Total views : 254
A Transformation Strategy for Financial Instruments according to the Requirements of International Standards
Background/Objectives: This research aims at improving the methodological framework, as well as calculation and procedural mechanism of measuring and recognizing derivative financial instruments by firms. Methods/Statistical analysis: The researchers used the following methods: abstract method; induction method; deduction method. Findings: Relevant challenges of transforming financial interests in accordance with the requirements of international standards, and transactions with derivative financial instruments in particular, have been discussed in this article. As a result of this research, the authors have presented key problems that arise in transformation of statements; original methodology of transforming financial instruments in accordance with the requirements of international financial reporting standards, and have developed detailed calculation tools to be applied in basic forms of financial statements of any firm, i.e. a statement of financial position and statement of total income. The authors have developed an overall fair and amortised cost measurement methodology for financial statements, and then provided a special measurement procedure for derivative financial instruments that includes measurement formulas for forward, future, option, swap contracts and warrants. Applications/Improvements: This methodology may be applied by organizations that transform their financial statements in accordance with the requirements of international financial reporting standards, including credit institutions, insurance companies, investment funds and town planning organizations that undergo listing procedure.
Financial Instruments, Derivative Financial Instruments, International Financial Reporting Standards, Transformation of Financial Statements.
- Accounting for financial instruments classification and measurement // FASB [Internet]. [cited 2016 Nov 11]. 2016. Available from: http://www.fasb.org/ jsp/FASB/FASBContent_C/CompletedProjectPage& cid=1176167837122.
- Brigadier D. Private placement programs & trade platforms: What they really are. A MB Assets White Paper, Memphis [Internet]. 2011. [cited 2016 Oct 18]. Available from: http:// www.gideongroup.net/fileadmin/template/gideon-group/ images/pdf/Private_Placement_Programs_and_Trade_ Platforms_White_Paper.pdf.
- Golden RG. Accounting for financial instruments. financial accounting standards board [Internet]. 2014. [cited 2016 Oct 19]. Available from: 2014. http://www.fasb.org/ jsp/FASB/Page/BridgePage&cid=1351027210037.
- Putra LD. Financial instruments definitions and examples.Accounting financial & tax [Internet]. 2009.[cited 2016 Oct 12]. Available from: 2009. http:// accounting-financial-tax.com/2009/05/financial-instrumentsdefinitions-and-examples.
- Zack GM. Fair value accounting fraud. New global risks and detection techniques. Translated from English. Maroseika: Moscow; 2011. [in Russian].
- King AM. Executive’s guide to fair value. Profiting from the new valuation rules. Translated from English. Maroseika: Moscow; 2010. [in Russian].
- Scott MC. Achieving fair value: How companies can better manage their relationships with investors. Chichester: Wiley & Sons; 2005.
- Kortleve N, Nijman T, Ponds E. Fair value and pension fund management. Oxford; Amsterdam: Elsevier; 2006.
- Barth ME, Beaver WH, Landsman WR. Value-relevance of banks’ fair value disclosures under SFAS 107. The Accounting Review. 1996; 71(4):513–37.
- Fabozzi FJ. The handbook of financial instruments. John Wiley & Sons, Inc.; 2011.
- Fabozzi FJ. Encyclopedia of financial models. John Wiley & Sons, Inc.; 2012.
- Frank JF, Markowitz HM. The theory and practice of investment management: Asset allocation, valuation, portfolio construction and strategies. John Wiley & Sons, Inc.; 2011.
- van den Berg B. Understanding financial markets and instruments [Internet]. [cited 2016 Nov 01]. Available from: http://www.eagletraders.com/books/afm/afm_preface.htm.
- Bunn E. Derivatives and hedging. Corporate Finance. 2002; 211.
- Spaulding WC. Financial instruments. Thismatter; 2013.
- Parameswaran S. Fundamentals of financial instruments: An introduction to stocks, bonds, foreign exchange and derivatives. John Wiley & Sons, Inc.; 2011.
- Sheshukova TG, Ponomareva SV. Estimation and transformation of financial assets and liabilities items to the IFRS format. International Accounting. 2011; 28:2–12.
- Choyzhalsanova AT. Financial instruments of transformation of economic resources of households in the Republic of Buryatia: Analysis of the dynamics and trends of development.Economics and Entrepreneurship. 2015; 9(1):354–61.
- Shtiller M. Economic essence and the maintenance of sources of formation of assets and their role in stabilization of the sustainable development of economic entities. Alatoo Academic Studies. 2016; 1:196–202.
- IAS 32/39, part 4 Hedging Accounting and Disclosure [Internet]. [cited 2013 May 20]. Available from: http:// bankir.ru/website/static/files/39/38729-_ias_3239____4.final.doc.
- Accounting for financial instruments [Internet]. 2012[cited 2016 Oct 15]. Available from: http://upload.news.esnai.com/2013/0327/1364369755891.pdf.
- Melnikova AS, Ponomareva SV. Basic theoretical and applied aspects of the assessment, management vanilla currency swap contract considered in the transformation of financial instruments in IFRS format. British Journal of Science, Education and Culture. 2014; IV, 1(5):574–83.
- Ponomareva SV, Melnikova AS. Financial instruments reflected by organizations in accordance with international standards of financial accounting of publicsector. Mediterranean Journal of Social Sciences. 2015; 6(3), S3:213–22. DOI: 10.5901/mjss.2015.v6n3s3p213.
- Amortized cost calculation strategy. Official web-site of the Central Bank of the Russian Federation (Bank of Russia) [Internet]. [cited 2013 May 20]. Available from: http:// www.cbr.ru/analytics/default.aspx?Prtid=norm_doc.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.