Comparative Research Of Commodity Futures Hedge Accounting Between Current And Previous Standards

Under the sweeping tide of economic globalization,the Subprime Lending Crisis that began in the United States ten years ago triggered the most fierce “butterfly effect” in the global economic market since the 21 st century,which has seriously impeded the development of national economy and trade.This makes many companies began to realize that their business risks have long been exposed to the changeable global economic situation.Therefore,maintaining operational stability and avoiding various operating risks has become a goal for many companies to pursue.So another function of financial instruments in addition to speculation-hedging for corporate risk prevention,has once again received attention from all walks of life in the world.However,due to its inherent complexity and irrationality,the original financial instrument guidelines cannot meet the higher demand of the modern capital market.In 2014,after years of in-depth research and the unremitting efforts of the International Accounting Standards Board(IASB),the fully revised IFRS9 standard for financial instruments finally came out successfully.Since then,the revision of hedge accounting content in international standards has come to a successful conclusion..The application of hedging in China has also become increasingly mature.In particular,commodity futures,with its unique price discovery function,has become the first choice for many companies engaged in hedging operations in hedging instruments.However,in the actual process of using commodity futures for hedging activities,lagging behind the relevant hedging criteria,it is often the case that hedging activities do not apply to the criteria,disclosure of disclosure is not sound,and so on.In the background of new revision of CAS24 “Hedging Accounting” in our country,this article takes the main force of commodity futures hedging ——non-ferrous metal smelting and rolling processing industry——as the research sample,to have a comparative study of the Chinese enterprises under the new and old hedging standards engaged in commodity,which was conducted in order to explore the impact of the new criteria on the expected hedging market and possible problems,and put forward corresponding suggestions.This article first proposed the theoretical and practical significance of this study in the first chapter.At the same time,it has carried out domestic and international literature review on the interpretation of hedging criteria and the value of hedging accounting.The second chapter is the theoretical analysis.While reviewing the development of domestic and foreign hedge accounting standards,it interprets the content changes of the new and old hedging guidelines in China.The third chapter is the industry analysis.It has analyzed and investigated the status quo of the application of commodity futures in 67 non-ferrous metals listed companies in China,and explores the problems such as the low application of hedging and the lack of hedging disclosure.Chapter IV is a case study.A typical non-ferrous metal processing enterprise was selected to analyze the different treatment situations of the specific hedge business under the new and old guidelines,so as to clarify the drawbacks of the old guidelines and the impact of the new guidelines,and give preliminary guidelines and recommendations on the application of the company's commodity futures hedging under the new guidelines.Finally,the fifth chapter points out a number of problems that still exist in the new guidelines,and puts forward corresponding measures that can be taken by enterprises and markets,and hopes that they can promote the further development of our country's hedging business.