Derivative Financial Instruments Accounting Theory

Having reformed . opened and developed for about 20 years, China is in the way of continuous and high-speed developing. During this period , economic growing capital financing foreign-trade developing and capital market setting-up, all involved the efficiency of finance instrument designing controlling and running. Since the 80s in the 20 century, due to the Breeden forest system collapsed, many country either relaxed or abandoned the regulation. This resulted in world-wide finance freedom idea. In the same time, finance market have developed vigorously. On the other hand, this leaded to the big fluctuant. Because the risky higher return and future trading is the main character of the derivative finance instrument, derivative was efficiency instrument of capital collection and risk transfer, also it was the manner of the speculate and arbitrage. So , world accounting investigated the traditional and derivative finance instrument, but until now , they did not established a reasonable account management and information program for some derivative finance instrument Because a lot of the finance blast and crisis(such as Asian crisis, Mexico finance crisis) were resulted from derivative , so it impelled the international finance organization and each government to reinforce the finance regulation. During the past 20 years, China's capital market was gained quite development, but it also has a big gap versus the European and America capital market. And also ours capital market is not perfect Following the economic growing, we will face a lot of issue, so we ought to enforce the research in the derivative instrumentOurs research begin at 90s of 20 century, at that time, a few of the derivative was used in the 80s. But the research of derivative theory lagged behind the use. During the time, ours research focused on the introduce of the progress in this field, but the innovate was not developed. The early accounting research focused on the foreign work translation, such as the effect of the derivative on the traditional accounting theory, including account factor, account hypothesis, measuring rules and so on . The manage of the derivative depended on the industry convention andexisting rules. It often resulted in the collision, un perfect, so it can not insure the fair and relevance of the accounting . Accompanied with the developing of the capital market, some scholar developed many valuable sight, and published some work, this is the foundation of the today's theory. Certainly, the research was not sufficiency. So we should continue to research in the basis of this foundation.The paper include four part. Chapter 1: The general of the derivative; In this part, we analysis the International Accounting Rule, America Accounting Rule and China's Accounting Rule, acknowledge the definition of the derivative instrument; We discuss how to control the derivative risk; Chapter 2: The acknowledge, measurement and information development of derivative; I argue that we should be away the "past tradition or issue", and focus on the actual future economic payoff. I discuss how to define the choice standard of the of derivative risk measure. I argue that we should setup the mid-period finance report. Chapter 3: The national management of account; I summarize the character of the exiting and exited derivative instrument, discuss the activity of China. Chapter 4: the management of the derivative risk, describe the character, kind of the finance instrument. I argue that we should the risk warning system, risk control system.