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
Barth M.E., Landsman W.R. How Did Financial Reporting Contribute to the Financial Crisis? European Accounting Review, 2010, vol. 19, iss. 3, pp. 399–423.
Emerson D., Karim K., Rutledge R. Fair Value Accounting: A Historical Review of the Most Controversial Accounting Issue in Decades. Journal of Business & Economics Research, 2010, vol. 8, no. 4, pp. 77–85.
Kuz'min A. [Economic-mathematical modeling of the ruble exchange rate under Russia's membership in the WTO]. Den'gi i kredit= Money and Credit, 2014, no. 5, pp. 45–49. (In Russ.)
Laux C., Leuz C. Did Fair-Value Accounting Contribute to the Financial Crisis? Journal of Economic Perspectives, 2010, vol. 24(1), pp. 93–118.
Stojilković M. Fair Value Accounting – The Beginning of the End. Economics and Organization, 2010, vol. 7, no. 2, pp. 163–177.
Volegova N.V., Shishkova T.V. [The main problems of accounting for and measurement of financial instruments]. Audit i finansovyj analiz = Audit and Financial Analysis, 2010, no. 2, pp. 53–56. (In Russ.)
Druzhilovskaya T.Yu., Druzhilovskaya E.S. [Accounting for long-term assets available for sale]. Buhgalterskij uchet = Accounting, 2015, no. 9, рр. 18–23. (In Russ.)
Gerasimova L.N. [Current trends in accounting for derivatives]. Bukhgalterskii uchet, analiz, audit i nalogooblozhenie: problemy i perspektivy: materialy II Vserossiiskoi zaochnoi nauchno-prakticheskoi konferentsii [Proc. 2nd All-Russ. Sci. Conf. Accounting, Analysis, Audit and Taxation: Problems and Prospects]. Penza, MNITs Publ., 2014, pp. 26–29.
Ul'yanov V.S. [Methodological framework for financial derivatives accounting]. Ekonomika i upravlenie = Economy and Management, 2011, no. 4, рр. 111–114. (In Russ.)
Rozhnova O.V. [Professional judgement on derecognition of a financial asset]. Auditorskie vedomosti = Audit Journal, 2014, no. 5, pp. 49–55.(In Russ.)
Birt J., Rankin M., Song C.L. Derivatives Use and Financial Instrument Disclosure in the Extractives Industry. Accounting & Finance, 2013, vol. 53(1), pp. 55–83.
Kuz'min A.Yu. Otsenka i uchet finansovykh instrumentov v sootvetstvii s MSFO [Measurement of and accounting for financial instruments under IFRS]. Moscow, Higher School of Finance and Management RANEPA Publ., 2010.
Clark P.B., MacDonald R. Filtering the BEER: A Permanent and Transitory Decomposition. IMF Working Paper, 2000, no. WP/00/144, 37 p.
Obstfeld M., Rogoff K. Exchange Rate Dynamics Redux. Journal of Political Economy, 1995, vol. 103, iss. 3, pp. 624–660.
Stockman A.C. A Theory of Exchange Rate Determination. Journal of Political Economy, 1980, vol. 88, iss. 4, pp. 673–698.
Renders A. Changing Fair Value Accounting. Forum Financier,Revue Bancaire et Financiere, 2009, no. 2-3, рр. 152–155.
Chea A.C. Fair Value Accounting: Its Impacts on Financial Reporting and How It Can Be Enhanced to Provide More Clarity and Reliability of Information for Users of Financial Statements. International Journal of Business and Social Science, 2011, vol. 2, no. 20, рр. 12–19.
Laux C., Leuz C. The Crisis of Fair-Value Accounting: Making sense of the recent debate. Accounting, Organizations and Society, 2009, vol. 34, iss. 6-7, рр. 826–834.
Gebhardt G., Mora A., Wagenhofer A. Revisiting the Fundamental Concepts of IFRS. Abacus, 2014, vol. 50, iss. 1, pр. 107–116.
Barth M.E. Measurement in Financial Reporting: The Need for Concepts. Accounting Horizons, 2014, vol. 28(2), pp. 331–352.