Study On Derivative Financial Instrument's Accounting Measurement

For a long time, historical cost accounting measurement has been the main mode, but with the economic development, especially in derivative financial instruments continue to emerge, the historical cost has become more difficult to cope with the situation. In order to maintain the usefulness of accounting information quality, the standard-setting bodies regard the fair value of derivative financial instruments as the target.China promulgated in 2006 and in 2007 listed companies to use the new accounting standards on fair value accounting measurement .Attributes with China accounting standards and international accounting standards is one important sign of convergence. However, due to the sweeping global financial turmoil will be the fair value of derivative financial instruments to promote the application of white-hot level. Explore this issue explore the development of accounting rules, improve accounting theory, accounting and other related disciplines to promote the construction of important practical significance.This paper will first start with the definition of derivative financial instruments to illustrate the unique characteristics of derivative financial instruments. Next, the introduction of the definition of fair value, fair value and other measurement attributes relationship. Measurement of derivative financial instruments and then make theoretical analysis shows that the historical cost measurement of derivative financial instruments measured at fair value limitations of feasibility. The fourth part of the fair value of derivative financial instruments in the practical application of accounting measurement, combined with the financial crisis and the impact of the fair value of the discussions, further analysis of the fair value measurement of derivative financial instruments influence and impact. Finally, concluding remarks on the basis of issues arising for the corresponding comments and suggestions.