The purpose of this study is to examine the effect of the Statements of Financial Accounting Standards No. 34 and No. 36 on the value-relevance and foreign exchange risk of financial instruments for the banking and insurance firms in Taiwan. The results of study show that the implementation of the fair value accounting standards enhances the value-relevance of accounting reports. And, the new financial accounting standards could reveal the level of risk exposed for the derivative foreign exchange assets and liabilities of firms.