Research On Accounting Information Disclosure Of Derivative Financial Instruments

In recent years, in the tide of economic globalization and financial liberalization, the great extent of financial tool innovation stimulates the development of the global economy, especially the innovation and use of derivative financial tools, many enterprises for speculative profits or avoid risk, have set their sights on derivative financial products. Of course,Chinese enterprises are no exception, in addition to the financial companies, to avoid the commodity price risk, interest rate risk caused by borrowing, import and export of foreign exchange risk, part of the listed companies in China to also actively use derivative financial products as the main tool of their risk aversion. However,derivative financial instruments look like a double-edged sword, the uncertainty of its earnings and huge risks, made to reflect on the accounting and supervision become an inevitable trend. In the international market, we can see "Barings Bank" collapsed, the bankruptcy of Lehman brothers, etc; The domestic market, CAO incident and the copper events, all have close relationship with the operation of the derivative financial instruments, the application of derivative financial tools failure cases, remind us to strengthen the confirmation,measurement, disclosure of derivative financial instruments, and guard against the risk of derivative financial instrument brings to the enterprise. With the deepening of the research on its, found that fully, concrete and transparent accounting information disclosure not only can make enterprises strengthen internal and external management, effectively guard against the risk of derivative financial instrument brings to the enterprise, but also help information users to make appropriate investment and financing decisions, protect information users‘ vital interests.As is known to all, in the process of derivatives trading, the financial industry,such as the banking sector, not only can act as a financial derivative trading traders, brokers, but also act as the end-user of the derivative financial product, different roles lead to their risk exposure on the type and quantity is also different, so the people’s bank of China, the China banking regulatory commission, securities regulatory commission, the ministry of finance and other regulatory departments have promulgated many ways to make a standard, regulations and other documents, in contrast, the use number and information disclosure transparency of derivative financial product are slightly insufficient for Chinese listed companies, China’s ministry of finance issued enterprise accounting standard on derivative financial instruments recognition, measurement, presentation and disclosure made specific provision, but since most regulations are principled, too general, and is also lack of corresponding explanation in the Application guidelines, cause the problems of information disclosure of derivative financial instruments in practice.This paper adopts normative research method to explore the problem of derivative financial instruments accounting information disclosure of listed companies. Through the analysis of the actual situation of listed companies in our country at present, discusses how the listed companies further improve the accounting information disclosure of derivative financial instruments.This paper is divided into five parts.The first part is the introduction. It mainly states the research background and significance, literature review, research objectives and methods.The second part is the related theory of derivative financial instruments accounting information disclosure. First introduces the meaning of derivative financial instruments accounting information disclosure, and then from the company value maximization, information asymmetry theory, decision-making useful concept, the efficient market hypothesis, introduces externality theory of derivative financial instruments accounting information disclosure.The third part is present situation analysis of derivative financial tools information disclosure of listed companies in our country. First of all, describing and analyzing conditions of listed companies in our country use derivative financial tools according to the selected 35 listed companies. Secondly, according to the samples found that listed companies in China using the fair value of the derivative financial tools exist to obtain information disclosure too simple, risk information disclosure no pertinence, disclosure mode is not unified. Thirdly,according to the existing problems, to analyze carefully and find out their reasons, including the lack of fair value basis and perfect market valuation technical conditions, actual operation difficulty in derivative financial instruments accounting standards, lack of voluntary disclosure motivation, Chinese listed companies of rules execution efficiency is low, the management incentive constraint mechanism is not sound。The fourth part introduces Hua Neng international and Dong Fang electric derivative financial instrument risk information disclosure case, then introduce Hua Neng Zhi Ye company derivatives at a fair value hedging accounting information disclosure.The fifth part puts forward corresponding suggestions: improve the valuation techniques used in the fair value, provide fair value operation guide and promote the combination of mandatory disclosure and voluntary disclosure, derivative financial instrument risk report, establish a separate regulatory behavior.