Dissertation > Excellent graduate degree dissertation topics show

Foreign Exchange Risk Management and Accounting for Hedging Instruments

Author: DiXueZhen
Tutor: WangHua
School: Jinan University
Course: Accounting
Keywords: Foreign exchange risks derivatives exchange gains/losses a fair-value hedge a cash-flow hedge
CLC: F832.6
Type: Master's thesis
Year: 2007
Downloads: 345
Quote: 0
Read: Download Dissertation

Abstract


This thesis is to study the foreign exchange (FX) risk and accounting for foreign currency transactions and hedging from the viewpoint of an accountant. The thesis covers three topics. The first topic talks about the movements of exchange rates and the operation of financial instruments in the market. The second topic is the selection of FX strategy that mainly depends on the managers’ attitude towards risks. The last topic is the accounting issues arising from foreign currency transactions and hedging, we want to know weather the balance sheet could fairly represent the value of foreign currency denominated assets and liabilities and the income statement reflect the FX gains or losses properly.The research method of this thesis includes three means including literature reviews on the FX knowledge, the collection of market data and PRC regulations through the Internet, and the study of accounting standards and its application.The PRC accounting standards of foreign currency translation and hedging foreign exchange risk mostly adopted from the international standards, both of them applied the fair value concept as the base of measurements. As the fair value of foreign monetary assets/liabilities and the derivatives can change over time, this causes adjustments to be made to their carrying value. Under these circumstances, the accounting issues covers two areas, the first one is the treatment of foreign exhchange gains/loss and the second one accounting for derivatives. As to a fair-value hedge, the exchange gains/losses arising from the derivatives and the item being hedged will be offset to each other and the difference will be recognized immediately on the income statement. To the contrary, the difference arising from a designated a cash-flow hedge will be carried on and included in the equity. At the period or year end, the devivatives on hands will be carried on the balance sheet at their fair value.Finally I suggest that our country increases the supply of the financial instruments especially the exchange between the US dollars and Non US dollars in order to give more choice for the foreign investors in the PRC.

Related Dissertations

  1. Atovaquone analogues Design, Synthesis and antitumor activity of,R914
  2. Synthesis and Seperation of 1,1’-binaphthol,O625.3
  3. The Amide study of chlorine insects,TQ453.2
  4. Gold-catalyzed Addition Reaction of Sulfonates and Alkynes and Study of Synthesis and Bioactivity of (E)-3-phenyl-substituted Acrylic Acids,R914
  5. The Properties and Synthesis of Photochromic Indole-Substituted Fulgides,O626
  6. Study on Synthetic of BINOL, Amino Acid and Derivatives Molecularly Imprinted Polymers and Their Application in the Chiral Resolution,O631.3
  7. The Teaching Strategies Research of "Derivatives of Hydrocarbons" Knowledge Transfer in High School Chemistry,G633.8
  8. The Synthrsis of Novel Purine Nucleoside Modified by C~6-Alkyl and C~6-Heterocyclic,TQ460.1
  9. Drug interactions between small molecules and proteins Spectroscopic and Molecular Docking Study,R96
  10. L-4- nitrobenzene alanine amino acid derivatives such as five kinds of biological effects,R96
  11. L-4- fluoro- phenylalanine derivative of 6 kinds of amino acids of the biological role of,R96
  12. Amino phosphonate derivatives with calf thymus DNA by the research,R96
  13. Aza polydentate metal Complexes,O627
  14. The Research on Information Disclosure of Derivatives,F832.51
  15. Financial audit to safeguard national financial security Issues,F832
  16. Reseaching on Using of Credit Derivatives of Our Country,F224
  17. The Power of Derivation-from Art to Art Dervivatves,J02
  18. The Research of the Synthesis of Ferroceneyl Deriveatives by Suzuki-Miyaura Reaction and the Synthesis of 1, 3, 4-Oxadiazoline,O626
  19. Synthesis of Novel Indolizidine Derivatives with an Amino Group,TQ463.53
  20. Research on Real Estate Credit Derivatives Market Supervision in China,F832.2
  21. Study on Synthesis and Bioactivity of Acylated Validoxylamine a Derivatives,TQ450.2

CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Exchange rate,foreign financial relations
© 2012 www.DissertationTopic.Net  Mobile