Legal, regulatory and accounting aspect of credit derivatives
Grant-in-Aid for Scientific Research (B)
|Allocation Type||Single-year Grants|
|Research Institution||University of Tsukuba|
YANAGA Masao University of Tsukuba, Graduate School of Business Sciences, Professor, 大学院・ビジネス科学研究科, 教授 (60191144)
|Project Period (FY)
2002 – 2005
Completed(Fiscal Year 2005)
|Budget Amount *help
¥12,000,000 (Direct Cost : ¥12,000,000)
Fiscal Year 2005 : ¥2,400,000 (Direct Cost : ¥2,400,000)
Fiscal Year 2004 : ¥2,400,000 (Direct Cost : ¥2,400,000)
Fiscal Year 2003 : ¥4,100,000 (Direct Cost : ¥4,100,000)
Fiscal Year 2002 : ¥3,100,000 (Direct Cost : ¥3,100,000)
|Keywords||credit derivatives / capital adequacy requirements / corporate tax / measurement of assets / measurement of liabilities / capacity of legal person / gaming and wagering / 会計 / 行為能力 / 公序良俗 / デリバティブの会計 / デリバティブの税務 / クローズ・アウト・ネッティング / 保証 / 会計処理|
First, the validity and enforceability of credit derivative contracts have been examined, especially in relation to public order and good moral (gaming and wagering) and the capacity of the parties (legal persons), based on the comparative survey of the treatments in Continental and Anglo-Saxon countries. The validity and enforceability of derivative transactions are generally recognized both in Anglo-Saxon and continental countries.
Secondly, the validity and enforceability of netting clauses in credit derivative contracts have been examined, based on the comparative survey of the treatments in Continental and Anglo-Saxon countries. The validity and enforceability of netting contracts are generally recognized in Anglo-Saxon countries whilst continental countries, except for the countries influenced by German law, provide the validity and enforceability of netting clause with respect to the cases where a party of the transaction is a financial institution.
Thirdly, a comparative survey o
n the accounting treatment of credit derivatives and financial guarantee in west European countries and other Anglo-Saxon countries has made. The treatment in International Accounting Standards/ International Financial Reporting Standards is also examined. As credit derivatives have become widely recognized in balance sheet, some accounting standards require recognition of financial guarantee contracts. In this respect, Japanese accounting standards needs for progress.
Fourthly, the result of the survey of tax treatment of credit derivatives in some developed countries shows that there still leaves unpredictable and uncertain elements with respect to the tax treatment of credit derivatives. The tax treatment of credit derivative varies country to country and most of the countries surveyed have no comprehensive provisions concerning this aspect. United Kingdom, however, has relatively clear rules on the tax treatment of credit derivatives.
Finally, the convergence in the treatment of credit derivatives in capital adequacy requirements of credit institution has been achieved due to Basle II. Less
Research Products (12results)