What's all the fuss about?

Article Abstract:

Investors, lenders and other users of financial instruments bemoan the inadequacy of current financial statements in accounting for financial instruments. They wonder why the balance sheet does not reflect these financial products despite the increasing sophistication and volume of these instruments. Global capital markets are demanding a unified and consistent set of accounting standards, and are requiring further disclosure. However, there are two roadblocks to these objectives, namely the distrust of current values and the possible consequences in terms of profit recognition, specifically for connected transactions. In response to such sentiments, standard setters should determine how they will go about shifting to the more appropriate current value based system. They should also ascertain if changes that are not related to all financial instruments are sufficient.

Financial instruments

---

Don't do this to us, please

Article Abstract:

The uncertainty in the accounting environment has been having negative economic effects on the British leasing industry and its customers. In 1997, the International Accounting Standards Committee endorsed the revision of International Accounting Standard No 17, 'Leases.' The revised version advocates the 'qualitative risks and rewards' approach, defining a transaction where the lessee assumes substantially all the risks and rewards of ownership as a finance lease. The Accounting Standards Board is presently working on a new lease accounting document which is scheduled to be published in the middle of 1999. The ongoing discussions about fundamental lease accounting reform is harmful for lease companies heavily dependent on long-term contracting in particular and for leasing in general as compared to all other types of executory contracts.

Lease and rental services industry, Lease and rental services

---

Similar abstracts:

• Abstracts: Call the market. Hanging on the telephone. Jardinerie Interiors set to bloom
• Abstracts: Waiting for the upturn. The Asian turmoil and those that survived it
• Abstracts: The travails of the LRT 3. MTRC pays up to get its bonds done
• Abstracts: The myths and realities of Asian growth. Malaysia: into a period of vulnerability
• Abstracts: Tuning up the orchestra. The politics of the true and fair view. Members Handbook Statement 1.220: Guidance on Ethical Matters for Members in Business

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