Study On Measurement Of Financial Instruments

Financial instruments accounting is regarded as one of the four problems of financial accounting. The 2008 financial crisis exposed the question of financial instrument accounting standards and fair value measurement standards. FASB and IASB conducted an integrated project to reduce the complexity of financial instruments accounting standards and significantly modified accounting standards. To keep the accounting standards for enterprises of our country continued convergence with the international financial report standards, we should pay attention to the progress of IASB and FASB, taking up their essence to modify our criteria.This paper studied the measurement of financial instruments. It first analyzes the definition and characteristics of the financial instrument in finance and then introduces the stages of the innovation of international financial instrument. It summarizes the launch time and varieties of the derivative instruments in China since the reform and opening to the outside world, which indicates the innovation of financial instrument current is in rapid development and more innovative tools will be developed. Second, it summarizes the basic problems of the measurement of financial instrument. First it gives the definition and connotation of accounting measurement attributes and puts forward all kinds of the measurement attributes, and then discusses the challenges from the financial instrument to the traditional and current theory of accounting measurement; and it points out problems in the current measurement of financial instruments. The problems of measurement of financial instruments are discussed. First it proves from two aspects of accounting practice and theoretical root that fair value is still the best measurement attribute in measurement of financial instruments, and fair value is necessary in the development of accounting theory. Then it analyzes how to improve the reliability of the fair value measurement. It compares and evaluates the discussion and improvement on fair value measurement and measurement of financial instrument internationally. Finally, it summarizes the development of financial accounting standards, pointing out that the 2006 financial instrument standards is a breakthrough, then analysis the existing problems in the current financial instruments standards from two aspects of standard self and practical applications, and put forward suggestions on the future revision of standards.