The purpose of this thesis is to demonstrate the need for enhanced accounting methodology for
financial instruments which are traded in the global financial markets. The thesis proposes an
accounting framework within which the value-at-risk of financial instruments can be disclosed in
the financial statements of enterprises.
The thesis considers accounting developments in recent years and analyses the latest proposals
suggested by international accounting bodies. It furthermore contemplates the requirements of
the Bank for International Settlements in terms of capital adequacy and value-at-risk requirements.
In order to provide a meaningful analysis of the subject matter of financial instruments, the
various market risks pertaining to the accounting of financial instruments are discussed and
considered in terms of their application to the underlying bu. siness of the enterprise. -
Extensive analysis is done of valuation techniques and the mathematical concepts of value-atrisk.
In this regard the pioneering works of professor Philippe Jorion of the University of California
is used to illustrate the application of value-at-risk. The objective of this comprehensive analysis
of value-at-risk is to suggest a meaningful method to account for risk exposures in financial
instruments and ensure greater transparency in terms of disclosure. In this regard the thesis
follows the guidelines proposed by the International Accounting Standards Committee in terms of
recognition (definitions}, measurement (valuation}, presentation (classification} and disclosure
(terms, conditions and accounting policies} of financial instruments.
Consideration is also given to global accounting harmonisation and a number of accounting
concerns which are presently unresolved. In this regard certain hedge issues as well as the
differences between accrual accounting and fair value accounting are considered. Disclosure
requirements are analysed in detail, especially in respect of value-at-risk accounting.
Finally, the thesis illustrates the significant growth of products and instruments in the financial
markets and the severe financial impact it has in terms of global capital and global financial
losses. / Financial Accounting / DCom (Applied Accountancy)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/17536 |
| Date | 06 1900 |
| Creators | Mulder, Ignatius Jacobus |
| Contributors | Becker, H. M. R. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 1 online resource (vi, 245 leaves) |
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