1. Definition and characteristics of derivative financial instruments
According to the Accounting Standards for Business Enterprises No. No. 22 - Recognition and Measurement of Financial Instruments" defines derivatives. Derivatives refer to financial instruments or other contracts with the following characteristics: First, their value changes with a specific interest rate, financial instrument price, commodity price, exchange rate, price index, Changes in rate index, credit rating, credit index or other similar variables. If the variable is a non-financial variable, the variable has no specific relationship with any party to the contract. The second is that no initial net investment is required, or that very little initial net investment is required compared with other types of contracts that have similar responses to changes in market conditions. The third is settlement at a certain date in the future.
Derivative financial instruments are different from traditional financial instruments, and their uniqueness is mainly reflected in:
( 1) Contractuality and futurity
Derivative financial instruments are economic contracts targeting financial instruments, and their essence is a contract. Once the subject matter, transaction time, transaction conditions, etc. of this contract are determined, the rights and obligations of both parties are basically determined, and the contract is generally performed in the future.
(2) Leverage and risk
The initial net investment in derivative financial instruments is very small. Even zero, margin trading is often used, and net delivery is generally used for settlement. Investors only need to use a small amount of funds to conduct huge transactions, which is leveraged. But at the same time, the returns and risks of derivative financial instruments are multiplied. If the actual change trend is consistent with investors' predictions, high returns can be obtained. However, once the forecast is wrong, huge losses may be incurred and even severe turbulence in the international financial market may occur.
(3) Flexibility and complexity
With the rapid development of derivative financial instruments, derivatives Financial instruments are designed and createdXinshang has strong flexibility. It can not only "tailor-make" customers' needs in terms of time, amount, leverage ratio, price, risk level, etc., but can also combine various derivatives, including More technical content. Derivative financial instruments are complicated, which makes it more difficult for ordinary investors to understand new financial derivative products and make them more difficult to use completely correctly.
(4) Derivatives and innovation
Derivative financial instruments are generally based on one or several basic Financial instruments serve as targets and are in constant development and innovation, so that derivative financial instruments continue to construct "re-derivatives", and a new type of derivatives is produced almost every month. Derivatives are developing at an astonishing speed, and the issuance of derivatives is also growing at a high speed.
2. Recognition of derivative financial instruments
New Enterprise Accounting Standards The recognition of derivative financial instruments is divided into initial recognition and termination recognition.
(1) Initial recognition
According to "Accounting Standards for Business Enterprises No. 22 - Recognition of Financial Instruments" and Measurement Standards stipulate that when an enterprise becomes a party to a financial instrument contract, it should recognize a financial asset or financial liability. According to this recognition condition, when an enterprise forms the rights and obligations of a derivative financial instrument contract, it is recognized as a financial asset or financial liability. It is clarified here that the initial confirmation time is when the contract is signed, not when the transaction occurs.
(2) Termination of confirmation
When the transaction agreed in the derivative financial instrument contract actually occurs, that is When an enterprise realizes the various rights stated in the contract or the contractual right to receive cash flows from financial assets terminates, the financial asset shall be derecognized; when the current obligations of an enterprise's financial liabilities have been fully or partially discharged, the recognition shall be deactivated. the financial liability or part thereof.
In accordance with the provisions of the Accounting Standards for Business Enterprises and Application Guidelines, the recognition of derivative financial instruments is mainly divided into three categories: trading financial assets or liabilities, derivatives and Hedging instruments. Derivative financial instruments held by general enterprises are recognized as trading financial assets or liabilities; derivative financial instruments held by commercial banks are not recognized as trading financial assets or liabilities, but are separately recognized as derivatives for reflection; and for general Derivative financial instruments held by corporations and commercial banks for hedging purposes are reflected as hedging instruments.
For the above classification, the author believes that there is no substantial difference in measurement between trading financial assets or liabilities and derivatives. In order to reflect the comparability of the same business in different industries and facilitate the understanding of users and investors, the classification of derivative financial instruments should be divided into two categories: one is that derivative financial instruments held for hedging should be recognized as Hedging instruments; the second category is that in addition to hedging, derivative financial instruments held for speculative arbitrage should be recognized as derivatives.
3. Measurement of derivative financial instruments
Measurement of derivative financial instruments Measurement is the core issue in accounting for derivative financial instruments. Its measurement includes two aspects: initial measurement and subsequent measurement. According to the provisions of the new accounting standards for enterprises, the initial measurement of derivative financial instruments is measured at the fair value at the time of acquisition, and its transaction costs are included in the current profit and loss; in the subsequent measurement of derivative financial instruments held by the enterprise, the derivative financial instruments held by the enterprise are measured based on the fair value of the derivative financial instruments held by the enterprise. Different purposes and intentions are used, and different measurement bases are adopted:
First, derivative financial instruments held for speculative arbitrage are measured at fair value on the balance sheet date. Measurement, and changes in fair value are included in current profits and losses.
The second is derivative financial instruments held for hedging, which are measured at fair value on the balance sheet date. For fair value hedging, the gains and losses arising from changes in the fair value of the hedging instrument shall be included in the current profit and loss. At the same time, the gains or losses caused by the hedged risk of the hedged item shall also be included in the current profit and loss, and the book value of the hedged item shall be adjusted. Value; for cash flow hedging, the effective hedging part is included in the owner's equity, and the ineffective hedging part is included in the current profit and loss.
If the hedged item is an expected transaction, the gains or losses from the hedging instrument shall be included in the owner's equity and shall be handled in the following manner:
First, if the expected transaction causes the enterprise to subsequently recognize a financial asset or liability, the gains and losses included in the owner's equity should be transferred in the same period in which the financial asset or liability affects the enterprise's profits and losses. out and included in the current profit and loss.
Second, if the expected transaction causes the enterprise to subsequently recognize a non-financial asset or liability, the gains and losses included in the owner's equity should be included in the non-financial asset. Or the liability is transferred out in the same period when it affects the enterprise's profit and loss and is included in the current profit and loss; or it is included in the initial recognition amount of the non-financial asset or liability.
Third, expected transaction forecastIf it is not expected to occur, the gains or losses on hedging instruments that were originally directly included in the owner's equity should be transferred out and included in the current profits and losses. The measurement of net investment hedging in overseas operations is similar to cash flow hedging.
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