Open Journal Systems

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)


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.


Financial instruments; Accounting treatment; Other comprehensive income

Full Text:



Beaver W H. Financial Reporting: An Accounting Revolution (3rd Ed.). Englewood Cliffs, NJ: Prentice Hall,1998.

Ohlson J A. On Transitory Earnings [J]. Review of Accounting Studies, 1999, 4(3-4):145-162.

Chambers D, Linsmeier T J, Shakespeare C, Sougiannis T. An Evaluation of SFAS No. 130 Comprehensive Income Disclosures [J]. Review of Accounting Studies, 2007, 12(4):557-593.

Liu J, Stambaugh R F, Yuan Y. Size and value in China [J]. Journal of Financial Economics, 2019, 134(1):48-69.

He H, Lin Z. Analyst Following, Information Environment and Value Relevance of Comprehensive Income: Evidence from China [J]. Asia-Pacific Journal of Financial Studies, 2015, 44(5):688-720.

Khan S, Bradbury M E, Courtenay S. Value Relevance of Comprehensive Income [J]. Australian Accounting Review, 2018, 28(2):279-287.

Guo Y Y, Lu S Q, Ronen J, Ye J F. Equity Financial Assets: A Tool for Earnings Management—A Case Study of a Chinese Corporation [J]. ABACUS, 2019, 55(1): 180-204.

Kvifte S S. Revisiting the Concepts: Time to Challenge the Asset-Liability View [J]. Australian Accounting Review, 2008, 18(1):81-92.



  • There are currently no refbacks.
Copyright © 2020 艳 王 Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
  • :+65-98550280 QQ:2249355960