparing their year‐end 1990 financial statements, companies will find themselves grappling with the requirements of Statement of Financial Accounting Standards No. 105, Disclosure of Information about Financial Instruments with Off‐Balance‐Sheet Risk and Financial Instruments with Concentrations of Credit Risk, for the first time. Although SFAS 105's disclosure standards seem relatively simple, implementing them will require management's active involvement, particularly with respect to identifying significant concentrations of credit risk. In addition, as the first Statement issued under the aegis of the FASB's financial instruments project, SFAS 105 contains definitions and concepts whose implications extend beyond its immediate scope.