Overview of the FASB's financial instruments project

As the financial activities of businesses are being radically changed by new financial instruments, the financial reporting function is having trouble keeping up. Therefore, the Financial Accounting Standards Board (FASB) is doing something about it. Among the many issues of concern are: 1. off-bala...

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Bibliographic Details
Published in:Journal of accountancy 1989-11, Vol.168 (5), p.42
Main Authors: Woods, Clifford C, Bullen, Halsey G
Format: Magazinearticle
Language:English
Subjects:
Accounting
Accounting standards
Business & industry
Disclosure
Finance
Financial instruments
Financial reporting
Financial statements
Task forces
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Summary:As the financial activities of businesses are being radically changed by new financial instruments, the financial reporting function is having trouble keeping up. Therefore, the Financial Accounting Standards Board (FASB) is doing something about it. Among the many issues of concern are: 1. off-balance-sheet financing, 2. unjustifiable deferral of losses, 3. premature recognition of gains, and 4. inadequate disclosure about risks. The FASB and its task force are working on accounting issues of financial statements in 3 separate, though related, phases: 1. disclosure, 2. recognition and measurements, and 3. distinguishing between liabilities and equity. The FASB plans to issue at least 3 documents on financial instruments in the next 12 months covering the results of their studies and dealing with these particular phases of their work.
ISSN:0021-8448
1945-0729