Study of the Influence of Reporting Format on Commercial Banks

摘要

The difference of accounting treatments dealing with the fair-value gains or losses between US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) raises questions because they are either recognized or disclosed in the financial reporting.By reporting provisions on financial instruments and derivatives,analyses the empirical evidence of differences between recognition and disclosure,this article shows that investors and analysts'valuation of banks have been strongly influenced by the accounting measures,which will produce unfair comparisons within the industry and mislead investors.Through discussing the implication to financial reporting standard setters,the authors conclude that the accounting standard setters should establish a uniform rule to recognize the fair-value gains and/or losses and bring the offbalance sheet trading back to on-balance sheet.