Accounting for capital instruments

Article Abstract:

Proposals of the Accounting Standards Board (ASB) for reforming financial performance reports will be easy to apply but will leave such reports less sensible. The ASB's proposals require the treatment of capital instruments with 'an obligation to transfer economic benefits' as liabilities. In effect, the proposals require all debt, including those that are convertible to equity, to be reflected in balance sheets as liabilities. This split accounting approach taken by the ASB in its proposals provides the wrong message as it allows the overriding of debt's commercial substance by its legal form. Although consistent and unsophisticated, the ASB's approach leaves UK accountancy open to attack as it does not conform to the international standard, namely the International Accounting Standards Committee's 'Financial Instruments,' or E 40.

Corporation reports, Company reports

---

Deferring to the inevitable, or not

Article Abstract:

This article discusses an new accounting standard for deferred tax proposed by the Accounting Standards Board. Criticism of the partial provision method, reasons for change, and consequences of the new standard are discussed.

Accounting, Deferred tax (Accounting)

---

It does make sense!

Article Abstract:

The author defends the Accounting Standards Board's position on self-insurance. Two provisions consistent with Financial Reporting System 12 are discussed.

Financial statements, Self-insurance, Self insurance

Similar abstracts:

• Abstracts: Accounting for ourselves: accounting practice and the discourse of ethics. The Legitimate Concern with Fairness: a comment
• Abstracts: Accounting in the context of public sector management reform. Public sector accounting in New Zealand: an update and clarification
• Abstracts: Accounting in the context of public sector management reform. part 2 Developing a conceptual framework for central government financial reporting: intermediate users and indirect control
• Abstracts: Delphi warns prospects about competitors' prices. EDS emerges from the shadows. Innovative telecommunications: new tools find applications in product planning, sales and customer service, market intelligence
• Abstracts: Optimal contracting and insider trading restriction. The intraday speed of stock price adjustment to major dividend changes: bid-ask bounce and order flow imbalances

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.