Derivatives: Were 1994 disclosures adequate?

SFAS 119 requires disclosures concerning: 1. the purposes for holding derivatives, 2. the credit and market risks involved with derivatives, 3. quantitative information about end-of-period derivative values, deferred gains and losses, and cash requirements, and 4. accounting policies for derivatives. The results of a Coopers & Lybrand LLP Foundation survey of derivative disclosures using the 1994 year-end financial statements of 78 end users indicated that companies generally complied with the disclosure requirements of SFAS 119. SFAS 119 was moderately effective in outlining disclosure requirements from which the reader of the financial statements could make informed judgments on whether derivatives could have a major impact on a company's results.