A Study On The Accounting Problems Of Commodity Futures Hedging Business Under The New Standard

In 2008,the subprime loan crisis took place on Wall Street,which is in the status of the world financial center.Under the trend of the globalization of the world economy,the financial crisis swept through most countries of the world rapidly.In this context,to avoid and manage their own business risks has become the goal of many enterprises in their daily operations.With the perfection and development of derivative financial instruments in our country,more and more enterprises pay attention to the hedging function of derivative financial instruments,and begin to try to use hedging business to prevent and avoid the business risk of enterprises.In the case that there are many loopholes in the old CAS24 hedging criteria,at the same time,China is in the process of integrating with the IFRS,and the promulgation and implementation of the new CAS24 hedging accounting standards is inevitable.However,due to prudence considerations before the promulgation,China first issued the Interim Provisions on Hedging of Commodity Futures in 2015.After consulting the opinions of all parties and achieving certain results in the interim regulations,the Financial Ministry of China promulgated the new accounting period of “CAS24 –Hedge Accounting” on March 31,2017.This paper adopts the special research method to objectively describe the current situation of the hedging activities and hedging criteria of listed companies in China from 2008 to 2017,focusing on the analysis of the defects of the new CAS24 hedge accounting standards in the implementation of the old standards.The improvement,in-depth analysis of the positive role of the new CAS24 hedge accounting standards reform,indicating the inevitability of its implementation.At the same time,it also points out the problems it faces in the application process and analyzes the causes of the problems.Later,the use of M company in the commodity futures hedging business to support the application of hedge accounting standards,confirmed the objectivity of the problem.Finally,on the basis of the application of the criteria and the reasons for the clearing,propose countermeasures and suggestions,such as promoting the development of derivative financial instruments,further improving the commodity futures market;increasing supervision and guidance on hedging activities;and strengthening the training of professional talents.Deepen the understanding of the new standards;enhance the valuation techniques,improve the application environment of the standards;and strengthen the construction of financial integration and hedging management and control platform system to promote the smooth transition of China's old standards to the new standards,and the new accounting standards Smooth use in listed companies.