The Study On Accounting Risk Of Derivative Financlal Instruments

In recent years, with the rapid development of the financial sector, derivative financialinstruments have been widely used. On the one hand, companies and financial institutions beganto make extensive use of financial derivatives to avoid risk. On the other hand, the leverage offinancial derivatives, price volatility and other characteristics, determine its own also hasconsiderable risks, particularly in the interests of investors lured, often ignoring the potential riskof trading, and it will suffer incalculable loss. Crises caused by financial derivatives make peoplebegin to reconsider the role of financial derivative, in order to give full play to the positive roleof financial derivatives, its corresponding risk have to be reduced as low as possible. Accountingrisk plays a key role in the financial derivatives risk. Therefore, how to reduce the accountingrisk for maximum full play the positive function of financial derivatives has an important role.From this point, it is quite necessary and meaningful to study the accounting risk of derivativefinancial instruments.Firstly, the paper mainly discusses study objective and significance, also summary ofdomestic and foreign study, mainly from the theory of derivative financial instruments for theanalysis of the content; Secondly, the paper discusses the basic theory of knowledge ofderivative financial instruments; thirdly, this chapter firstly from views of different scholars,summarized the definition of accounting risks, and sums up the characteristics of accountingrisks and the classification, to better grasp the concept of accounting risks. On this basis, thischapter points out features and classification of derivative financial instruments accounting risk;fourthly, this chapter points that the causes of derivative financial instruments accounting risk,include accounting standards imperfect, lack of the enterprise internal control neglecting theaccounting professional ethics construction; fifthly, in the basis of the fourth chapter, this partputs forward to perfecting accounting standards the improvement of risk management from theperspective of internal control and the strengthening of professional ethics construction to avoidrisk.