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FAS 119 and beyond: An update on FASB's financial instruments project
Author(s) -
Siurek Ryan H.,
Clark John M.
Publication year - 1994
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970060202
Subject(s) - financial instrument , financial statement , accounting , financial accounting , business , accounting management , finance , fair value , derivative (finance) , hedge accounting , financial ratio , mark to market accounting , accounting information system , audit
The rapid evolution and increasing use of derivatives and other financial instruments have dramatically affected global financial markets. Significant losses suffered by many users of these complex instruments have sparked concern from the SEC, Congress, and others. As part of its long‐standing financial instruments project, the Financial Accounting Standards Board (FASB) addressed those concerns in its recently‐issued FASB Statement No. 119, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments. Statement 119 requires entities to provide improved disclosures about derivatives and other financial instruments in 1994 year‐end financial statements. The FASB continues to direct its efforts toward the recognition and measurement of these financial instruments. The deliberations on hedging and hedge accounting are intended to answer some of the underlying questions regarding recognition and measurement.