Research On Derivative Financial Instruments For Hedge Accounting

Along with the upgrade of the theory and practise of the financial risks management,the derivative financial instrument was invented.now,it play a more and more important role in dismissing market and avoiding the uncertainty of financing,and has a perfect effect. In order to avoid all kinds of market risks , the enterprises use various derivatives to hedge against the risks more and more. The author will probe into the hedge accounting issues of the derivative financial instruments by analying the hedge accounting criterion of FASB and IASB. The international standards stipulate the measure of derivative financial instrument ,we can use it for reference to solve our puzzles.Doing this could supply chinese enterprises advices on how to choose right derivative financial instrument to hedge risks,and establish the risks control policy.Also it can help the enterprises use the hedge accounting.The thesis is to analyze the actuality of criterion and practice of hedge accounting,and put forward to some advices on how to perfect the existing hedge accounting standards and how to implement hedge accounting completely.Firstly,the thesis present the basic content of hedge accounting and the developmental course of hedge accounting standards. And then,we expatiate the recognition, measure, register and disclose.the value of hedging instrument shuold be measured by fair value,and the author introduce the model of fair value measuring simply. Fair value could support more and more actual informations about the operating and financing,so It is worthy to being use popularly.Then the author illustrate how to manage risks,and how to implement the hedge accounting,including effectiveness testing, hedging document,and accounting treatment .In the last chapter,the author analyzed and discussed the actuality of criterion and practice of hedge accounting of our country,and then put forward some advices from two angles—how to perfect the existing hedge accounting standards and how to reform the risks management control system. As to the first issue,the author brings forward to give demonstrations to cooperate with the hedge accounting standard. As to the second issue,the author put forward to a point view that we should set up a solid foundation for implementing the hedge accounting standards in three aspects: strengthen the capability of employees so as to adjust their duty on accounting treatment,advancing technology so as to properly measure the fair value of hedging instruments,attaching more importance to the risk management of enterprises and control system.