Evolvement of Derivatives Accounting

Abstract

The paper introduces the accounting of derivatives. It describes the different measures for accounting of derivatives under the different accounting standards issued by FASB. In the past two decades, there is growth in the use of derivatives by firms. As a result, there have been many changes in the accounting and disclosure requirements for derivatives. The study provides answers to many fundamental research questions on the different measures of derivatives accounting along with large functions of accounting information available for disclosure and accounting of derivatives.