Research On Hedging Accounting

With the rapid development of market economy, more and more companies use hedging to hedge price risk and to do risk management, so that the profits will not produce more substantial fluctuations. At the same time, companies need hedge accounting to record the language, measure, and report the results of hedging to the users of financial statements. On the other hand, Chinese enterprises start to use hedge accounting later and in the development of hedge accounting has experienced a long period of blank time. This paper aims to interpret the latest international norms and in-depth analysis of the status of the application of hedge accounting and typical cases, provide for the improvement of the hedge accounting criteria of practical recommendations.In this study, drawing on previous theory and research results, based on the first outlines of hedge accounting standards. First I outlined our hedge accounting standards, and for the "International Financial Reporting Standard No. 9- Financial Instruments" on the revision and improvement of accounting hedge part of the interpretation, summary of the latest changes in the guidelines to help our hedge accounting standards and international accounting standards convergence. Secondly,the status quo of 10 listed companies using cash flow hedging strategy applied hedge accounting for data analysis were unwound from hedging elements of effectiveness of hedging and hedge accounting information disclosure three areas. Summed up Chinese enterprises in the process of applying hedge accounting the problems.Followed by Donlinks grain and oil hedging operations as an example, in-depth analysis of its use of hedge accounting, the overall development and that the use of hedge accounting for hedging operations help Donlinks Oil risk management and stable operating profit, but also its practical problems in the application of hedge accounting that exist are summarized. Finally, the above problems, put forward a sound set of accounting standards to Chinese specific recommendation that the hedge accounting criteria of improving the working relationship may correspond to that standard from a perfect hedge, simplify and improve the effectiveness of the evaluation criteria for hedge accounting disclosure requirements in three parts expand.