Accounting Research In Financial Futures

Monitoring of the financial futures cannot be separated from accounting management and the disclosure of accounting information.For the forthcoming establishment of financial futures markets in China,financial futures accounting theory and practice need to be conducted in an in-depth research.This paper defines the concept of financial futures,the scope of research on financial futures and the impact that financial futures put on the study of financial accounting.Based on the above researches, the paper makes a special introduce of speculation,hedging and arbitrage transactions,such as the operation of different methods of investment strategy,and analyzes different investment strategies under the investment differences in risk.Then,the essay reaches a conclusion that the financial leverage of futures speculation has more risks than arbitrage trading financial futures and financial futures to hedge themselves with the characteristics of hedge.In the following part of the paper,it introduces the International Accounting Standards(IASC) and the United States Financial Accounting Standards (FASB) for financial futures in respect of the relevant provisions and compares their differences.In this essay,it also exams relevant provisions of financial futures under the Chinese Accounting Standard,and concludes that the speculation should be in accordance with the relevant provisions of financial assets. Based on this conclusion,the paper suggests that how the presentation of speculations could be improved in the financial statements.Moreover,the paper proposes that,under the strategies for financial futures arbitrage investment,the criteria for hedge accounting treatment is not suggested to be taken.But the combined portfolio arbitrage is considered to be recognized as a transaction of financial assets at fair value.At the end of this part,some suggestions are made on hedge accounting practices.In the next part,the essay gives some proposals on the disclosure of the predictable information of the financial futures as well as the ways to disclose and details the disclosure of accounting information of the stock index futures in China.At the end,under the circumstance of global financial crisis and the negative impacts on the over financial innovation,the paper reconsiders the relationship between financial futures and the accounting regulatory requirements,proposes amendments to the fair value of financial futures measures,considers that disclosure of the financial futures exchange are needed to be strengthen and suggests ways to improve the accounting treatment to the financial futures which are used to reduce risks.