Accounting for Financial Instruments under IAS32 and IAS39

• Main Authors: Li,Mu-Hua, 李慕華
• Other Authors: David M.Chen
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/36737636012323614306

碩士 === 輔仁大學 === 會計學系碩士班 === 94 === Riding the tidal wave of liberalization and globalization, the financial system has developed a lot of innovative financial instruments and proliferated with their usage worldwide on an accelerating path. In addition, to facilitate cross-border capital raising and securities listing, there is a growing need to develop a single set of high quality, global accounting standards that enhances transparent and comparability of financial statements. Because the cost-based accounting system can no longer be able to provide the capital market with relevant information about financial instruments, much effort has been devoted to the fundamentally paradigm shift to the fair value-based accounting treatments. The International Accounting Standards Board’s predecessor body, the International Accounting Standards Committee, IASC, began to study this issue in 1988, followed by the publication of IAS32 in March 1995 and IAS39 in December 1998, and revised twice afterward. This thesis starts with a comparative analysis of major differences between cost-based accounting and fair value-based accounting. Next, , it discusses the standard setting process of accounting for financial instruments and related accounting principles and concepts under the framework of IAS32 and IAS39, including the scope, recognition, measurement, hedging, disclosure and presentation. Major policy recommendations are threefold. First, international accounting standards have gained the momentum of global acceptance and Taiwan should follow the trail of the global community. Second, while the development of innovative financial instruments is crucial for the functioning of domestic capital market, the establishment of reliable valuation standards or an appraisal system is the key to market discipline. Third, accounting training should go much beyond mere bookkeeping and emphasize the knowledge of fields of application.