Identifying the Challenges of Implementing International Derivatives Accounting Standards: Emphasizing the disclosure requirements
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Identifying the Challenges of Implementing International Derivatives Accounting Standards: Emphasizing the disclosure requirements

Document Type : Original Article

Authors
razieh mahavarpour 1
shahnaz mashayekh 2
ali rahmani 3
1 lecturer, Department of Accounting, Faculty of Social and Economic, piam noor University, Tehran, Iran.
2 Associate Professorو Department of Accounting, Faculty of Social and Economic, Al-Zahra University,Tehran, Iran.
3 Prof., Department of Accounting, Faculty of Social and Economic, Al-Zahra University, Tehran, Iran.
10.22034/jse.2020.11348.1531
Abstract
Given the important role of financial derivatives in the world economy and experience of the necessity of applying high quality and accepted financial reporting standards especially financial instruments standards, the purpose of this study was to identify information disclosure challenges related to derivative instruments in Iranian reporting environment And within the framework of International Financial Reporting Standards.
Method: This study identifies and presents the challenges of disclosing derivative securities and hedge accounting information in accordance with IFRS 7 and IFRS 9, using the qualitative content analysis method of analyzing the data obtained from interviews with 4 experts of auditing, accounting and capital markets of Iran.
The identified challenges in identifying, measuring and disclosing derivative tools lead to challenging practice requirements. The findings show that the complexity and difficulty of implementing disclosure requirements in practice, along with a lack of incentives to comply with disclosure requirements and lack of transparency in financial reporting, along with the weakness of executive reporting requirements in the Iranian reporting environment, will have negative impact on effectiveness of standard and derivative instruments reporting. resulting in a lack of sufficient, comparable, useful and reliable information in this area.
Standard setters and professional accounting and auditing communities should be aware of challenges of accounting and reporting of derivative securities and prepare suitable infrastructures for financial reporting of these securities in Iranian financial reporting environment.
Keywords
Derivative Bonds
IFRS 7
disclosure
hedge accounting
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Quarterly Journal of Securities Exchange
Volume 14, Issue 55
Autumn 2021
Pages 160-186