Disclosures
An overview of the financial accounting standards for financial instruments and derivatives disclosures are outlined below for companies that follow International, US, or Canadian accounting standards. For a more complete and detailed description of each standard, it is recommended to visit the respective issuer's website.
IFRS 7 |
FAS 161 |
CICA 3862 |
|
| Title | Financial Instruments: Disclosures | Disclosures about Derivatives and Hedging | Financial Instruments – Disclosures |
| Issuer | International Accounting Standards Board (IASB) | Financial Accounting Standards Board (FASB) | Canadian Institute of Chartered Accountants (CICA) |
| Region | International | USA | Canada |
| Effective | January 1, 2007 | November 15, 2008 | October 1, 2007 |
| Overview | IFRS 7 is intended to enhance the disclosure of risks arising from financial instruments and provide greater transparency regarding the monitoring of measurement and management of financial risk. Some key areas: the company must run an analysis on their positions to see what would happen if markets changes (interest rates, FX rates, etc.) accounting function must report all quantitative data that management uses in making decisions. |
FAS 161 requires enhanced disclosures about an entity’s derivative and hedging activities, thereby improving the transparency of financial reporting. Specifically: uses derivatives instruments. instruments and related hedged items are accounted for under FAS 133 and its related interpretations. instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. |
The disclosure requirements of CICA Section 3862 and IFRS 7 are similar (i.e. they are converged), except in a few circumstances. CICA Section 3862 requires more specific disclosures about hedging transactions. |
| How FINCAD can help | FINCAD solutions can be used to help assess market risk, providing the tools for sensitivity analysis and providing industry-standard analytics with full documentation built into each product. Furthermore, all FINCAD solutions can easily be integrated with observable market data sources.
Click here to request a trial of one of the above solutions. |
||
We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. For a more comprehensive view of the standards/requirements, please visit the respective issuer's website.
