Research On The Disclosure Of Accounting Information About Derivative Financial Instruments Of The Listed Banks In China

With the financial innovation and financial liberalization, financial derivative instruments are developing rapidly recently, many burgeoning instruments have injected vitality to financial industry.However; it is showing vast destructive power as well. The hot topic to accounting world and financial economists is how to keep watching the risks related to financial derivatives. As we all know, disclosure can't decrease the risks, but disclosure has its own functions. Only disclosure the risks of the instruments to the external stakeholders promptly and accurately, can enterprises develop continually and rapidly. Thus the interest of the external stakeholders can be guaranteed effectively.Firstly, the article reviews the development of financial derivative instruments, and then analyzes the causes of the disclosure of the accounting information of the derivative financial instruments of the listed banks which provides theoretical support for the latter analysis. Furthermore, along with the status survey, the author announces some problems about the disclosure of the accounting information of the derivative financial instruments of the listed banks. Finally, the author gives some ideas to improve the information disclosure after think deeply. What come next is the author offers some suggests to boost the control of the disclosure of the accounting information about derivative financial instruments of the listed banks. In the end, the author exposes some deficiencies in the essay, and that is also the direction what the author strives for in the future.In the beginning, the introduction part, the author starts from the backgrounds and significances regard to the disclosure of the derivative financial instruments of the listed banks, and then tell us the course of development of the accounting standard about the disclosure of the derivative financial instruments of the listed banks and its research results seriously. In the second part called the basic theories related to the development and the disclosure of the derivative financial instruments of the listed banks. The author reveals the reasons and demands about the disclosure of the accounting information of the derivative financial instruments of the listed banks. The demands consist of accounting standard requirements and some institutional arrangements..In the third part called the current situation concerning the disclosure of the listed banks. The author puts forward the problems existing in the disclosure using the financial reports data about the 14 listed banks from 2007 to 2009. Firstly, the author reviews that disclosure in the report produce some influence to assets, liabilities and profits. The author also tells us that fair values bring out some impacts to the relevance and reliability of the quality of accounting information. That is to say, we don't put enough emphasizes on the disclosure of the accounting information of the derivative financial instruments of the listed banks. Then the article found that the disclosure haven't reached agreement about the aim, the policy of accounting and risk management, the way to obtain the fair value, the nature and quantities about the risk information and related parties information. In addition to it, the author show clearly that financial forwards, financial options, financial futures, financial swaps'gains and losses haven't disclosure disparately. The author also points out that the insufficiency and unseasonably information will contribute badly to the information users' and systemic-risk regulator's decision-making.In the forth part the author raises some elementary design about the disclosure of the derivative financial instruments of the listed banks. That is to say, the author gives an idea that listed companies should improve their information disclosure. For example, on a basis of pay much attention on the disclose, listed banks should disclose general information, perfect accounting policy, the way and the hypothesis to get the face value, perfect risk information. Listed banks should establish early warning mechanism in time. In other words, it should install disclosure system and audit report system timely. Then this article takes an example of disclosure of financial forwards, financial options, financial futures, financial swaps and hedge accounting to illustrate the application of the derivative financial instruments.In the fifth part solves the problem which is the managerial suggestions to the listed banks. The author lays stress on improving the risk management system. In the background of globalization, the article proposals reinforcing the control of the disclosure of the accounting information about derivative financial instruments of the listed banks to protect the development of the banks, For instance, it should establish quality control policies, strengthen skilled talents' education and training, improve the regulations about the risks and step up cooperation on international financial regulation.In the sixth part solves the problems relate to the deficiencies and outlooks. The author indicts some insufficient. For example, this article doesn't make survey of the operability concerning the disclosure of the accounting information about derivative financial instruments of the listed banks. This article doesn't contrast with the overseas information. What's more, this article doesn't use empirical approach.the author will pay close attention to those parts deeply in the future.The innovations of this paper lie in putting forward with the thoughts that listed banks should pay much attention on the disclosure. Listed banks should disclose comprehensive information, and listed banks should establish early warning mechanism in time. Then this article takes an example of disclosure of the financial forwards, financial options, financial futures, financial swaps and hedge accounting to illustrate the application of the derivative financial instruments.