In praise of Occam's Razor: a critique of the decomposition approach in IAS 32 to accounting for convertible debt
Article Abstract:
IAS 32 Financial Instruments: Disclosure and Presentation contains a fundamental flaw concerning the classification and reporting of compound financial instruments. IAS 32 demands that accounting treatment of compound financial instruments should be according to their separate equity and debt components at the time of issue. A better approach would be to treat a compound financial instrument as a single instrument with both an equity and a debt nature, and to report it according to which nature is dominant at the time of disclosure.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Financial reporting quality: is fair value a plus or a minus?
Article Abstract:
Fair value accounting depends on the one-to-one relationship between exit prices and fair value. Both fair value accounting and historical cost accounting encounter serious matching problems. A valuation of Coca-Cola Company based on historical cost information is presented.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 2007
User Contributions:
Comment about this article or add new information about this topic:
Discussion of 'Financial reporting quality: is fair value a plus or a minus?'
Article Abstract:
Fair value acccounting provides better information when observable market prices exist. Investors seek information, and management should provide information, not opinions. The position statement of the Hundred Group on financial reporting is also included.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 2007
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The consequences of the FASB's 1998 proposal on accounting for stock option repricing. The effect of stock option repricing on employee turnover
- Abstracts: Comparison of prediction models for the compression force on the lumbosacral disc. Comparison of perceived comforts differences between standard and experimental load carriage systems
- Abstracts: Human C5aR knock-in mice facilitate the production and assessment of anti-inflammatory monoclonal antibodies. Rapid generation of specific antibodies by enhanced homologous recombination
- Abstracts: Investor response to cash flow information. International diversification and firm value. The term structure of implicit discount rates in security valuation
- Abstracts: Putting immunoinformatics to the test. A consensus epitope prediction approach identifies the breadth of murine [T.sub.CD8+]-cell responses to vaccinia virus