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| « ICAI - Announcement... | L&T posts 38% jump in Q4 net, declares bonus share issue... » |
ICAI council Approves Accounting Standard (AS) 32, |
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| May, 26th 2008 |
The Council of the Institute has approved Accounting Standard (AS) 32, Financial Instruments: Disclosures. The objective of this Accounting Standard is to require entities to provide disclosures in their financial statements to enable users to evaluate the following:
the significance of financial instruments for the entitys financial position and performance; and
the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting period, and how the entity manages those risks.
In view of the above, the Accounting Standard will bring about greater transparency in the disclosures related to financial instruments such as derivatives and the exposures to the risks related to such financial instruments and how the entity manages its risks.
It may be noted that the Institute has already issued the related Accounting Standards, namely, Accounting Standard (AS) 30, Financial Instruments: Recognition and Measurement and Accounting Standard (AS) 31, Financial Instruments: Presentation. Issuance of this standard completes Accounting Standards on the subject of Financial Instruments. Like AS 30 and AS 31, the Council proposes to make AS 32 recommendatory from 1st April 2009 and mandatory from 1st April 2011.
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