The Financial Accounting Standards Board has agreed to issue a standard that would require more complete disclosures of information about derivative financial instruments, such as forward, futures, swap and option contracts. The standard will apply to all business enterprises and not-for-profit organizations.
Based on a proposal issued by the board in April, the standard is expected to be published in early October and will be effective for calendar-year 1994 financial statements, with a one-year delay for entities with less than $150 million in assets.
The statement will expand on Financial Accounting Standard 105, which deals with off-balance-sheet risk, and FAS 107, which requires disclosures about the fair value of financial instruments. It will require disclosures about the amounts, nature and terms of derivatives not under FAS 105.
