A Fair Value and Hedge Activities
Business & Financial Affairs
Research Article
Dinh and Gong, J Bus & Fin Aff 2013, 2:1 http://dx.doi.org/10.4172/2167-0234.1000108
Open Access
A Fair Value and Hedge Activities
Doan Van Dinh1* and Guangming Gong2
1 2
College of Economics and Trade Management of Hunan University, China and Faculty of Finance and Banking of the Industrial University of Ho Chi Minh City, Vietnam Business school Hunan University in China
Abstract
This article, author consider the fair value of financial instruments whether it is appropriate for economic development and the volatility of the stock market or not through investors’ financial statement analysis and to help the Managers, Investors and someone else understand about reasonable economic information in financial statements. Because, Use of fair Value method plays an important role in measurement of financial instruments and help entity can decrease risk financing. However, Vietnam entities have not applied fair value method yet to revalue financial assets. So value financial assets in financial statements are not exact. This problem impacts on Vietnam financial market for long time. This article shall consider the fair value and historical cost methods measure financial instruments on the stock market through economic transactions to find out the difference of value financial assets, when using two these method to revalue them. The usage of fair value measurement accounting is a necessary factor for the development of Vietnamese stock market. Currently, Vietnamese accounting is using a book method for financial instruments; besides that the fair value accounting has not been thoroughly applied by entities under the standards of international financial instruments accounting.
Keywords: Fair value; Historical cost; Financial statements; Financial instruments; Financial statements Introduction
When financial assets are transacted by firms, the value of financial assets will be varied from the market price.
Research Article
Dinh and Gong, J Bus & Fin Aff 2013, 2:1 http://dx.doi.org/10.4172/2167-0234.1000108
Open Access
A Fair Value and Hedge Activities
Doan Van Dinh1* and Guangming Gong2
1 2
College of Economics and Trade Management of Hunan University, China and Faculty of Finance and Banking of the Industrial University of Ho Chi Minh City, Vietnam Business school Hunan University in China
Abstract
This article, author consider the fair value of financial instruments whether it is appropriate for economic development and the volatility of the stock market or not through investors’ financial statement analysis and to help the Managers, Investors and someone else understand about reasonable economic information in financial statements. Because, Use of fair Value method plays an important role in measurement of financial instruments and help entity can decrease risk financing. However, Vietnam entities have not applied fair value method yet to revalue financial assets. So value financial assets in financial statements are not exact. This problem impacts on Vietnam financial market for long time. This article shall consider the fair value and historical cost methods measure financial instruments on the stock market through economic transactions to find out the difference of value financial assets, when using two these method to revalue them. The usage of fair value measurement accounting is a necessary factor for the development of Vietnamese stock market. Currently, Vietnamese accounting is using a book method for financial instruments; besides that the fair value accounting has not been thoroughly applied by entities under the standards of international financial instruments accounting.
Keywords: Fair value; Historical cost; Financial statements; Financial instruments; Financial statements Introduction
When financial assets are transacted by firms, the value of financial assets will be varied from the market price.
References: Citation: Dinh DV, Gong G (2013) A Fair Value and Hedge Activities. J Bus & Fin Aff 2:108. doi:10.4172/2167-0234.1000108 Page 11 of 11 Citation: Dinh DV, Gong G (2013) A Fair Value and Hedge Activities. J Bus & Fin Aff 2:108. doi:10.4172/2167-0234.1000108 Submit your manuscript at: http://www.omicsonline.org/submission