INTRODUCTION Derivatives accounting has always created debates and discussions among public accountants regarding the measurement bases for derivatives used in hedging activities, to disclosure issues and related profits and losses (Benston, 1997) . The goal of controlling risk in financial markets has led to various accounting standards that address financial instruments and derivatives used in most industries. The need to move from historical cost basis to fair value accounting has been the main focus of international accounting standards in the context of financial instruments accounting (Lopes & Rodrigues, 2004). BACKGROUND OF IAS 39 In 1989, the International Accounting Standards Committee (IASC) and the Canadian Institute of Chartered Accountants (CICA) established a joint agreement to develop broad standards to address the disclosure, measurement and recognition of financial instruments. In September 1991 the IASC distributed for comment E40, Financial Instruments (an exposure draft), which was subsequently reopened in January 1994 as E48, Financial Instruments. Following several debates, the bodies separated the project into two parts: the presentation and disclosure of financial instruments and the accounting of financial instruments including hedge accounting as another part; in June 1995 one party gave rise to IAS 32 Financial instruments: Disclosure and presentation in financial statements. The second part was improved in the discussion paper “Accounting for Financial Assets and Liabilities” in March 1997, addressing issues relating to the recognition, derecognition, measurement and accounting of hedging transactions of financial instruments. E62, Financial Instrument: Recognition and Measurement, was published by the IASC in June 1998, led to IAS 39 in December 1998, as......half of the document......incurred, development costs are capitalized. Non-current liabilities are recorded on the basis of amortized cost. The difference between the historical cost and the redemption value is amortized using the effective interest method. The reason for the conceptual framework is harmonization, without conceptual framework there would be no meaning for the financial statement. Recently, US GAAP and IFRS have reached an agreement that the US government may adopt IFRS around 2015; some international companies operating in the United States will apply both US GAAP and IFRS, and if the results are satisfactory, the US government will adopt US GAAP. As of April 2014, discussions based on the IASB concept are ongoing on some aspects of the conceptual framework such as the definition of assets and liabilities, the revision of some objectives and the distinction between profits, losses and comprehensive profit