1996 Fiscal Year Final Research Report Summary
ACCOUNTING AND DISCLOSURE FOR FINANCLAL INSTRUMENTS TRANSACTION BASED ON INTERNATIONAL COMPARISON AND FINANCIAL STUDY
| Project/Area Number |
07630118
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | OTARU UNIVERSITY OF COMMERSE |
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Principal Investigator |
YAMAMOTO Makio OTARU UNIVERSITY OF COMMERSE,DEPERTMENT OF COMMERSE,PFOFESSOR, 商学部, 教授 (10122938)
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| Co-Investigator(Kenkyū-buntansha) |
IMURA Shinya CHUO UNIVERSITY,DERERTMENT OF ECONOMICS,PROOFESSOR, 経済学部, 教授 (50176509)
NAKAMURA Tatsuya OTARU UNIVERSITY OF COMMERSE,DEPERTMENT OF COMMERSE,ASSOCLATE PROFESSOR, 商学部, 助教授 (20241416)
MATSUMOTO Kouichirou OTARU UNIVERSITY OF COMMERSE,DEPERTMENT OF COMMERSE,PFOFESSOR, 商学部, 教授 (70157361)
山本 真樹夫 小樽商科大学, 商学部, 教授 (10122938)
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| Project Period (FY) |
1995 – 1996
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| Keywords | FINANCIAL INSTRUMENTS / ACCOUNTING / DISCLOSURE / OFF BALANSE / MORGAGE / PROPERTY |
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| Research Abstract |
Today's deregulatory mivements involve liberalization in capital market, but on the other hand the movement requires extension disclosure to make it fair. We have engaged in "study of accounting and disclosure of finantial instruments and their trading" for 2years, because this subject is the one og the most important problems in such movement. Our study involves research of reporting practices in annual reports, trends of accounting standard formulation, and some normative suggetions as follows :
1) Financial informations about some risks accomopanied with changing market prices of marketable securities and other derivatives have to be disclosed. Many American and European companies disclose such informations in their notes (not on financial statements), but their contents are different among companies.
2) The shift from historical cost accounting to market value accounting (MVA) or mark-to-market accounting is able to recognize fair value or changing prices on financial statements. But today's accounting standards for financial instruments are partial and covering only some specific securities and derivatives. Therefore, in our opinion, all-inclusive standard or criteria have to be developed.
3) Even if MVA is preferable and applicable to balance sheet, because holding gains from revaluation are unrealized, it may be not preferable to recognize them as elements of income statement. In our opinion, these gains have to be disclosed in another financial statement for changing in owner's equity than balance sheet, income statement, and statement of cash flows, not to be contained in conventional periodic income. Our approach have an important implication : any holding gains of all assets may be able to disclose in this forth financial statement.
Besides our study involves a fundamental study of capital and corporate finance. This is an important groundwork as stated above.
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