Research On Accounting Measurement Model Of Derivatives

In the 1970s, the risk in financial markets escalated with the end of fixed exchange rate system under Bretton Woods system, the breaking out of the first oil crisis and the internationalization & globalization of finance. In order to avoid risks, to seek survival and development in the market with fierce competition and to avoid the relevant provisions of laws and regulations, must the traditional financial instruments be innovated, then, the derivative financial instruments had emerged. Derivatives were generated from banking business innovation. The so-called derivative financial instruments are financial instruments which derive their value from the value of some other financial instrument or variable. "Quantities of derivatives emerged in the international financial market, although it could enrich financial products in the market, still the traditional accounting theory had a tremendous impact. The formation of derivatives had comprehensive challenge in the accounting elements of recognition, measurement and disclosure, of course, accounting measurement model was included. It is an avoidable problem how we should measure the derivatives in order for efficient supervision and valuable information for decision-making in contemporary accounting research.The thesis takes the accounting measurement model of the financial derivatives as research object, begins with the concept, the fundamental characteristics and types of derivatives, then studies the accounting measurement model, meanwhile, investigates the practice in listed commercial banks in Shanghai & Shenzhen Stock Exchange A-share, and put forward a viewpoint that most financial derivatives should be measured at their fair value, only a few of them should be measured at historical cost. Further more, the measurement for derivatives includes initial measurement and subsequent measurement, fair value as the only accounting measurement attribute of the derivatives will be brought into effect eventually. Meanwhile, the theory and practice of accounting measurement will get promoted and it will help the formulation of China's accounting standards and provide forward momentum for development of accounting theory. Eventually it will make China's enterprises Accounting Standards and International Financial Reporting Standards gradually achieve convergence.