Accounting Standards

AS 30 – Treatment for different categories of financial instruments

by R. Venkata Subramani

Category Measured at Changes in carrying amount (other than a designated hedge) Impairment test required? Financial assets and liabilities at fair value through profit or loss Fair value Income statement No Loans and receivables Amortized cost Income statement Yes Held-to-maturity investments Amortized cost Income statement Yes Available-for-sale Fair value Equity Yes Other financial liabilities Amortized [...]

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Amendments to reporting of Credit Default Swaps (CDS) – US GAAP FAS 161

by R. Venkata Subramani

FASB has come up with a list of new disclosures to be effective in financial statements for fiscal years that end after Nov. 15, 2008, in order to help investors get a grip on the financial implications for companies that have sold credit default swaps, Credit Default swaps are derivative contracts in which one counter [...]

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Summary of the Amendments to IAS 39 & IFRS 7 – October 2008

by R. Venkata Subramani

Reclassification of financial assets Certain non-derivative financial assets recognized are permitted to be reclassified with effect from 1st Nov 2008 prospectively. If the decision to reclassify is taken before 1st Nov then the entity has the option of giving effect to the reclassification retrospectively from any date starting 1st July 2008 till 31st October 2008. [...]

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Reclassification of certain financial instruments – Amendment to IAS 39

by R. Venkata Subramani

IASB amendments permit reclassification of financial instruments The International Accounting Standards Board (IASB) today issued amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures that would permit the reclassification of some financial instruments. The amendments to IAS 39 introduces the possibility of reclassifications for companies applying International Financial Reporting [...]

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Definition of Financial assets and financial liabilities

by R. Venkata Subramani

Financial Asset A financial asset is defined as one of the following type of asset as per the Accounting Standards: Cash Equity instrument of another entity A contractual right To receive cash or another financial asset from another entity To exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable [...]

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IFRS – IAS 21 – Translation of Foreign Currency Statements

by R. Venkata Subramani

Under the relevant Accounting Standards (IAS 21) foreign currency monetary items are treated differently to foreign currency non-monetary items. The essential feature of a monetary item is the right to receive or an obligation to deliver a fixed or determinable amount of units of currency. A non-mo0netary items does not have this right. Examples of [...]

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