Research On Disclosure Of Accounting Information Of Swap In China's Commercial Banks

As the management of interest rate and exchange rate risks,swaps have a very wide use in foreign countries at locking yield,avoiding effectively interest rates and exchange rate risk,adjusting the structure of assets and liabilities,and expand financing channels to reduce financing costs.Comparatively,market of swap has not perfected in the current domestic,and swap is mostly used to control the position of commercial banks.However,strengthening the knowledge about swap transactions and the concept of avoiding risk,many companies will use swap as a major business mode,and information of swap will also be a focus on disclosure of corporate information in the future.At present,there were no specific guidelines for commercial banks in the disclosure of the information of swap.The domestic accounting standards about the swap transactions are only the normative theories.I believe that the article can give commercial banks some references.I hope that this study can provide certain guide for disclosure of swap transactions.In the paper,I build a theoretical framework,including the disclosure of information is related to the accounting recognition to accounting measurement of assets and liabilities,accounting measurement of relevant profit and loss,as well as the disclosure of risk information,etc.In this paper,selecting Bank of China as specific case,firstly I introduced the disclosure of swap transactions of the bank,secondly I indicated to problems and deficiencies of the disclosure above.Finally put forward my own recommendations including:commercial banks should disclose more details of swap tractions.Even if lacking of clear guidelines or requirements,commercial banks should also take precautions,to see this inevitable trend.With this understanding of the concept,it is necessary to know the disclosure of information is related to the accounting recognition to accounting measurement of assets and liabilities,accounting measurement of relevant profit and loss,as well as the disclosure of risk information,etc.There are many practical problems need to be considered and discussed.With my own experience,I propose to my points that the accounting recognition of swaps should be the valuation date;Accordance with the fair value,the establishment of valuation institutions or departments are important to avoid arbitrariness;The disclosure of gains and losses of swaps should be harmonized and standardized;The disclosure of cross-currency interest rate swap should be adjusted to the interest rates products;The disclosure of risk information should be a combination of qualitative and quantitative.