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Financial instruments: going international?

Article Abstract:

The International Accounting Standard Committee's Financial Instruments Steering Committee and the Canadian Institute of Chartered Accountants have jointly issued a discussion paper examining alternative approaches to accounting issues related to financial instruments. It is a response to the growing complexity of financial instruments, which has made traditional accounting methods inappropriate and inadequate. The paper introduces an accounting framework designed to help companies meet the challenges of the 21st century and to provide a basis for accounting standards consistent with company practices. The Steering Committee's proposed accounting solution resembles the FASB's 'financial components' approach presented in FAS 125 'Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.'

Standards, Financial instruments

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More rubbish for the shareholders' bin

Article Abstract:

The Department of Trade and Industry (DTI) has recommended that most shareholders be issued summary reports, arguing that the majority of shareholders ignore detailed financial reports. The DTI believes that summary accounting data will better inform the majority of shareholders by encouraging them to read financial reports. However, the DTI has not come up with a suitable framework for summary reports. A realistic approach to summary reports would be a narrative summary offering detailed commentary on major events that companies have dealt with, the progress of companies, and supplemental accounting information.

Laws, regulations and rules, United Kingdom. Department of Trade and Industry, Great Britain

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