Pakistan Journal of Social Sciences
ISSN: Online 1993-6052ISSN: Print 1683-8831
Abstract
The financial industry and parties relating to this has seen the development of financial products across the world. The trend in development of financial products has made the international and national setters of accounting standards more concerned. This calls for the development of accounting standards for financial products both traditional and derivative. IASB has promulgated two IASs – 32 and 39 for accounting and reporting of the financial products. In Bangladesh, both ICAB and ICMAB being members of IASB, have been thinking of adopting these. The present paper has analyzed these two standards with examples and also highlighted some issues relating to the implementation of these standards in the country. These concerns are reported to be volatility in earnings, firm`s commitments vs. forecasted transactions, different accounting for essentially the same transactions, no hedge accounting for covered call strategies etc. These issues are required to be solved in line with the suggestions given by the authors. The paper has also suggested for the acceptance of current accounting guidelines for the business enterprises and thereby facilitate the acceptance of IASs – 32 and 39.
How to cite this article:
Mohammad Saleh Jahur and Mohammad Aminul Karim . Financial Instruments: Measurement, Presentation and Accounting for
Derivatives with Special Reference to IASs-32& 39.
DOI: https://doi.org/10.36478/pjssci.2004.01.10
URL: https://www.makhillpublications.co/view-article/1683-8831/pjssci.2004.01.10