The Study On The Issues Of Accounting Standards For Financial Instruments Of China

Nearly years, domestic financial reforms are accelerating, and capital market is experiencing fast development, which creates good atmosphere for the development of financial instruments. And with the development of globalization of economy, domestic enterprises involve more in the international market. In order to deal with international competition, and to elude risks, the demands for financial instruments are increasingly manifold. Financial instruments can be a way to get profit or avoid risk to domestic enterprises, but also contain some unknown huge risk.In Feb.15.2006 ministry of finance launch the《Accounting Standards for Business Enterprises No.22—Recognition and Measurement of Financial Instruments》and another three accounting standards about financial instruments, symbolized another crucial step in the construction of Chinese accounting standards for financial instruments. To execute accounting standards for financial instruments not only means change of accounting standards'items, but also to be involved in the whole accounting process through recognition and measurement to disclosure and presentation of Financial Instruments. That will impact traditional accounting principles, recognition standards and measurement method, and will bring some changes in business accounting. Well, what differences would be found, with comparing new accounting standards for financial instruments and old ones.Which problems enterprise might encounter when they execute new accounting standards for financial instruments. Enterprise would how to reply to reflect the risks containing in financial instruments and the influence on financial status and business achievements, and how to improve the abilities to resist risks and to protect investors'rights and interests.Accounting is to reveal the essence of economic activities, so it can boost the development of economic business by the formalization of accounting calculation. Therefore the article is avail to understand the financial status of business enterprises and the risk of financial derivative business, and to benefit the development of enterprises. The accounting standards of financial instruments are not only the urging by the developing of domestic financial industry, but also the dispensable part of the accounting standards system. Financial instruments accounting is a puzzle globally, so my endeavor is avail to the readers to have some understanding of this issue. This paper just to provide an opportunity for or enlighten the thinking of this issue, and maybe this paper can arouse more concerns on this issue, and then let the research go further. And also, I hope my study of this issue in this paper, which could offer some use for the transition practice of domestic enterprises'accounting standards.The logics of the this paper is that based upon the introduction of newly released standard, through comparing new accounting standards for financial instruments and old ones to learn the differences between their items. Furthermore, I link practicalities of enterprises, to analyze problems which enterprise might encounter when they execute new accounting standards for financial instruments, and discuss enterprises how to reply to the influence on accounting standards for financial instruments under the new standards and market surroundings, thus gave further analysis to the points.yet to perfect.