The Application Of Financial Derivative Instruments Under The New Accounting Standards In Corporate Finance

Since the 20th century,70s, derivative financial instruments has developed rapidly, it provides a useful tool to hedge,manage kinds of risk and assets for the financial institution,corporation and investors, while it also becomes some investors, best choice to speculate because of its lever effect and power profitability in the market. With the world widely use of derivative financial instruments, its impact on the macro-financial operations and in the micro-finance becomes more and more important. Under the current economic environment, China's financial market is still in its initial stage, only a small number of financial institutions and enterprises use derivative financial instruments. General business and investors have very little contact with derivative financial instruments, let alone to use it in the financial activities to hedge and gain profits. With the rapid development of China's financial markets, the state restrictions on derivative financial instruments are gradually liberalized, derivative financial instruments are increasingly well known in the near future it will become an important tool for corporate financial management, along with the rapid expansion of transactions, the huge risk of its own increasingly apparent, affecting the global financial crisis, financial turmoil keep on coming, and it seems every time with the derivative financial instruments linked. To compare the powerful features of derivative financial instruments to hedge and the same powerful self-risk, how Chinese enterprises should make good use of its advantages and avoid its disadvantages is the main contents of this article would like to discuss.This paper aims to explore the use of derivative financial instruments in the company's financial management, hope to give some interesting suggestions on how derivative financial instruments to play the role of financial management in the company and the corresponding risk management through the analysis of the basic theory of the concepts, characteristics, risk of derivative financial instruments, corporate financing activities, investment activities and asset-liability management, profit distribution management, financial management activities in how to use derivative financial instruments to reduce costs, avoid risk, access to benefits, as well as what attention should pay to the use of derivative financial instruments the in process of corporate financial management. If we do not participate in derivatives market, companies will lost a powerful hedging tool and risk-adjusted returns and will be exposed to a number of uncertain risk in international competition. Derivative financial instruments is a fire, if we make the best use of it, we can benefit from it, and make it serve us, or else is committed self-immolation, which is the main purpose of studying derivative financial instruments. Only in-depth study of the characteristics of various types of derivative financial instruments, hedging capabilities, the self risks of themselves, can we know ourselves and can have the capability to stand undefeated in the market.