International


  

IASC Provides Guidance on Financial Instruments 
In September the IASC issued guidance on the implementation of International Accounting Standard no. 39, Financial Instruments: Recognition and Measurement.

IAS no. 39, which was released in March 1999 (see "IASC Puts Derivatives on the Balance Sheet" July99, JofA, page 20) , required that all financial assets and liabilities, including derivatives, be identified on the balance sheet and established concepts for recognizing, measuring and disclosing information about such assets and liabilities. It increased the use of fair value in accounting for financial instruments and introduced requirements relating to the standard’s vital component—hedge accounting. The implementation guidance will help auditors and financial analysts better understand what hedge accounting is actually about.

The new guidance addresses the application of IAS no. 39 to credit derivatives and financial reinsurance, financial guarantee and commodity contracts, definitions of derivatives and originated loans, accounting for embedded derivatives, and accounting for transfers of financial assets and portions of financial assets (for instance, in securitizations). It also considers accounting for transaction costs, fair value measurement, disclosures about financial instruments and hedge accounting issues (such as hedging of risk components).

The guidance is effective for financial statements dated January 1, 2001, or later. More information is available at www.iasc.org.uk .

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.