Research On HL Company’s Accounting Information Disclosure Of Financial Derivative Instruments

Derivatives market value developed much faster than the underlying financial instruments market scale,gradually becoming the one of the most important position in financial market.According to the international economic and financial environments getting more and more global recently,financial instruments especially derivatives appear lots of problems existing in financial reports by the recognition,measurement and disclosure in practicing,these depend on their particular characteristics such as virtuality,concealment and complexity.The affairs of China Aviation Oil indicate,The State Materials Reserve Bureau event,Barings Bank trader case and so on,such a series of lessons about business failure by financial derivative instruments misuse cases,all those events disclosed.vast risks on derivatives,meanwhile these alert us the lack of supervision and management in financial instruments.How to improve the International Accounting Standards and Domestic Accounting Standard continuously in order to report the information efficiency and timely up to very important research projects in supervision and management for derivatives.HL Company using copper futures hedging inspires me to establish ideas of this paper,using the international and domestic Accounting Standards to deal with HL Company’s financial derivatives have found a lot of accounting problems that existing in the recognition,measurement and disclosure system.According to practical conditions of HL Company on using derivatives for hedging,and by analyzing the deficiency accounting information against misapplication of accounting policies,measurement of fair value and off-balance sheet disclosure derivatives,some new ideas have been put forward to solve these problems.These new ideas has broken the restrictions of traditional accounting standards limitation,put forward the recognition of the native financial products in the balance sheet and disclosure additional information of introduction about every deal of derivatives associated with initially purpose on hedging in the form of detailed statement.Not only the aspect of quantities but also the aspect of qualities,successfully benefit in the recognition,measurement and disclosure information of financial derivatives accounting,as well as better for enterprise leaders using financial derivatives more prudently,indeed go back to use instruments to original intention:hedging.Finally safeguard the rights and interests of stakeholders.