1993 Fiscal Year Final Research Report Summary
DISCLOSURES ABOUT FINANCIAL INSTRUMENTS : COMPARATIVE STUDY OF U.S.A AND JAPAN
| Project/Area Number |
04630082
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
Accounting
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| Research Institution | WASEDA UNIVERSITY |
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Principal Investigator |
OOTSUKA Muneharu WASEDA UNIV.COMERCIAL SCHOLL, PROF., 商学部, 教授 (60063749)
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| Project Period (FY) |
1992 – 1993
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| Keywords | FASB / SFAS105 / SFAS 107 / off-balance-sheet risk / market value / disclosure of credit risk |
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| Research Abstract |
Financial Accounting Standards Board of U.S.A has issued two statements of Financial Accounting Standards on the disclosure about financial Instruments. One is Statement No.105 and the other is Statement No.107. The former focuses on information about the extent, nature and terms of financial instruments with off-balance-sheet-credit or market risk and about concentrations of credit risk for all financial instruments. The latter requires all entities to disclose the market value of all financial instruments.
Investigation into annual reports of U.S big banks makes clear that interest rate swap, financial futures, forward contracts are main financial instruments with off-balance -sheet-risk. Many banks has identified regional concentration as significant concentation of credit risk.
Japanese corporations do not exhibit financial instruments with off-balance-sheet-risk in their annual reports.
In Japan, disclosures about market value are required only about option, futures and investment in securities. In this respect, disclosures of Japanese corporations about market value of financial instruments are limited in their scope compared with those of U.S corporations, but Japanese corporations present more detailed information about financial instruments cited above than U.S corporations.
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