Research On The Expected Influence Of New Hedge Accounting Standard On China's Listed Banks

Under the background of economic globalization, derivative financial instruments have been developed rapidly. More and more enterprises use derivative financial instruments to hedge. As an important risk management approach, hedging activities contribute to help enterprises to achieve the target of avoiding risks, stabling operation and reducing cost. In order to reflect the impact of hedging activities on the enterprise effectively, hedge accounting emerges. With the outbreak of the financial crisis in 2008, the applicability of the current hedge accounting standards IAS39 is widely questioned. The rule-based hedge accounting standards IAS39 are too strict and difficult to reflect the real effect of enterprise risk management. To solve the problem, IASB launched the revision of the guidelines, and finally IFRS9 named financial instruments: recognition and measurement was issued in July 2014. The publication represents that a more simplified and principle-based hedge accounting standards are officially formed.As a member of IASB, the current hedge accounting standard CAS24 adopts the way of international convergence. Furthermore, China's listed banks are the pioneers in the field of hedging and financial assets of listed Banks have a big part in total assets. Therefore, IFRS9 and the convergence of accounting standards in China must have a significant impact on listed banks in China. Therefore, discussing the problems of China's listed banks' hedge accounting application and the influence of the new standards is very critical.The article is divided into five chapters. The first chapter is the introduction, through listing a comprehensive research achievement of hedge accounting standards at home and abroad, the development trend of hedge accounting standards in recent years are summarized. The second chapter is the theoretical basis, the concept of hedging and hedge accounting is defined and the current hedge accounting treatment is elaborated. The third chapter is the analysis of the existing problems of the current hedge accounting standards, combined with the basic situation of China's 16 listed banks' hedging activities, my article has an analysis of the present problems existing in the listed bank, and then points out the causes of the problem. The fourth chapter is the reform of the new standards and its influence, combined with the reform of hedge accounting in IFRS9, we have an analysis of the positive and negative impact of China's listed banks if they adopt the new guidelines of IFRS9 to handle the hedging activities. The fifth chapter is the conclusion and suggestion, aiming at the expected influence of IFRS9, the article puts forward the countermeasures of international convergence of China's hedge accounting standards and the suggestions on how to carry out hedging business and apply the hedge accounting perfectly.The innovation of the paper is that it combines with the promulgated background of IFRS9 and has a systematic research of the reform content of new hedge accounting standards and the expected influence on China's listed banks' hedging accounting application if they adopt IFRS9 hedge accounting standards. At last, in the conclusion and suggestion, we put forward the countermeasures of international convergence of China's hedge accounting standard.