Study On Accounting Issues Of Foreign Currency Option

Derivative is a successful example of innovation in international financial markets in the 20th. Because of its specific characteristics, foreign currency option makes a violent impact on accounting theory and brings vitality for the development of accounting theory. Regarding foreign currency option as the object of study, this dissertation deals with many accounting issues of foreign currency option, such as, recognition, measurement, and report.The structure of this dissertation consists of seven chapters, the contents of which are as follows:Chapter 1 introduces present situation of foreign currency option accounting study, intention and structure of this dissertation.Chapter 2 introduces financial knowledge of foreign currency option, including basic concept, trading profit and loss at maturity date, pricing, application, and trading risk.Chapter 3 discusses foreign currency option recognition in financial statement and recognition substance of foreign currency option, and presents the standards of both initial recognition and derecognition of foreign currency option.Chapter 4 discusses the issues of measurement, and expounds the viewpoint that foreign currency option should be measured at different measurement attribute on the basis of classification, and presents the accounting method of foreign currency option investment.Chapter 5 deals with the hedging relationship of foreign currency option, and presents the accounting method of foreign currency option hedge, and discusses problems hi hedging accounting.Chapter 6 is devoted to the discussion about disclosure of foreign currency option, including purpose and principle of disclosure, disclosure of information both in and out of financial statement.Chapter 7 sums up the main point of this dissertation.