Derivative Financial Instruments Accounting Recognition And Measurement Issues

With our country entering WTO, the economy and finance in our country will stick together with the world, and derivative financial instruments will be used more frequently than before. How to strengthen the financial control of derivative financial instruments has been an urgent problem. And accounting control of derivative financial instruments has also become more important. Derivative financial instruments have been used in our country for twenty years, but there is no formal accounting standard about derivative financial instruments in our country. So the accounting recognition and measurement standard of derivative financial instruments should be drafted.This dissertation analyzes the derivative financial instruments' recognition and measurement, and puts forward points of view. There is four parts in this dissertation.In the first part, some concepts are introduced, which are the bases of the derivative financial instruments' recognition and measurement;In the second part, the international formulating processes of derivative financial instruments' recognition and measurement are introduced, and the differences among them are analyzed. This part is the international environment of derivative financial instruments' recognition and measurement;The third part is the key part of the dissertation. In this part, the accounting recognition of derivative financial instruments is discussed, and the author suggests using some recognition standards in IAS39 to identify the financial derivatives with certainty;The forth part is also the key part of the dissertation. In this part, the accounting measurement of derivative financial instruments is discussed, and the author suggests using" fair value" to measure derivative financial instruments.