Accounting Treatments Required IAS for Financial Liabilities Term Paper

Accounting Treatments Required IAS for Financial Liabilities - Term Paper Example This is specifically the amortized cost or the fair value. Specific rules often apply to embed the hedging instruments and financial derivatives. IAS number 39 is applicable to monetary securities issued. Nonetheless, in case an issue of the contract of financial guarantee has earlier on stressed openly that it takes into consideration such agreements as a contract of insurance and has applied accounting that applies to insurance agreement; the issuer has an obligation to apply IAS 39 to such contracts of financial security. Accounting by the financial liability holder is not included from the dimension of IAS 39 as well as IFRS 4. Thus paragraphs 10-12 of IAS 8 â€Å"Accounting policies, changes in accounting estimates and errors† will apply. The commitments to financial liabilities fall outside the scope of IAS 39 in case their obligation cannot be fulfilled net a different financial instrument or in cash. In this case, they will not be classified financial liabilities at fair value via loss or profit hence the entity lacks the historical practice of selling the financial liability that came from the commitment after origination. An issuer of a financial liability or commitment to issue a financial liability at an interest rate below the market value is obliged to recognize the liability at its fair value. Successfully, the issuer of the financial liability will re-determine it at a much-increased value which is recognized under the IAS 39. Besides, the value originally realized will be less where relevant, cumulative payback is recognized in line with the IAS 18 (Penman, 2007; p. 35). According to IAS 32 on presentation of financial instruments which outlines the requirements for accounting for the presentation of the instruments, in particular, the grouping of such financial instruments into financial liabilities, equity and financial assets.

Week 3 discussion questions and summary Essay Example | Topics and Well Written Essays - 1000 words

Week 3 discussion questions and summary - Essay Example Strategic planning highlights its importance both for domestic and international markets. Although there are some differences between the strategic planning of the two but they are almost the same. The only major difference is that in an international market a business finds tougher competition and a more radical environment. Brand loyalty is less; customers look for better quality at cheaper rates, hence strategic planning for international market needs more research and critical thinking. Strategic planning should vary country to country it is important for a country to alter its strategic planning according to its customers. In the same way different countries should adopt different strategic planning. Another reason for varying strategic planning is the competition that prevails in the international market. Every firm is competing to be the best hence they keep an eye on the strategies of their competitors. Adaptation is an ongoing process that has been observed in the history and is still carrying on. An adaptation is a process in which every new aspect of a thing is taken up in order to peak its performance. Adaptation is applicable in international market in different scenarios for example the hand knitting method was replaced by the knitting machine that was more effective but a little less in quality at that time. The early adapters took the advantage and later a more advance machine updated the quality as well. Well adaptation can have different results depending on the scenario; diminishing returns can result due to adaptation. A perfect example is when the demand of a product is less and an organization adapts to a better technology resulting in excess production that in turn results in diminishing returns. But its not always this way, Adaptation if done with proper planning and strategy will always give positive results. Adaptation is a very important phase in a business and