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Derivatives reporting in the UK: A treasury perspective on the introduction of FRS 13

Derivatives reporting in the UK: A treasury perspective on the introduction of FRS 13 The past twenty years have seen a significant increase in the use of derivative financial instruments by companies throughout the world (Berkman and Bradbury 1996; Berkman, Bradbury and Magan, 1997a; Berkman, Bradbury, Hancock and Innes, 1997b; Bodnar, Hayt, Marston and Smithson, 1995; Bodnar, Hayt and Marston, 1996; 1998; Collier and Davis, 1985). This paper examines the impact of Financial Reporting Standard 13: Derivatives and Other Financial Instruments, Implementation and Disclosures, on treasury department activities. In particular, the researchers conducted interviews with UK treasury department staff to assess their general attitudes to, and the perceived impact of, FRS 13. In general, the treasurers responded favourably to the standard, and considered the narrative disclosures to be particularly useful. The numerical disclosures were considered to be very detailed and specialised; interviewees thought that users might have difficulty in understanding them. However, the implementation of IAS 39, that becomes mandatory for all EC countries from 2005, was causing treasurers far more concern. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Accounting Research Emerald Publishing

Derivatives reporting in the UK: A treasury perspective on the introduction of FRS 13

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0967-5426
DOI
10.1108/96754260480001039
Publisher site
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Abstract

The past twenty years have seen a significant increase in the use of derivative financial instruments by companies throughout the world (Berkman and Bradbury 1996; Berkman, Bradbury and Magan, 1997a; Berkman, Bradbury, Hancock and Innes, 1997b; Bodnar, Hayt, Marston and Smithson, 1995; Bodnar, Hayt and Marston, 1996; 1998; Collier and Davis, 1985). This paper examines the impact of Financial Reporting Standard 13: Derivatives and Other Financial Instruments, Implementation and Disclosures, on treasury department activities. In particular, the researchers conducted interviews with UK treasury department staff to assess their general attitudes to, and the perceived impact of, FRS 13. In general, the treasurers responded favourably to the standard, and considered the narrative disclosures to be particularly useful. The numerical disclosures were considered to be very detailed and specialised; interviewees thought that users might have difficulty in understanding them. However, the implementation of IAS 39, that becomes mandatory for all EC countries from 2005, was causing treasurers far more concern.

Journal

Journal of Applied Accounting Research – Emerald Publishing

Published: Nov 1, 2004

Keywords: Treasury department; FRS 13; Annual reports

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