IAS 38 and WMR scandal: Difference between pages

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imported>Doug Williamson
(Add criteria. Source: ACCA webpage https://www.accaglobal.com/ca/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/rd.html)
 
imported>Doug Williamson
(Correct spelling.)
 
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International Accounting Standard 38, dealing with intangible assets.
''Foreign exchange reference rates fixing''


Issued by the International Accounting Standards Board.


:"... corporate treasurers were shocked when the FX market rate fixing (WMR) scandal broke in 2014, revealing that they had been paying over the odds for FX for several years due to a market that had been manipulated by traders at different banks, in a similar fashion to the Libor market where a false benchmark imposed extra costs."


The criteria for recognising an asset under IAS 38 include all of:
:''The Treasurer magazine, September/October 2017, p38 - Neill Penney, managing director and global head of trading, Thomson Reuters.''


#The technical '''feasibility''' of completing the intangible asset (so that it will be available for use or sale); and
#'''Intention''' to complete and use or sell the asset; and
#'''Ability''' to use or sell the asset; and
#Existence of a '''market''' or, if to be used internally, the '''usefulness''' of the asset; and
#Availability of '''adequate''' technical, financial, and other '''resources''' to complete the asset.




If any of these criteria is not met, then the expenditure is a cost, and not an asset.
==See also==
*[[Foreign exchange]]
*[[FX Global Code]]
*[[LIBOR]]
*[[WMR]]


 
[[Category:The_business_context]]
== See also ==
[[Category:Ethics]]
* [[Capitalise]
[[Category:Identify_and_assess_risks]]
* [[Expense]]
* [[FRS 102]]
* [[IAS 16]]
* [[Intangible assets]]
* [[International Financial Reporting Standards]]
* [[Recognition]]
* [[Research & development]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Latest revision as of 10:07, 26 February 2020

Foreign exchange reference rates fixing


"... corporate treasurers were shocked when the FX market rate fixing (WMR) scandal broke in 2014, revealing that they had been paying over the odds for FX for several years due to a market that had been manipulated by traders at different banks, in a similar fashion to the Libor market where a false benchmark imposed extra costs."
The Treasurer magazine, September/October 2017, p38 - Neill Penney, managing director and global head of trading, Thomson Reuters.


See also

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