1999 Fiscal Year Final Research Report Summary
Distinguishing between Liabilities and Equity
| Project/Area Number |
10630136
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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 | Waseda University |
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Principal Investigator |
OTSUKA Muneharu Waseda University, School of Commerce, Professor, 商学部, 教授 (60063749)
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| Project Period (FY) |
1998 – 1999
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| Keywords | financial instruments / FASB / distinguishing between liabilities and equity |
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| Research Abstract |
Our research begins with studying the nature of financial instruments because distinguishing between liabilities and equity is particularly important in the financial instruments like comvertible debenture. Then, we investigate the publications of the FASB (Financial Accounting Standards Board) on the subject. FASB issued discussion memorandum in 1990 titled "Distinguishining between Liabilities and Equity Instruments and Accounting for Instruments with Chatacteristics of Both". FASB was inactive after issuing discussion memorandum. FASB begin deliberations on the issues in 1996. FASB developes the approach to distinguish between liabilites and equity financial instruments based on the characterisitcs of those components.
We analysed the FASBs approach in depth and discussed the adaptabiliy of the approach to the financial instruments. We should compare the approach to IASCs and Japanese accounting standards.
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