Derivative Financial Instruments, The Accounting Problems

As a tool of evading risks and arbitraging, the derivatives bring the world great advantage and also great damage from birth up to know. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have created a detailed and complex system of accounting rules. Ministry of Finance of China has issued our standards of accounting on February 2006, before this day, the research of derivatives was very simple and easy. And most content of the researches was about: the topic of academic impact which derivatives bring to, the introduction of the standards issued by FASB and IASB. The topics are very simple and easy.Our country's new standards of accounting will be useful, the No.22, No.23, No.24 and No.37 of which introduce the recognition, the measurement, the disclosure of derivatives. Nowadays, with the quick changes of international market and the diversification of derivatives, our country needs to innovate and develop the derivatives so as to maintain the safety of economics and capital market. It is necessary and pressing to research derivatives.From the accounting point of view, this paper researches the Standards of Financial Accounting, International Accounting Standards and China's Accounting Standards, and compares the differences and sameness of the three. The paper researches the recognition, measurement and disclosure of accounting. This paper is organized into six chapters:Chapter 1 introduces the background and significance of derivatives.Chapter 2 introduces the conception, characteristic and category of derivatives.Chapter 3, 4, and 5 are the main content of this paper, the three parts introduce the topics of derivatives accounting including the recognition, measurement and disclosure.The last part summarizes the content of this paper above.In modern society, the recognition, measurement and disclosure of derivatives accounting is playing a more and more important position. The academic research of derivatives accounting will be more and more significative.