Statement on accounting disclosure about derivative financial instruments financial economists roundtable

Edward I. Airman; George J. Benston; Gerald O. Bierwag; Marshall E. Blume; Andrew Chen; Franklin R. Edwards; Robert A. Eisenbeis; Martin J. Gruber; Nils H. Hakansson; Michael Jensen; Edward J. Kane; George G. Kaufman; Alan Kraus; Hayne E. Leland; Haim Levy; Robert H. Litzenberger; Harry Markowitz; Robert C. Merton; Franco Modigliani; Stewart C. Myers; Stephen A. Ross; Mark Rubinstein; Eduardo S. Schwartz; Kenneth E. Scott; William F. Sharpe; Seymour Smidt; Hans R. Stoll; Seha M. Tinic; James C. Van Home; Roman L. Weil; Richard R. West; J. Fred Weston

doi:10.3905/jod.1996.407948

Statement on accounting disclosure about derivative financial instruments financial economists roundtable

Edward I. Airman, George J. Benston, Gerald O. Bierwag, Marshall E. Blume, Andrew Chen, Franklin R. Edwards, Robert A. Eisenbeis, Martin J. Gruber, Nils H. Hakansson, Michael Jensen, Edward J. Kane, George G. Kaufman, Alan Kraus, Hayne E. Leland, Haim Levy, Robert H. Litzenberger, Harry Markowitz, Robert C. Merton, Franco Modigliani, Stewart C. MyersStephen A. Ross, Mark Rubinstein, Eduardo S. Schwartz, Kenneth E. Scott, William F. Sharpe, Seymour Smidt, Hans R. Stoll, Seha M. Tinic, James C. Van Home, Roman L. Weil, Richard R. West, J. Fred Weston

BA Business Department

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Abstract

The Financial Economists Roundtable (PER) is a group of senior financial economists who meet annually to discuss current policy questions relating to investments, corporate finance, financial institutions, and financial markets. The FER issues statements from time to time about specific topics of current importance to increase the awareness and understanding of public policymakers, the financial economics profession, the communications media, and the general public. At its 1995 meeting, the FER examined reporting requirements for financial assets and liabilities as well as derivatives. Its statement here reflects the consensus view of the majority of members attending. In brief, it recommends that: 1. All financial assets and liabilities, and derivatives used to hedge them, should be recorded at "fair value" i.e., should be marked to market. 2. Profits and losses on derivatives used to hedge nonfinancial assets or future expenditures should be recognized in the same period that the specified event or hedged item is taken into income or expense. 3. External reporting must be supported by an adequate risk management internal control system.

Original language	English
Pages (from-to)	72-74
Number of pages	3
Journal	Journal of Derivatives
Volume	3
Issue number	3
DOIs	https://doi.org/10.3905/jod.1996.407948
State	Published - 1 Mar 1996

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Airman, E. I., Benston, G. J., Bierwag, G. O., Blume, M. E., Chen, A., Edwards, F. R., Eisenbeis, R. A., Gruber, M. J., Hakansson, N. H., Jensen, M., Kane, E. J., Kaufman, G. G., Kraus, A., Leland, H. E., Levy, H., Litzenberger, R. H., Markowitz, H., Merton, R. C., Modigliani, F., ... Weston, J. F. (1996). Statement on accounting disclosure about derivative financial instruments financial economists roundtable. Journal of Derivatives, 3(3), 72-74. https://doi.org/10.3905/jod.1996.407948

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title = "Statement on accounting disclosure about derivative financial instruments financial economists roundtable",

abstract = "The Financial Economists Roundtable (PER) is a group of senior financial economists who meet annually to discuss current policy questions relating to investments, corporate finance, financial institutions, and financial markets. The FER issues statements from time to time about specific topics of current importance to increase the awareness and understanding of public policymakers, the financial economics profession, the communications media, and the general public. At its 1995 meeting, the FER examined reporting requirements for financial assets and liabilities as well as derivatives. Its statement here reflects the consensus view of the majority of members attending. In brief, it recommends that: 1. All financial assets and liabilities, and derivatives used to hedge them, should be recorded at {"}fair value{"} i.e., should be marked to market. 2. Profits and losses on derivatives used to hedge nonfinancial assets or future expenditures should be recognized in the same period that the specified event or hedged item is taken into income or expense. 3. External reporting must be supported by an adequate risk management internal control system.",

