A Study On Accounting Of Derivative Financial Instrument

The birth of derivative financial instruments (DFIs) has caused four Problems in the field of accounting:(1)The impact on the traditional accounting elements theory. It is considered that the definition Problem DFIs caused is hard to be contained in the frameworks of the traditional accounting elements theory.(2)Before the revision of the traditional accounting elements theory, there are theoretical limitations for the accounting recognition of DFIs.(3)The measurement attribute for DFIs is hard to select, and there are disputations for measurement modes.(4)Traditional financial disclosure cannot present the risks of DFIs in time and fully.In fact, the international account fields pay close attention to the questions mentioned above. The more authoritative account organization such as FASB and IASC have taken active measures and discussed the comprehensive application of the derivative financial instruments. Our country has already made use of these instruments in recent years. It is very important for the derivative financial instruments to make an intake of the accounting management framework. These studies will help us to make the most of the action of the derivative financial instruments on the higher degree and in the large area, promote them perfect, meet the needs of Chinese reform and the communication with other country, make full use of the accounting.