The Research Of Derivate Financial Instrument Accounting

The advent of derivate financial instruments challenged the financial accounting, so the recognition, measurement and disclosure of derivate financial instruments are different with those of normal transaction.Accounting should record not only the acquirement or happening, but also the changes of any transaction, including disappearing from the financial reports, so the recognition of derivate financial instruments should include initial recognition and discontinuing recognition. The initial recognition deals with whether recognize, when recognize and how to recognize the derivate financial instruments. The discontinuing recognition mainly deals with partially discontinuing recognition. The difficulty of measurement is the choosing of measurement attributes. Usually Fair Value is the optimal attribute for denvate financial instruments, but the aims of holding derivate financial instruments affect the measurement. Companies should choose different attributes for different aims of holding derivate financial instruments. The disclosure deals with what should be reported and how to report. The reports should at least include four parts and information of derivate financial instruments is mainly disclosed in the notes.Accounting of derivate financial instruments is an international puzzle. This essay is mainly deal with some fundamental problems.