The Studies Of Derivatives Accounting

Since 80s in the 20th century, the continuous development in financial innovation has changed the contents and rules of the economy in the world in a certain sense. The international business with transnational corporations as the main have been developed progressively, The international capital markets have been developed rapidly. Financial products and derivatives play a role in boosting, they have also been rapid developed in turn, at the same time, financial products have became more and more fruitful. Derivative financial instruments have became an indispensable component in modern financial markets. However, the financial instruments have some notable features such as diversity, complexity, diversity of trading activities, operating correctly can help investors to avoid risks or bring substantial returns on investment and favorable profit; operating incorrectly will bring huge losses or even bankruptcy to investors. The emergence, development and wide application of derivative financial instruments not only brings in a huge impact on financial markets, but also proposes a new research topics for accounting. The topics is how to use accounting to describe the risks and the role of hedge of the process of transaction of derivative financial instruments. Derivative financial instruments affect the system of traditional financial accounting reporting seriously. As a frontier area, the derivatives accounting is widespread concerned and researched for domestic and abroad. And it is considered as one of the top ten accounting problems in the 21 century.My article introduces the meanings and characteristics of derivative financial instruments firstly, expounds the relevant regulations on the accounting recognition, measurement, disclosure of derivative financial instruments, then takes the accounting recognition, measurement and disclosure as the main line, reveals the problems of accounting treatment of derivatives of our current enterprise,for example, standards of further confirm are not uniform, the profits are not reflected under the fair value, disclosure of financial statements and the contents outside the financial statements is inadequate. Then the article finds some reasons according analyzing, and proposes some solutions finally. The solutions include that standards of further confirm should be uniformed, strengthen the supervision and disclosure of the fair value measured derivative financial instruments, improve the structure of financial statements and method of compilation. The purpose of my writing hopes that accounting can reflect the business of derivative financial instruments better.