Fair value and accounting standard for financial instrument
Journal Title: EIRP Proceedings - Year 2009, Vol 4, Issue 1
Abstract
The measurement of assets and liabilities at fair value, with its subsequent gains or losses recognized in profit or loss, should be limited to financial investments that are readily convertible into cash or cash equivalents in active markets, and are not constrained by any business purpose. On the other hand, even though assets and liabilities are exposed to changes in the market price, those that are expected to obtain future funds and are constrained by some business purpose (non-financial investments) should not be measured at fair value through profit and loss. Under the Accounting Standard for Financial Instruments, fair value measurement is required in certain circumstances similar to IFRS or US GAAP. This paper describes how the fair value is used under the Standard and purposes to decide whether fair value measurement is required or not based on the type of investment.
Authors and Affiliations
Ionica Holban (Oncioiu), Florin Oncioiu
Keywords
Related Articles
- EP ID EP85360
- DOI -
- Views 139
- Downloads 0
The Annex to the Annual Financial Statements in the Context of the European Directives
The annex is a constitutive part of the annual accounts, being a conceptual product mentioned in the art.2 of the CEE 4th Directive. This synthetic accounting document has the role to explain or to complete the element g...
Efficient Marketing Strategies in the Financial-Banking Field in Crisis Conditions
Financial-banking marketing will have to radically reform. The specialists in this field will need to give up the classic and aggressive tactics totally not transparent. They will sit in front of the clients with non sop...
A New Approach Regarding the Legal Contract Lesion
Why not agreeing upon a contract based on misbalanced services: because the party benefiting from an excessive service unlawfully exploited the precarious situation of the other party as a result of whom came to accept a...
Brewing Business vs Brewers' Identities (Culture - Equilibrium Factor between European Identity and Globalization)
If ever rough or severe, this title got right to the bottom of the question of the cultural diversity and the world nation’s identity, it points at the very truth: the businessmen and the financial oligarchy think they c...
European Union Integration of Romania and Process of Accounting Normalization
Lately the problem of national accounting disparity became stringent while the unification pressure became more powerful. Transnational corporations are being lasted for long time. Business globalization leaded to number...