April 2008
IBFed © 2008 Design: Laura Cerrato Picture: duplicate light ?ow by quentinh alias Quentin Houyoux
Executive Summary
This document sets appear the position of the International Banking Federation1 on the extent to which the uninfected comfort measure meets the needs of the user community and the objectives of ?nancial reportage. The objective of ?nancial reporting is to create a communication framework to assist users in making economic decisions, to assess the accountability of management for entrusted resources and to show cultivation about an entitys ?nancial positions and its ability to generate change ?ow. The essential criteria for meeting these objectives are that the provided information must be relevant, reliable, understandable and comparable. A key question addressed in this paper is whether the measurement of all ?nancial instruments in external autochthonic ?nancial statements is more relevant if prepared on a ordinary prize basis than if prepared under the current assorted measurement model. Both the mixed measurement and fair value chronicle models are evaluated against the qualitative characteristics that make information effective.
We concluded that: Fair value measurement provides an appropriate accounting base for ?nancial instruments held for trading purposes or otherwise managed on a fair value basis. However, full fair value measurement of ?nancial instruments would overstate the extent to which instruments are held for trading or managed on a fair value basis within the business concern and the extent to which deep and liquid markets exist. These are highly signi? bank building factors in determining the relevance of fair value in ?nancial reporting. A mixed measurement model provides investors with better information for evaluating ?nancial institutions. It requires fair value measurement for assets and liabilities managed on a fair value basis and recognizes that not all ?nancial instruments let...If you want to shoot a full essay, order it on our website: Ordercustompaper.com
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