The Research On Accounting Information Disclosure Of Derivatives

After the disintegration of the Bretton Woods's system, international markets and interest rates, sharp exchange rate fluctuations, a large number of companies are trying to use derivative to hedge, to avoid risks. Derivative entered a period of vigorous development. However, due to its high-risk, abrupt, complexity characteristics, there are numerous cases of failure derivative transactions. Bankruptcy of Bahrain, China Aviation Oil for the huge losses are directly related with derivative. The fuse of the global financial crisis is excessive abuse of derivatives.In many bitter lessons,people have to re-examine the pros and cons of derivative and the derivative that contain a significant risk.Financial reporting is the main way to transfer the accounting information,to a large extent,the reporting are not fully disclose the value of derivative and the risk is to make investors lose an important reason,is to make management authorities deaf about the state of enterprises. Bank of events in Bahrain, even when the enterprise come to the brink of bankruptcy, accounting information is displayed in good business, for both investors and the management completely without the knowledge of the huge losses suffered.Disclosure of derivative has become the leading institutions and scholars focus. International Accounting Standards Committee, Accounting Standards Committee and so the United States do a lot of accounting issues about derivatives, introduced the derivative on the recognition, measurement, disclosure of the criteria, many scholars will focus on derivative as concerned about the object. In 2006, accounting standards, to a great extent, regulate derivatives disclosed in the table with the information disclosure of the problem. Despite this, the derivatives inherent particularity and traditional financial reporting system, resulting in the intrinsic defects in the disclosure of information in financial derivatives is not perfect. This paper mainly adopts the standard methods and incorporate case and data.The paper is divided into five parts to start:The first part is introduction, general topics introduced the background paper, related literature review, research ideas and the basic frameworks.The second part introduces the basic theory of derivative, including the definition of derivative, the definition of the types of derivative,,and the risk of derivatives.Then introduced the basic theory of accounting information, including the concept of accounting information, the quality of accounting information disclosure factors analysis, the principles of accounting information disclosure. For derivatives finally put forward the theoretical basis of accounting information disclosure,including the uncertainty of accounting theory, performance of contract of accounting theory, comprehensive income theory, risk value theory.The third section describes the existing problems of derivatives in accounting information disclosure and the reasons for the problems. Derivatives which exist in the information disclosure of the issue. Mainly as follows:first,the statements cannot fully disclose financial derivatives of accounting information; second, at fair value caused by the volatility of the report data; third, off-balance-sheet the information insufficiency and format is not uniform;fourth, accounting information disclosure is not timely. Analyses the existing problems of the above. First, traditional income statement, balance sheet weaknesses; second, unreliable and difficult to determine fair value; third,not perfect relevant laws and regulations about derivatives; Fourth, the time limitations of traditional accounting information disclosure.The fourth part is the foreign experience for reference, the first,Western countries to the reform of the income statement; second, the pragmatic nature of the U.S.FASB standards; third, the Netherlands, "bimodal" regulatory framework. Inspiration drawn three:first, an increase in the income statement; second, to develop international standards combined with the pragmatic nature; third, the establishment of separate "acts of regulators".The fifth part, derivative in our country in the disclosure of accounting problems, put forward five perfect derivative accounting information countermeasures:first, to adjust the content of financial statements, including balance sheet and income statement reform; Second, improve the fair value valuation of technology and information disclosure, including the development of the fair value valuation of the fair value of the system and enhance access to information disclosed in the specification; Third, fourth,improve relevant laws and regulations;forth, the introduction of real-time financial reporting system;fifth,learn from foreign experience,strengthen the cooperation with international organizations and communication.