Application Of Hedge Accounting In The Plastics Futures

The Dalian Commodity Exchange listed LLDPE futures contract in2007，whichprovided an effective tool for the vast spot enterprises to help transfer the price risks in theline operations.Over the years，the hedge accounting has been mature along with thedevelopment of the businesses.But，the enthusiasm of enterprises to participate in the futuremarket for hedge is not high.One reason is that the accounting treatment conditions aretedious and difficult to meet.In the July of2014，the International Accounting StandardsBoard (IASB) issued an “IFRS9”，which replaced the “IAS39”fully and would implementin the Jan.1st of2018. The provision has revised in the classification and measurement offinancial instruments， impairment of financial assets， hedge accounting validity to adaptto the requirements and demands of the new enterprises.Based on the research results hedge accounting business processes to sort out, andthen the situation plastics manufacturing listed companies apply hedge accounting research,combined with the actual situation of China’s plastics industry, the analysis set-commerceCo., Ltd. Beijing Haijietong of hedging business processes and risk control, accountingmethods and application of the provisions stipulated IFRS9accounting treatment ofhedging operations and analysis, comparison of different hedge accounting treatment effecton the financial statements, noting China’s current hedge accounting treatment Somedeficiencies in the implementation of guidelines exist: the validity of the test is difficult toachieve, there is room to manipulate profits, anticipated transaction shall not rigorous,incomplete disclosure of accounting information, accounting process complicated. Finally,the development and application of both companies give advice on these issues separatelyin accounting standards.In this paper, plastics manufacturing listed companies apply hedge accounting of theactual situation of the research can be made to initiate a study of the role of other industries;different accounting treatment of accounting and the impact on the financial statements tomake a comparison, you can Plastics help select a more appropriate accounting treatment according to their actual situation; Finally, the paper according to the study, the proposedbusiness when hedge accounting policy change applied retrospectively, can better ensurethe reliability of accounting information, consistency.