How to Recognize and Measure Compound Financial Instruments?

Wang Yan(School of Accounting, Guangdong University of Foreign Studies)
He Zhuqian(School of Accounting, Guangdong University of Finance & Economics)
Yan Shijia(College of Management, Zhongkai University of Agriculture and Engineering)

Abstract

Basing on the Xiaomi case, this paper discusses the most appropriate accounting treatment of compound financial instruments under the framework of International Financial Reporting Standards (IFRS) and how other comprehensive income (OCI) plays important role in it. Overall, this paper provides some references for policymaker to standardize financial instruments standard.

Keywords

Financial instruments; Accounting treatment; Other comprehensive income

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DOI: http://dx.doi.org/10.26549/jfr.v4i1.3582