An Analysis of Accounting Treatment for Agri-Commodity Derivatives under IFRS
Keywords:
Derivatives, Agri-Commodity derivatives, Recognition, Measurement, DisclosureAbstract
IFRS 7 and 9 have requirement, for recognition, measurement and disclosure of derivatives. Derivatives include futures and options for hedging foreign currency risks, interest rate risk, price risk etc. Derivatives include financial and commodity derivatives, commodity derivatives are of recent origin, they include commodity futures traded in commodity markets. The requirements under IFRS 7 and 9 can be applied to commodity derivatives. The aim of the present study is to codify the requirement, for recognition, measurement and disclosure of commodity derivatives by Agri-business and Agri-process companies. The data were collected from annual reports of sample companies. Research instrument consists of requirements of recognition, measurement and disclosure index which has been formulated as per IFRS . Data were collected by content analysis method and analyzed using descriptive statistics .The results of the study reveals that of the information of Agri-commodity derivatives recognition, measurement, disclosure in the annual reports is very low level.
References
Palash Goswami. (2005). Accounting and Reporting of Derivatives. The Chartered Accountant, Pp-1036
Dr. Vipul. (2003). Accounting for Financial Derivatives : U.S., International and Indian Standards. The Chartered Accountant, Pp- 235
Matloob Ullah Khan, Dr. Ambrish Gupta And Dr. Sadaf Siraj. (2012). Regulation and Accounting Treatment of Future and Option in Indian Derivative Market. International Journal of Scientific and Research Publication. volume 2, Issue 6.
Gunther Gebhardt, Rolf Reichardt, Carten Wittenbrink. (2003). Accounting for Financial Instrument in the Banking industry : Conclusions from a Simulation Model. CFS Working Paper No.2003/21
Patricia Teixeira Lopes. (2007). Accounting for Electricity Derivatives Under 39. Journal of Derivatives & Hedge Funds, volume 13, pp- 233-246
Jiri Strouhal, Carmen G, Bonaci, Dumitru Matis . (2010). Accounting for Derivatives: Hedging or Trading. Wseas Transactions on Business and Economics, Issue 3, Volume 7.
Patricia Teixeira Lopes, & Lucia Lima Rodrigues.(2006). Accounting for Financial Instruments: An Analysis of the Determinants of Disclosure in The Portuguese Stock Excange. FEP Working Papers.
Margeret Woods, & David, E.W. Marginson. (2004). Accounting for Derivatives: An Evaluation of Reporting Practice by UK Banks. European Accounting Review, Volume 13, No 2, 373-390,
Susanna Levina Middelberg. (2011). The Accounting Implication of Commodity Derivatives in the Agricultural Sector. ( Doctoral thesis, Potchefstroom Campus of the North-West University , South Africa)
Kashif Ahmed. (2004). Accounting Treatment for Derivatives Instrument: A Solution for Risk Management Measure. The Pakistan Accountant, pp-36-40. January-February 2004.
Arlette C. Wilson & Norman H. Godwin,.(2006). A Logical Approach To Teaching Accounting For Derivatives. Journal of college Teaching & Learning. Volume 3, Number 7. July 2006
Sumit Bansal. (2004). Commodity Derivatives Accounting. The Chartered Accountant. Pp-311-314. September 2004.
Ira G Kawaller. (2004) . What Analysts Need to Know about Accounting for Derivatives? Financial Analysts Journal. Volume. 60 , No.2 (Mar-Apr.,2004), pp 24-30
Vincent T Papa And Sandra J Peters. (2013). User Perspectives On Financial Instrument Risk Disclosures under International Financial Reporting Standards- Derivatives and Hedging Activities Disclosures (volume2). CFA Institute.
International Accounting Standards Board. August 2005. IFRS 7 Financial Instruments: Disclosures.
International Accounting Standards Board. November 2009. IFRS 9 Financial Instruments. www.iasb.org
Robin Joyce.(2011). IFRS 7 Financial instruments: Disclosure. IFRS workbooks for Accounting Professionals.
