Analysis Of Derivative Financial Instruments Related To Accounting Issues

In the beginning of 1970's, the developed country has relaxed or canceled controlling to fixed interest rate, and have adopted floating rate system commonly, this prompt the exchange rate,interest rate,stock market to enter the market which is hardly to predict in the long period and bigger range, owing to this, financial market has produced the intense demand to evade the risk But, these risk has been hardly to evade by traditional financial instruments, from this, the finance is innovative very urgent, financial derivative instruments has been born in this time. After developing for more than 30 years, financial derivative instruments has brought the gigantic effect into the field of evading risk, reducing financing cost and so on, but we are also ought to see the complexity and uncertainty because of it, that it also contain gigantic risk, and also bring gigantic loss.How to have reinforced and inspection to financial derivative instruments, have already become the problem solving urgently. Accounting must undertake.corresponding responsibility, because it is one of the administrative means. The main body of this thesis is carried out mainly from three:recognition,measurement and disclosure.Though financial instruments do not accord with tradition accounting element definition when recognize, But in substance, it is right or the duty that enterprise owns now, inflow or outflow the enterprise fund in future. So it is the same with the assets and liabilities on tradition significance, as far as effect.Therefore, we should amend the tradition accounting element concept frame, expand the range that the accounting element affirms, and bring into accounting statement. The financial instruments'recognition include initial recognition, again recognition and ends recognition. Because of the financial instruments existence uncertainty made the traditional measurement--historical cost measurement have limitation, therefore, we should measure it by value just and sound. Financial instruments have bigly trade risk, because of the lever characteristic that then, expressing the objective reveal risk to control financial instruments'information truly by inner and outside shows is very necessary.Financial instruments'appearing and developing have stretched and practiced accountings'field, in our country it already developed gradually, But financial instruments accounting belonging to new field in our country, the development of it stagnates late than development of financial instruments, Therefore, as early as possible work out the financial instruments accounting criterion and build a accounting standard system, being that our country accounting criterion organization's urgent mission.The thesis will carry out investigation and discussion about relevance problem of the financial instruments accounting. I hope to break in this field, and provide a little beneficial suggestion to our country accounting organization.