This site is dedicated to accounting for financial instruments and derivatives and will give comprehensive resources on accounting standards on financial instruments such as IAS 39, FAS 133, etc.

Accounting Standard for financial instruments is unarguably one of the most current, most talked about accounting issue. A survey by PricewaterhouseCoopers questioned Fortune 1000 companies and concluded that:

• 99% of senior executives are fully aware of the implications of the accounting standard, and as many as 96% have assigned a senior officer to monitor preparedness for FAS 133
• The chief concerns, in order of significance are as follows [figures in brackets indicate the percentage of respondents]:
  • 1 Testing hedge effectiveness [62%]
  • 2 Documenting risk management strategies [61%]
  • 3 Valuing derivatives [57%]
  • 4 Earnings volatility [54% ]
  • 5 Identifying derivatives [47%]
  • 6 Stock price volatility [26%]
  • 7 Investor unease [22%]
• Companies will be more careful in entering into derivative contracts, given the fact that they have to recognise profits/losses as they go.
• FAS 133 is making companies review and assess their risk management strategies.

Ginve the significance of the accounting standard, we dedicate this website to free education on accounting standards for financial instruments.

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