FASB seeking comments on derivative, hedging activity.The Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). has issued a proposal that it believes would provide investors and others with better information about the effects of derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. and hedging activities on a company's financial statements. Comments are due Mar. 2. The proposed statement specifically addresses constituents' concerns that existing disclosure requirements associated with FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 133, Accounting for 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, do not provide adequate information to financial statement users. Accordingly, the exposure draft would enhance the current disclosure framework by requiting that objectives and strategies for using derivative instuments be discussed in terms of underlying risk and accounting designation. Parties interested in providing input on Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133, should submit their comments by e-mail to director@fasb FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). .org, File Reference No. 1510-100 (visit www.fasb.org to obtain the proposal). |
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