International Accounting

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Accounting for price and exchange differences of bonds according to IFRS requirements

Vol. 20, Iss. 4, FEBRUARY 2017

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Received: 15 August 2016

Received in revised form: 23 September 2016

Accepted: 5 October 2016

Available online: 1 March 2017


JEL Classification: G12, G15, M41

Pages: 184-197

Kuz'min A.Yu. Financial University under Government of Russian Federation, Moscow, Russian Federation

Importance The article addresses methodological aspects of measurement and accounting for cumulative results of revaluation of foreign currency bonds arising from the requirements of international financial reporting standards IAS 39, IFRS 7, IFRS 9 and IAS 21.
Objectives The aim of the study is to develop an algorithm and measurement tools for foreign currency bond accounting, and provide recommendations for their practical application.
Methods The study employs system analysis, models of financial mathematics, situational and dynamic approaches, tabular interpretation of information and factual material.
Results I developed tools for international corporate bonds accounting and measurement. The measurement of financial result of the financial instrument revaluation for the purpose of financial statements preparation is based on the algorithm from the standpoint of accounting process involving a currency component and uncertainty of the goals of ownership.
Conclusions Scientific and practical significance of the study is determined by the development of applied scientific tools, including accounting and valuation algorithms and procedures, process models that can be used in practical work of accounting departments of financial and non-financial institutions when preparing IFRS-based financial statements.

Keywords: IАS, IFRS, revaluation, foreign currency bond


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