Accounting Study On The Derivative Financial Instrument

The development of derivative instrument has brought deeply efffect on the financial market. The traditional accounting is now encountering with enormons challenges when the wave of financial reformation wept around the world. Derivative instrument is a new financial method that still hasn' appropriate accounting procession system that could be used for. Especially in the late 20th century, the traditional accounting theories and principles urgently needed to be renewed when facing with the reformation of traditional financial market and the development of derivative financial instruments.In order to establish a sound regulation and promote the reformation of the financial markets, the research on the subject of derivative financial instruments has become an urgent and entrepreneurial work for us. This text gives some shallow research on a series of problems that will be encountered with in the application of derivative financial instruments. Firstly, I gave some definition to the basic accounting theory of derivative financial instruments in the beginning, and bring forward the meaning of probing derivative instruments. Secondly, 1 put forward my personal opinion on the base of the comparison between derivative financial account ing and traditional accounting in accounting recognition and measurement. Thirdly, considering the problem of accounting procession, I collected some foreign information of recent, years and listed some typical cases about it. I wish it could provide some reference to the similar accounting transaction. 1 also table some proposals on the exposure of derivative instruments in financial reports.