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Research on Accounting of Derivatives in Commercial Bank

Author: NiuXiaoLin
Tutor: LiYuMin
School: Shanxi University of Finance
Course: Accounting
Keywords: Commercial banks Derivatives Impact Measures
CLC: F233
Type: Master's thesis
Year: 2012
Downloads: 279
Quote: 0
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Abstract


In the1970s,the breakup of the Bretton Woods system,worldwide oil crisis broke out in theinternational financial market interest rates and a sharp exchange rate fluctuations in currency heldby any of the main economic players are faced with due to changes in exchange and interest ratescaused losses the risk,the international financial market to avoid the resulting risk of the strongdemand.Out of the changes in the macroeconomic environment,financial institutions existingproducts and services have lost market,market risk to the financial business through traditionalitself to circumvent,financial innovation imminent.Derivative as a financial innovation the core oftheir development can be said to be changing.From birth until now only20or30years time,derivative financial instruments has been shown a strong vitality and tremendous destructive power:on the one hand it through hedging, avoid risks,a small risk,reduce costs and improve the financialmarket liquidity,and promote the development of the banking industry.Endless varieties ofderivative financial transaction,the transaction value increased dramatically,the rapid developmentof market participants;On the other hand,in the international financial market,the derivative crisisemerging:the1980s junk bond market in the United States,the1990s Bahrain Bank,Japan and JapanBank,the Asian financial crisis and so on,so that people have had a derivative sense of fear,even inderivatives is considered a scourge in the field of economy.How to make good use of this adouble-edged sword,has been attracted to the management of the academic and widespreadconcern,therefore include derivative accounting standards,systems innovation,we become anational regulatory authorities and relevant international organizations to work together in thedirection.Against this backdrop,China’s Ministry of Finance also in the February15,2006,issued a fourinvolving derivative accounting standards,namely the"stand close Accounting StandardsNo.22-Financial Instruments Recognition and Measurement,""rate admission Accounting StandardsNo.23-the transfer of financial assets","stand close Accounting Standards No.24-hedging"and"standclose Accounting Standards No.37-the presentation of financial instruments"for listed banks inJanuary2007on the1st implementation."Financial Instruments Recognition and Measurement"isthe core of the four criteria,because whether it is the transfer of financial assets,financial instruments or hedging the presentation of financial instruments is one of the prerequisites for theconfirmation and measurement.The guidelines cover not only the introduction of a"financialenterprise accounting system"did not regulate derivatives generated by the measurement ofdefects,but also on China’s large-scale enterprises,particularly for derivatives transactions frequentcommercial banks,financial and production operations both will have a huge impact.This paper willbe elaborated in derivatives start with the basic attributes,will focus on analyzing the newguidelines on derivatives the relevant provisions of China’s commercial banks to the impactbrought about by,And commercial banks to deal with these effects should be taken strategies.

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CLC: > Economic > Economic planning and management > Accounting > Accounting Organization and system
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