IFRS for Derivative Financial Instruments: Disclosure Level and Uniformity

Arjun Gope, Gautam Mitra


Increasing use of derivative financial instruments opens up new horizons of accounting studies altogether. As we agree with the fact that “accounting is the language of business,” then business enterprises round the world should have a common language to report the results of business and trade to their international stakeholders. IFRS-adopted countries follow different accounting standards like as IAS 32, IAS 39, IFRS 7 and IFRS 13 for reporting and disclosing the derivative transactions. A few countries are likely to adopt the IFRS for DFI in the near future. The findings of the study suggest that although the IFRS-adopted companies’ reporting and disclosure level is not more than the level of 75% of the standard but the companies are uniformly reporting and disclosing DFI among the countries


Stakeholder, IFRS, Derivative, Disclosure.

Full Text:



Bhattacharyya A. Indian Accounting Standards: Practices, Comparisons, and Interpretations. New Delhi: Tata McGraw-Hill Education, 2009.

Bischof J. The effects of IFRS 7 adoption on bank disclosure in Europe. Accounting in Europe 2009: 167-94.

Chen H, Tang Q, Jiang Y et al. We find that the majority of accounting quality indicators improved after IFRS adoption in accounting quality: Evidence from the European Union. Draft. 2009.

Djatej A, Gao G, Sarikas R et al. An investigation of the comparative impact of degree of implementation of IFRS upon the public and private information quality of Asia Pacific Country firms. International Business & Economics Research Journal 2010; 9(3).

Glaulier M, Underdown B. Accounting Theory and Practice. 7th ed. London: FT-Prentice Hall, 2001.

Hassan O, Marston C. Disclosure measurement in the empirical accounting literature-A review article. 2010. Available from: http:// ssrn.com/abstract=1640598. Accessed on: Jun 5, 2015.

Hossain M. The extent of disclosure in annual reports of banking. European Journal of Scientific Research 2008; 23(4): 659-80.

Htay SNN, Rashid HM, Adnan MA et al. Corporate governance and risk management information disclosure in Malaysian listed banks: Panel data analysis. International Review of Business Research Papers 2011; 7(4): 159-76.

Iatridis G. IFRS adoption and financial statement effects: The UK case. International Research Journal of Finance and Economics 2010; 38: 165-72.

Ikpefan OA, Akande AO. International financial reporting standard (IFRS): Benefits, obstacles and intrigues for implementation in Nigeria. Business Intelligence Journal 2012; 5(2): 299-307.

Jankensgård H, Hoffmann K, Rahmat D. Derivative usage, risk disclosure, and firm value. Journal of Accounting and Finance 2014; 14(5): 159-74.

Jones MJ, Shoemaker PA. Accounting narrative: A review of empirical studies of content and readability. Journal of Accounting Literature 1994; 13: 142-84.

Kingsley OO, Gina O, Vivian O. A comparative study of accounting standards in Nigeria, United Kingdom and United States of America. IOSR Journal of Economics and Finance 2014; 3(2): 1-7.

Kothari C. Research methodology methods and techniques. New Age International Publishers, 2004.

Lipunga AM. Risk disclosure practices of Malawian commercial banks. Journal of Contemporary Issues in Business Research 2014; 3(3): 154-67.

Lopes PT, Rodrigues LL. Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese stock exchange. The International Journal of Accounting 2007; 42: 25-56.

Malaquias RF, Lemes S. Disclosure of financial instruments according to international accounting standards: Empirical evidence from Brazilian companies. Brazilian Business Review 2013; 10(3): 82-107.

Powal S. Accounting Theory: An Introduction. 8th ed. New Delhi, India: Tata McGraw Hill Publishing Co. Ltd., 2006.

Pricewaterhouse Coopers LLP. Ready for take-off? 2004. Available from: www.pwc.com/ifrs. Accessed on: May 10, 2015.

Stulz MR. Should we fear derivatives? Journal of Economic Perspectives 2004: 173-92.

Swain A. Text Book of Research Methodology. 2nd ed. New Delhi: Kalyani Publishers, 2008.

Tendeloo B, Vanstraelen A. Earnings management under German GAAP versus IFRS. European Accounting Review 2005; 14 (1): 155-80.

Vashishtha A, Kumar S. Development of financial derivatives market in India-A case. International Research Journal of Finance and Economics 2010; 37: 15-29.


  • There are currently no refbacks.