Accounting for Financial Instruments: Difficulties with Fair Value Measurement

Abstract

Nowadays financial instruments are used extensively not only by financial institutions but also by industrial and service entities. However, the complete guidance for those instruments' accounting is yet to be developed. Under those circumstances, reporting entities encounter issues in regards to correct measurement of the value of those instruments. This paper identifies critical issues in this process by analyzing financial statements of an entity and gathering data from executives' of reporting entities operating in the Republic of Armenia.