Home  Journals  International Accounting  26(272) - 2013 July

Estimation of cost of combined financial instruments in financial statements

Available online: 9 July 2013

Subject Heading: ON THE WAY TO THE INTERNATIONAL STANDARDS

JEL Classification: 

In the article the algorithm of determination of cost of the combined financial instruments in financial statements is presented. The technique of distribution of initial cost of hybrid financial instruments between capital and obligation components on the example of convertible bonds is offered. The method of calculation of the amortized cost with application of an effective rate of percent is described. Requirements to disclosure of information on financial obligations in financial statements are generalized. The material is based on researches of leading Russian authors, studying of International Financial Reporting Standards, and also information opened in consolidated financial statements.

Keywords: financial liabilities, hybrid financial instruments, convertible bonds, derivatives, fair value, amortized cost, net present value, effective interest rate

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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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