FASB amends derivative definition, Statement 133. (Domestic).The Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) issued an Exposure Draft to clarify the definition of a derivative. Amendment of Statement 133 on Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and Hedging Activities amends AMENDS. A satisfaction, given by a wrong doer to the party injured for a wrong committed. 1 Lilly's Reg. 81. 2. By statute 24 Geo. II. c. 44, in England, and by similar statutes in some of the United States, justices of the peace, upon being notified of an Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. The purpose of the Exposure Draft is to improve financial reporting by requiring that financial contracts with comparable characteristics be accounted for in the same way. The Statement would clarify under what circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or a financial contract -- either an option-based or non-option-based contract -- with an initial net investment would meet the characteristic of a derivative discussed in paragraph 6(b) of Statement 133. The proposed effective date for the accounting change is the first day of the first fiscal period beginning after Nov. 15, 2002, which for calendar yearend companies will be Jan. 1.2003. The comment period concludes on July 1, 2002. A copy of the Exposure Draft is available on the FASB's Web site at www.fasb.org. |
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