Open AccessA Brief Analysis of Derivative Financial Instrument Accounting and China's Countermeasures
Author(s) -
Jiaying Zheng
Publication year - 2019
Publication title -
finance and market
Language(s) - English
Resource type - Journals
ISSN - 2424-8401
DOI - 10.18686/fm.v4i2.1602
Subject(s) - accounting , china , derivative (finance) , business , financial instrument , variety (cybernetics) , financial accounting , accounting information system , value (mathematics) , finance , political science , computer science , artificial intelligence , law , machine learning
In recent years, with the rapid development of China's economy, derivative financial instruments are more widely used in China's enterprises. This paper studies the accounting for derivative financial instruments, which brings great challenges and risks to the development of many enterprises because of its high stakes and high returns. Therefore, to deal with the challenges, China should reformulate accounting confirmation standards, adopt a variety of value measurement, improve accounting statements, strengthen the accounting supervision of derivative instruments risks and other scientific and effective coping strategies.