Accounting Issues Arising from the Intertemporal Trading Characteristics of Financial Derivatives

Suyang Zhang; Lihui Sui

doi:10.54097/ffwykz85

Authors

Suyang Zhang
Lihui Sui

DOI:

https://doi.org/10.54097/ffwykz85

Keywords:

Financial Derivatives, Intertemporal Trading, Accounting Recognition and Measurement, Information Disclosure, Valuation Issues

Abstract

Financial derivatives are an indispensable component of the modern financial market. Their intertemporal trading characteristics have created a series of challenges and problems for accounting practice. Research on the accounting measurement of derivatives involves interdisciplinary integration and remains a relatively under-explored area. This paper analyzes the accounting problems caused by the intertemporal nature of derivatives, mainly including accounting recognition and measurement, information disclosure, and fair value valuation, and proposes corresponding countermeasures. Using bibliometric analysis, qualitative research, and case analysis, this study concludes that accounting recognition, measurement, and fair value estimation are all subject to subjectivity, leading to untrue, inaccurate, and incomplete accounting information disclosure. Such problems can be alleviated by unifying standardized valuation models and disclosure policies. This research helps promote the improvement of accounting standards for financial derivatives, enhances the efficiency and transparency of the financial market, and reveals the dynamic relationship between financial innovation and financial supervision from an interdisciplinary perspective.

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