A Study On Accounting Measurement Of Derivative Financial Instruments

Since 1970s, with the disintegration of the Bretton System and the development of the financial liberalization, the risk from the financial markets increased sharply. So the financial institutions began to innovate in order to transfer, shield and disperse the risks, which resulted in the financial innovations changing rapidly. However, because the financial derivatives process such characters as high return, high risk and future trading, so they can not only shield risks, but also make speculation and arbitrage, which leaded to a series of shocking financial crisis and disturbances in the world. Thus, under the leading and advocating of Financial Accounting Standards Board ( FASB), and the participation of the Standards Institutions of some developed countries, such as Canada, Great Britain, Australia , France etc., adding the positive coordination of the International Accounting Standards Committee coordinates, some accounting standards relevant to the financial derivatives become mature gradually. Furthermore, after the settlement of accounting confirmation for the financial derivatives, Accounting Measurement is becoming the focus in the research of the financial derivatives.Moreover, with the rapid development of economy and the access to the WTO, the economic contact of China to outside is further strengthen , a large number of foreign investments enter into China, the business of financial derivatives enhance increasingly, which makes an demand on research of the accounting measurement for the financial derivatives. Under this international and domestic background, we think that it has real significance to make the research of accounting measurement for the financial derivatives. Firstly, this paper obtains the advantages that comes from the measurement for the financial derivatives with the Fair Value by comparable research with the five accounting measure-properties; Then it demonstrates the theoretical basics of the accounting measurement for the financial derivatives with the Fair Value. Thirdly, this paper discourses the applications of the measurement for the financial derivatives with Fair value to the Accounting beginning and subsequent phrases; fourthly, this paper expound that how the Fair value applies to the accounting measurement for the financial derivatives in China by combination of Chinese real situation; Finally, we arrives at our conclusion.Finally, this paper makes a summarization and gives its conclusions.