193 paragraphs found
This Guidance Statement has been written in the context of general purpose fair presentation financial reporting frameworks, but may also be useful, as appropriate in the circumstance, in other financial reporting frameworks such as special purpose …
Australian Accounting Standards on financial instruments include AASB 7 Financial Instruments: Disclosures , AASB 132 Financial Instruments: Presentation , AASB 139 Financial Instruments: Recognition and Measurement , AASB 9 Financial Instruments and AASB …
This Guidance Statement focuses on the assertions of valuation, and presentation and disclosure, but also covers, in less detail, completeness, accuracy, existence, and rights and …
Financial instruments are susceptible to estimation uncertainty, which is defined in ASA 540 as “the susceptibility of an accounting estimate and related disclosures to an inherent lack of precision in its measurement.” [6] Estimation uncertainty is …
Financial instruments are used for: Hedging purposes (that is, to change an existing risk profile to which an entity is exposed). This includes: The forward purchase or sale of currency to fix a future exchange rate; Converting future interest rates to …
The use of financial instruments can reduce exposures to certain business risks, for example changes in exchange rates, interest rates and commodity prices, or a combination of those risks. On the other hand, the inherent complexities of some financial …
Business risk and the risk of material misstatement increase when management and those charged with governance: Do not fully understand the risks of using financial instruments and have insufficient skills and experience to manage those risks; Do not have …
Management’s failure to fully understand the risks inherent in a financial instrument can have a direct effect on management’s ability to manage these risks appropriately, and may ultimately threaten the viability of the …
The principal types of risk applicable to financial instruments are listed below. This list is not meant to be exhaustive and different terminology may be used to describe these risks or classify the components of individual risks. Credit (or …
Other considerations relevant to risks of using financial instruments include: The risk of fraud that may be increased if, for example, an employee in a position to perpetrate a financial fraud understands both the financial instruments and the processes …