All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
UPSC Exam  >  UPSC Questions  >  What are the important accounting standards t... Start Learning for Free
SaveJoin the Discussion on the App
What are the important accounting standards to study for financial instruments in commerce and accountancy?
Clear all your UPSC doubts with EduRev
Most Upvoted Answer
What are the important accounting standards to study for financial ins...
Important Accounting Standards for Financial Instruments in Commerce and Accountancy


1. International Financial Reporting Standards (IFRS 9)

IFRS 9 is a globally recognized accounting standard that provides guidelines for the recognition, measurement, and presentation of financial instruments. It focuses on three key areas:


  • Classification and measurement of financial assets and liabilities

  • Impairment of financial assets

  • Hedge accounting


IFRS 9 aims to provide more accurate and transparent information about financial instruments, allowing users to make informed decisions.


2. Generally Accepted Accounting Principles (GAAP)

GAAP is a set of accounting principles, standards, and procedures followed in the United States. It includes several key standards related to financial instruments:


  • FASB Accounting Standards Codification (ASC) 825: Financial Instruments

  • FASB ASC 815: Derivatives and Hedging

  • FASB ASC 320: Investments - Debt and Equity Securities

  • FASB ASC 310: Receivables


These standards provide guidelines for the recognition, measurement, and presentation of financial instruments under GAAP.


3. Indian Accounting Standards (Ind AS 32 and 109)

Ind AS 32 and 109 are the accounting standards issued by the Institute of Chartered Accountants of India (ICAI) for financial instruments. They are based on IFRS and are applicable to companies in India. The key provisions of these standards include:


  • Ind AS 32: Presentation and Disclosure of Financial Instruments

  • Ind AS 109: Financial Instruments - Recognition and Measurement


These standards provide guidance on the classification, measurement, and presentation of financial instruments in India.


4. Generally Accepted Accounting Principles in Japan (J-GAAP)

J-GAAP is the set of accounting principles followed in Japan. It includes several standards related to financial instruments:


  • Japan Financial Instruments and Exchange Act (FIEA)

  • Accounting Standards for Financial Instruments (ASBJ Statement No. 13)


These standards provide guidelines for the recognition, measurement, and presentation of financial instruments in Japan.


5. International Public Sector Accounting Standards (IPSAS 28)

IPSAS 28 is an accounting standard issued by the International Public Sector Accounting Standards Board (IPSASB). It provides guidance on the accounting for financial instruments in the public sector. The standard covers the classification, measurement, and presentation of financial instruments.


Conclusion

Understanding and applying the relevant accounting standards for financial instruments is essential in commerce and accountancy. The aforementioned standards such as IFRS 9, GAAP, Ind AS, J-GAAP, and IPSAS 28 provide comprehensive guidelines for the recognition, measurement, and presentation of financial instruments. These standards ensure consistency, transparency, and comparability in reporting financial instruments, enabling
Explore Courses for UPSC exam

Top Courses for UPSCView all

Top Courses for UPSC

What are the important accounting standards to study for financial instruments in commerce and accountancy?
Question Description
What are the important accounting standards to study for financial instruments in commerce and accountancy? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What are the important accounting standards to study for financial instruments in commerce and accountancy? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the important accounting standards to study for financial instruments in commerce and accountancy?.
Solutions for What are the important accounting standards to study for financial instruments in commerce and accountancy? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of What are the important accounting standards to study for financial instruments in commerce and accountancy? defined & explained in the simplest way possible. Besides giving the explanation of What are the important accounting standards to study for financial instruments in commerce and accountancy?, a detailed solution for What are the important accounting standards to study for financial instruments in commerce and accountancy? has been provided alongside types of What are the important accounting standards to study for financial instruments in commerce and accountancy? theory, EduRev gives you an ample number of questions to practice What are the important accounting standards to study for financial instruments in commerce and accountancy? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup