Accounting Process Of Stock Index Futures With New Accounting Standards And Risk Analysis Of The Process

The Ministry of Finance published its 39 Corporate Accounting Standards (CAS) in Feb 15th 2006, and they're effective from Jan 1st 2007. All public companies are required to apply the new accounting standards. Nowadays, the role and position of Chinese stock market is becoming more and more important in national economy. With the development of Chinese stock market and some economic reformations, more and more people pay attention to Stock Index Futures. Under this background, the author focuses on two facets: how to process Stock Index Futures with the new accounting standards, and some underlying risk in the process.Since being introduced in 1980's, Stock Index Futures has become one of the most successful financial derivatives after twenty years' development. Releaseing Stock Index Futures will accelerate the development of Chinese capital market. However, Stock Index Futures puts forward higher request to the accountancy's work of business enterprises and organizations etc. which participate exchanges. Among the 39 new accounting standards, four of them are closely related to the process of Stock Index Futures: the No. 22, the No. 23, the No. 24 and the No. 37 which together form the so called Financial Instrument Accounting Standards (FIAS). We can process Stock Index Futures according to FIAS.Structure of the paper:This paper is divided into eight chapters altogether. The structure and main points are listed as follow:Chapter 1: Prolegonmenon. This chapter mainly introuduces the background to the study, and some domestic and international research about Stock Index Futures and Financial Instrument Accounting Standards, which lays the foundation for later analysis.Chapter 2: The Introduction of Stock Index Futures. The author mainly introduces the definition, characteristics and the functions of Stock Index Futures. Chapter 3: The Accounting Recognition of Stock Index Futures. The accounting recognition is the first step of the accounting process. Stock Index Futures is one of the financial derivatives. Its characteristics make the accounting recognition complicated. The author thinks the accounting recognition of Stock Index Futures is to confirm it as financial property. We can divide the process of Stock Index Futures into three stages to recognise.Chapter 4: The Accounting Measurement of Stock Index Futures. The accounting measurement is the core step of the accounting process. With the development of the economic, there are more and more financial instruments. It is a challenge for original cost which can't match the accounting report users'requirement. In the new accounting standards which issued in 2006, fair value measurement has been used in the accounting calculation. It is not only according with the mainstream of the international accounting development, but also fit to the development of Stock Index Futures.Chapter 5: The Accounting Record of Stock Index Futures. In the new accounting standards, the accounting record is different, on the basis of categories of financial property. Main functions of Stock Index Futures are hedging and arbitrage. So how to record hedging of Stock Index Futures and arbitrage is different with the new accounting standards.Chapter 6: The Accounting Disclosure of Stock Index Futures. Stock Index Futures has some characteristics such as complex structure, quick variation, large volume of trade and coexisting of high risk and high profit. So tightening the information disclosure of Stock Index Futures is put forward.Chapter 7: The Accounting Process of Stock Index Futures Exchange through a Concrete Example. The author analyses the accounting process of Stock Index Futures exchange through two concrete examples, hedging of Stock Index Futures and arbitrage.Chapter 8: Risk Analysis of Stock Index Futures'Accounting Process. The author analyses essential risk of Stock Index Futures, and risk which participant enterprises must face in the accounting process, because of the practical situation of Chinese market, and limit of Accounting Standards.Contribution of this paper:1.This paper systemically studies how to process Stock Index Futures with new accounting standards.2.The author analyses Risk in Stock Index Futures'accounting process, in order to caution business enterprises which participate Stock Index Futures exchanges.