Derivative Financial Instruments, Risk Analysis And Disclosure Discussed

It was more than thirty years from the derivative financial instrument occurred in 1972. It expresses to us it's strong life force as well as it's risk. It is just like a two-edged sword. It helps evade and transfer financial risks, but at the same time it generates a new risk. Emerging financial disturbances in recent years, example Bahrain bankruptcy, the incidents all bring huge loss to investor. If we can't use the derivative correctly, not only we can't evade the risk, and may cause huge losses. So, how strengthen to the derivative risk of research and supervision which have become one study subject. Since 1998, a famous bank inspection and management committee has already expressed their worry about that accounting information could not be fully disclosed and its negative influence to the risk inspection in a series of statements. The committee also made the greater demands on improving the skill of risk inspection and the accounting information disclosure inside the statement. Therefore how to disclose risk information effectively in the financial statement will be more difficult international theoretical and practical issues faced by accountants.Our country has joined WTO, and one of inevitable choices which the capital market opens will be the financial innovation products emerging. It was brought into China later than the other countries, so the level of the cognizance of its risk is very low. Most risks of the derivative financial instruments are brought by asymmetrical information to some extent. Through strengthening the accountant to supervise and manage, standardizing the accounting disclosure of information of the derivative financial instruments, which can strengthen the information transparency for the information user, and effectively solve the risk brought because of the information asymmetry problem. sSo the article at first systematically analyzes the derivative and it's risk, Then on the basis of drawing lessons from the domestic and internationalaccounting disclosure criterion, especially Explains how to accurately reveal the derivative risk of our country in time, and puts forward several points of conception about revealing the mode of our country the derivative: (1) Revealing the derivation contract information about the trade purpose of "The importance" in time; (2) setting up the derivative "middle period" system of the financial report; (3) Strengthening the supervision of the financial report in middle period; (4)disclosing the risk information by VAR in derivative of financial instruments.Finally the article introduces VAR model and does the real diagnosis analysis and reveals the risk of the derivative, which provides different research approaches for accounting mode that the derivative risk reveals. I expect that this article will be of some instructive significance for the development of the derivative financial instrument in China.