Revisions of Accounting for Financial Instruments after the Financial Tsuinami and a Discussion of Accounting for Financial Liabilities

• Main Authors: Wang,Yachun, 王雅君
• Other Authors: David M. Chen
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/99427000628080802907

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 99 === From mid-2007 the world has been confronted by the most severe and disruptive financial crisis since 1929, accounting principles faced great challenges while lots of problems were disclosed in the global capital market. By now we get to understand the various deficiencies of accounting principles and are ready to resolve and amend them. IASB initiated its long-term project to develop new standards of financial reporting for financial instruments ahead of time under the request of G20, its aim is to replace IAS 39 with IFRS 9, expected to be accomplished in three phases till the second quarter of 2011. At the mean time, Taiwan’s accounting system is on the process of converging to international accounting standards by 2013 for further global integration of its capital market and to promote its global status. This thesis starts with a summary of the first phase of IFRS 9 issued in 2009 which related to the new standards for classification and measurement of financial assets. Next, it discusses the exposure draft of fair value option for financial liabilities proposed in 2010. Ten international active banks (IABs) are chosen as examples to study the effects on net income of gains or losses of financial liabilities designated at fair value through profit or loss (FVtPL). Major policy recommendations are threefold. First, gains or losses of financial liabilities designated at FVtPL have diverse effects on net income of IABS and are negatively related to financial conditions such that they deserve particular attention. Second, IFRS is principle-based and focuses on economic substance, entities and accountants have to rely more on their professional judgments. Third, for risk management purposes, IFRS 9 and BaselⅢ should be implemented simultaneously.