Research On Accounting Measurement Model Of Derivatives Which Listed Commercial Bank In China

From the 70s of last century,the risk in financial markets escalated with the end of fixed exchange rate system under Bretton Woods system, Set off a worldwide financial liberalization and the wave of financial innovation, at the same time Financial markets is in the booming development, and an unprecedented fierce securities prices, interest rates and exchange rate fluctuations is coming. At this time, western developed countries introduced a floating exchange rate system, then the area in the world more and more countries are also gradually gave up the control of interest rates. As a result of double floating in exchange rates and interest rates,then,the derivative financial instruments had emerged. The so-called derivative financial instruments are financial instruments which derive their value from the value of some other financial instrument or variable.Quantities of derivatives emerged in the international financial market,although it could enrich financial products in the market,still the traditional accounting theory had a tremendous impact.The formation of derivatives had comprehensive challenge in the accounting elements of recognition,measurement and disclosure,of course,accounting measurement model was included.In this paper,it takes the accounting measurement model of the financial derivatives as research object,begins with the concept,the fundamental characteristics and types of derivatives and so on,then investigates and analysis the practice in listed commercial banks in Shanghai&Shenzhen Stock Exchange A-share Practice and application,Finally,from the perspective of practice and reality put forward a viewpoint that most financial derivatives should be measured at their fair value,only a few of them should be measured at historical cost. Further more,the measurement for derivatives includes initial measurement and subsequent measurement,fair value as the only accounting measurement attribute of the derivatives will be brought into effect eventually.Meanwhile,the theory and practice of accounting measurement will get promoted and it will help the formulation of China's accounting standards and provide forward momentum for development of accounting theory.Eventually it will also be more conducive to China have been listed or are seeking financial institutions listed on the reference template.