Application Research On Hedging Accounting In Chinese Iron And Steel Enterprise

The steel industry is an important industry of the national economy, the promotion ofhealthy and stable development of its rapid economic development has far-reachingsignificance. But in the complex and volatile market environment, iron and steel enterprisesto risk management and control, to achieve effective business risk aversion, to ensure stableand healthy development of enterprises, iron and steel enterprises is worthy of further study.With the emergence and development of the futures market, hedging emerged, the use offutures markets to hedge become an important method for companies to transfer risk andrisk aversion. In a market economy environment, the iron and steel enterprises to face manyunpredictable business risks, requirements have to survive and develop, they should enterthe steel futures market to hedge in case the conditions are ripe, in order to effectivelyreduce business risks, and avoid unnecessary economic losses.At first this paper describes the research situation of hedge accounting at home andabroad, and then show the hedging of the basic theory, after that the study samples containannual reports of34listed steel enterprises from2009to2013April mid, analysis the hedgebusiness of our steel enterprises and the application of hedge accounting in qualitatively andquantitatively. At the same time this paper point out hedging information disclosure ofirregular accounting application higher subjectivity, hedge accounting, as well as theproblem of lack of talent. On that bias, businesses can use to build a steel framework forhedge accounting system, including the design of hedging and hedging accounting. Againthis specific case of hedging accounting steel enterprise data analysis shows that theapplication demonstrated the application of iron and steel enterprises avoid risks by hedgingthe value. Finally, analysis of the status and application of steel enterprises to hedge existingproblems and put forward some suggestion such as raised awareness of participation tostrengthen the hedging, improve the level of hedging business, rich variety and refinementof hedging hedge accounting standards recommended.