Study On Accounting Policy Of Derivative Financial Instrument

Because of the emergence of derivative financial instruments, the traditional accounting theory is facing an enormous challenge. The research institutions of accounting standards all over the world are trying their best to improve the accounting policy of derivative financial instruments especially after the financial crisis.This paper is divided into four parts. The content of the first part involves the background and significance of the topic. The second part describes the accounting policy of derivative financial instruments, which firstly defines the original financial instruments and derivative financial instruments, and then analysis the characteristics of the derivative financial instrument compared with the original financial instruments. From the perspective of the recognition, measurement and disclosure the second part also compares the international accounting policies, the United States accounting policy and China's accounting policies relating to the derivative financial instruments. In the third part, after the description of the financial crisis, this paper analysis the reasons for the financial crisis. The inadequate derivatives policy is not the reason of causing or accelerating the financial crisis. Then, that part explained the efforts of the financial crisis on derivatives accounting policies, these effects are primarily performance in the field of fair value classification, measurement and so on. The content in the fourth part involves the latest development in derivative financial instruments accounting policies, which describes IASB's latest amendments about the accounting policies for derivative financial instruments, including IFRS9"Financial Instruments" and the ED2009/12"Financial Instruments: amortized cost and impairment". And these amendments are discussed in details. The last part of the paper proposes some recommendations for the future of derivative financial instruments accounting policy. These recommendations include: improving derivative accounting policies, sticking to use the fair value to measure derivative financial instruments, using simple and practical measurement model, and developing intermediary service agencies training high-quality talented person in the field of accounting policies of derivative financial instruments.