author = "Airman, {Edward I.} and Benston, {George J.} and Bierwag, {Gerald O.} and Blume, {Marshall E.} and Andrew Chen and Edwards, {Franklin R.} and Eisenbeis, {Robert A.} and Gruber, {Martin J.} and Hakansson, {Nils H.} and Michael Jensen and Kane, {Edward J.} and Kaufman, {George G.} and Alan Kraus and Leland, {Hayne E.} and Haim Levy and Litzenberger, {Robert H.} and Harry Markowitz and Merton, {Robert C.} and Franco Modigliani and Myers, {Stewart C.} and Ross, {Stephen A.} and Mark Rubinstein and Schwartz, {Eduardo S.} and Scott, {Kenneth E.} and Sharpe, {William F.} and Seymour Smidt and Stoll, {Hans R.} and Tinic, {Seha M.} and {Van Home}, {James C.} and Weil, {Roman L.} and West, {Richard R.} and Weston, {J. Fred}",

year = "1996",

month = mar,

day = "1",

doi = "10.3905/jod.1996.407948",

language = "אנגלית",

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journal = "Journal of Derivatives",

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Airman, EI, Benston, GJ, Bierwag, GO, Blume, ME, Chen, A, Edwards, FR, Eisenbeis, RA, Gruber, MJ, Hakansson, NH, Jensen, M, Kane, EJ, Kaufman, GG, Kraus, A, Leland, HE, Levy, H, Litzenberger, RH, Markowitz, H, Merton, RC, Modigliani, F, Myers, SC, Ross, SA, Rubinstein, M, Schwartz, ES, Scott, KE, Sharpe, WF, Smidt, S, Stoll, HR, Tinic, SM, Van Home, JC, Weil, RL, West, RR & Weston, JF 1996, 'Statement on accounting disclosure about derivative financial instruments financial economists roundtable', Journal of Derivatives, vol. 3, no. 3, pp. 72-74. https://doi.org/10.3905/jod.1996.407948

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T1 - Statement on accounting disclosure about derivative financial instruments financial economists roundtable

AU - Airman, Edward I.

AU - Benston, George J.

AU - Bierwag, Gerald O.

AU - Blume, Marshall E.

AU - Chen, Andrew

AU - Edwards, Franklin R.

AU - Eisenbeis, Robert A.

AU - Gruber, Martin J.

AU - Hakansson, Nils H.

AU - Jensen, Michael

AU - Kane, Edward J.

AU - Kaufman, George G.

AU - Kraus, Alan

AU - Leland, Hayne E.

AU - Levy, Haim

AU - Litzenberger, Robert H.

AU - Markowitz, Harry

AU - Merton, Robert C.

AU - Modigliani, Franco

AU - Myers, Stewart C.

AU - Ross, Stephen A.

AU - Rubinstein, Mark

AU - Schwartz, Eduardo S.

AU - Scott, Kenneth E.

AU - Sharpe, William F.

AU - Smidt, Seymour

AU - Stoll, Hans R.

AU - Tinic, Seha M.

AU - Van Home, James C.

AU - Weil, Roman L.

AU - West, Richard R.

AU - Weston, J. Fred

PY - 1996/3/1

Y1 - 1996/3/1

N2 - The Financial Economists Roundtable (PER) is a group of senior financial economists who meet annually to discuss current policy questions relating to investments, corporate finance, financial institutions, and financial markets. The FER issues statements from time to time about specific topics of current importance to increase the awareness and understanding of public policymakers, the financial economics profession, the communications media, and the general public. At its 1995 meeting, the FER examined reporting requirements for financial assets and liabilities as well as derivatives. Its statement here reflects the consensus view of the majority of members attending. In brief, it recommends that: 1. All financial assets and liabilities, and derivatives used to hedge them, should be recorded at "fair value" i.e., should be marked to market. 2. Profits and losses on derivatives used to hedge nonfinancial assets or future expenditures should be recognized in the same period that the specified event or hedged item is taken into income or expense. 3. External reporting must be supported by an adequate risk management internal control system.

AB - The Financial Economists Roundtable (PER) is a group of senior financial economists who meet annually to discuss current policy questions relating to investments, corporate finance, financial institutions, and financial markets. The FER issues statements from time to time about specific topics of current importance to increase the awareness and understanding of public policymakers, the financial economics profession, the communications media, and the general public. At its 1995 meeting, the FER examined reporting requirements for financial assets and liabilities as well as derivatives. Its statement here reflects the consensus view of the majority of members attending. In brief, it recommends that: 1. All financial assets and liabilities, and derivatives used to hedge them, should be recorded at "fair value" i.e., should be marked to market. 2. Profits and losses on derivatives used to hedge nonfinancial assets or future expenditures should be recognized in the same period that the specified event or hedged item is taken into income or expense. 3. External reporting must be supported by an adequate risk management internal control system.

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Statement on accounting disclosure about derivative financial instruments financial economists roundtable

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