| With the development of derivative financial instruments,more and more Chinese enterprises choose to use hedging to manage corporate risks.In 2006,China’s Ministry of Finance for the first enacted "Accounting Standards for Business Enterprises No.24-Hedging"(hereinafter referred to as "CAS24").With decades of accounting practices,we found that CAS24 exists a lot of problems in the actual applications,such as a limited scope,a lot of options for enterprises,as well as non-standard disclosure and statement.The International Hedging Accounting Standards(IFRS9)was revised in July 2014,and the final version was also promulgated,which will be enforced on January 1,2018.Against the background,the revision and improvement of relevant standards in China is imperative.Before the new hedging guidelines was revised,China’s Ministry of Finance introduced "Commodity Futures hedging Business Interim Provisions"(hereinafter referred to as "Interim Provisions(2016)")against commodity futures hedging accounting treatment on January 1,2016.This paper first systematically studies the present situation of hedging accounting activities of domestic listed companies in 2015,and expounds the current problems existing in accounting practice of CAS24 with the corresponding cases.And this paper also analyzed the root causes from marketing level,the internal management level of the enterprise as well as criteria level.On this basis,this paper also made some comparisons between our present hedging criteria CAS24 and the “Interim Provisions(2016)”.The use of hedging criteria can truly reflect the impact of enterprise hedging activities on the profit and loss.In practical,many enterprises were unable to achieve highly effective standards,but applied he financial instrument criteria-CAS22 to conduct confirmation and measurement.In this paper,CAS22 and CAS24 were used to confirm and measure hedging activities of R enterprise,to figure out that if the impact on profit was significant by comparison.The conclusion is that the use of financial instruments standards will twist the result of normal hedging.On the other hand,according to the disclosure requirement of “Interim Provisions(2016)”,this paper also made a full disclosure of hedging activities and hedging accounting toward R enterprise.On the basis of the above case analysis,this paper makes an objective evaluation on the “Interim Provisions(2016)”,and anticipates the impact of the implementation process and the difficulties that may be encountered.This paper aims at the improvement of the maneuverability of hedging accounting standards in China,and also to provide advices to all participants who actually use hedge accounting to help companies make better use of hedging activities for risk management. |
