Accounting Research On Hedging

Enterprise in economic activity inevitably face many risks such as foreign exchangerisk, the interest rate risk, commodity price risk, stock price risk, credit risk and so on,more and more companies use the hedging activities on all kinds of risk in riskmanagement, enterprise through the hedging activities can control risk. To goodsproduction operator, through the flexible and rich scheme to ensure that the management ofthe enterprise stability, financial stability, stable profits, which makes the enterprise tododge the ability of the risk gradually improve. In the hedging accounting practice,investors and entrepreneurs need to understand the effectiveness of hedging, risk controlmanagement policy, and now whether accounting disclosure can reflect the benefits andrisks of transaction. Agricultural futures has become the largest trading in the futuresmarket, agricultural enterprise more urgently need skilled use hedging accountingstandards for financial report, this paper adopts rules in theoretical analysis of hedgingaccounting standards to give a detailed analysis, the practical level in combination of theagricultural enterprises hedging the practical application of criteria are proposed.In this paper, first,a review of the part in the U.S. accounting standards board and theinternational accounting standards board and our country enterprise accounting standardscommittee for financial tools and the hedging accounting theory made developmentprocess. Second shows the hedging accounting of the basic theory, through the comparisonSFAS133, IAS39, CAS24, clear up the three standards of before the similarities anddifferences between, to our country hedging accounting standards to provide reference forthe later development. And then, according to the securities exchange from agriculturalsector of the hedging accounting application of information, analysis of China’s currentagricultural plate the actual situation of the hedging accounting application, this paperreveals the hedging accounting present agricultural sector actual problem in applicationand relevant Suggestions are given. Finally, according to principle understanding andpractical application, puts forward the hedging accounting standards problems andsolutions of. According to the hedging accounting application management subjectivitystrong, evaluate the hedging effectiveness in time is not enough, hedging accountinginformation disclosure is not comprehensive timely put forward the hedging accountingstandards of narrow terms choices space, the effectiveness of establishing the dynamicevaluation system, strengthen the supervision of the departments have tube, to strengthenthe control of a very high level of performance information disclosure of the relevantsuggestion.