Research On Accounting Management Of Derivative Financial Instruments

Derivative Financial Instrument,or Derivative Financial Product,is one of the high-technology products which is derivative from traditional-financial instruments since 1970s. It has been widely used in the past two decades,and has become one of the primary investing instruments in the international financial market. From the beginning,it has been a two-edged weapon which on one hand help the investors preserve values ,gain profits and safeguard against risks ,and on the other hand make the investors exposed to great risks. So how to prevent from the risks brought about by the derivative financial instrument and enforce the regulation and management of it has been given more and more concern .Accounting is rightly one of the management instruments. Correspondingly,to provide relevant information necessitated by management timely ,precisely and fully is an important issue accounting circle faces. The challenge of the derivative financial instrument to the traditional accounting theory and practice makes it become one of the most important area in the accounting research. But now the research is still in the preliminary stage at home and abroad. It is very important to work over the accounting research on the derivative financial instrument.The essay includes seven parts and delves into derivative financial instrument and its accounting treatment from different angles. The first part summarizes basic problems of derivative financial instrument,pointing out its meanings,its category ,its traits and its application in the economy. The second part studies on accounting management of derivative financial instrument to the breakthrough over modern accounting theory. The rest parts deal with accounting recognition,accounting measurement ,accounting process and financial reports respectively in the derivative financial instrument.In summary,the structure of the essay give clues to logic cycle of accounting theory and strive to break through from former accounting-theory to some extent. All of the author's efforts aim to provide some values to this new issue on derivative financial instrument.