Refereed Research Papers
A Study on Measurement Bases of Financial Instruments in IASB
― Focus on Trends since the 1990s ―
2020 Volume 27 Issue 1 Pages 29-38
Details
2020 Volume 27 Issue 1 Pages 29-38
In recent years, there is a trend to unify accounting standards internationally. In Japan, “convergence,” which is to eliminate differences between Japan Standards and the International Financial Reporting Standards (IFRS), and “adoption,” which is the application of the IFRS, are underway. Accounting comprises the process of recognition, measurement, bookkeeping, and reporting of financial information, of which “measurement” is, especially, important. Concerning financial instruments, the matter of whether all financial instruments should be measured at fair value (full-fair-value versus piecemeal-fair-value) has been discussed for many years.This study revealed the transition of attitudes relevant to the measurement bases of financial instruments in the (draft) IFRS and the International Accounting Standards Board (IASB) for about 30 years. The response to fair value measurement in IASB was also clarified, which was not explained in previous studies. In addition, this study suggests the points to be considered in the future revision of accounting standards for fair value measurement based on original opinions such as concerns about Level 2 fair value and the solutions for these.
