Study On The Optimization And Implementation Results Of The Accounting Standards Related To Our Derivative Financial Instruments

In the1970s with the collapse of the Bretton Woods system and the outbreak of theglobal oil crisis, interest rates, exchange rates, stock prices undergone dramaticfluctuations, in this context, derivative financial instruments emerged, and with thedeepening of the financial innovation and financial liberalization, its use becomes morewidely. On the one hand, the emergence of derivative financial instruments provides aneffective means for companies to avoid risks and enhance risk management; the otherhand, the enormous risk inherent in derivative financial instruments makes the businessengaging in derivatives transactions to go bankrupt even crisis frequently. Therefore, inorder better to transmit the information on derivative financial instruments to investors,which requires the accounting standard-setting bodies to fulfill the responsibility ofaccounting.The outbreak of the global financial crisis in2007, financial instrumentsaccounting issues were pushed to the cusp. The face of all the accusations and pressure,in order to reduce the complexity of financial instruments accounting, improve thequality of financial reporting in order to provide investors with more useful informationfor decision making, IASB and FASB jointly launched the improvement projects of therecognition and measurement of financial instruments to improve the recognition offinancial instruments, classification, measurement, hedge accounting and other issues,longing for developing a uniform set of new guidelines to replace their correspondingguidelines, and responsing to G20and the FSB’s call to establish a global unifiedhigh-quality accounting standards. This paper based on the implementationeffectiveness of accounting standards related to our derivative financial instruments, anddraw on the outstanding achievements of international accounting standards on theamendments of financial instruments, in order to probe preliminarily the optimization ofour accounting for derivative financial instruments.In addition to introduction, the paper is divided into six parts: The first part mainlyexplains the theory, including derivative financial instruments definition, characteristics,classification, function and the accounting recognition, accounting measurement,accounting disclosure. The second part mainly passes through investigation and analysis,and builds the model to empirical tests the implementation of the results of our currentaccounting standards relating to derivative financial instruments, and finds some other problems in the implementation processes in order to seek out the breakthrough for theoptimization of our derivative financial instruments accounting. The third part, analyzessystematically after2008the IASB and FASB about the newest research progress ofderivative financial instruments relevant accounting standards, and carries on theanalysis and contrast, finally get several enlightenment to optimize our derivativefinancial instrument accounting. The fourth part, based on the research content above,from derivative financial instruments accounting recognition, measurement, disclosureand the comparison and the choice of the different accounting treatment methords tooptimize our derivative financial instruments accounting. The fifth part, in view of theproblems of current derivative financial instruments accounting standards in theimplementation process and in the optimization process to put forward this paper’srelevant Suggestions. The sixth part lists this paper’s study conclusion and innovationpoints, limitations and future research direction.