Derivative Financial Instruments Accounting Research

At the beginning of 80's Last century, the world was experiencing a tide of financial liberalism and innovation after the Bretton Woods System had been broken. While the financial market was in the booming development, the securities price, the interest rate and rate of exchange appeared unprecedented violent fluctuation .In order to raise the funds, evade the risk and to provide the various diverse means to speculate, the financial circles set up a flood of derivative financial instrument. However the derivative financial instrument has long been laid outside the balance sheet. The main reason is that the long-term contract in derivative financial instrument trade does not agree with the current accounting theories to recognize and measure the trade or affairs, so it greatly affects the ways to recognize, measure and disclose the trade of the derivative financial instrument .The aim of dissertation is to study the method to bring the derivative financial instrument to the accounting report ,and provide my advices to develop Chinese accounting for it .The dissertation is comprised of four parts.The dissertation begins with the further discussion attributions of the economic contract , and comparing the economic contract with the ordinary economic contract and financial instruments, I think that the derivative financial instrument is an economic contract essentially, and has all the common characters owned by the economic contract, so we should establish the accounting for derivative financial instrument on the executory contract, otherwise the accounting for the derivative financial instrument will lose the basis of the accounting theory.Then the dissertation introduces the international and domestic achievements of the accounting for executory contract, and conducts the analysis and research systemically, I think that we should improve the traditional accounting theory before the executory contracts could be recognized and fully disclosed in the accounting reports.On the basis of the accounting for executory contract , the dissertationcontinues to discuss the accounting of the derivative financial instrument. Firstly, I introduce and evaluate the accounting research achievements of derivative financial instrument world widely, especially the SFAs and the IAS s, and put forward my own perspective. Then I continue to discuss many issues involving the accounting for derivative financial instrument.The last part of the dissertation is about the development of accounting for derivative financial instrument in our country. In this part, I put forward my perspective to develop Chinese accounting of derivative financial instruments. Firstly, we should strengthen the disclosure outside the balance sheet, and refer to the achievements world widely; When our economy develop to this level at which we have the fully developed and fully competitive financial market, we reform our accounting theories, bring the derivative financial instruments into the balancesheet.