How are Derivative Accounting Applied for Hedging Activities?
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2013, Vol 3, Issue 4
Abstract
The derivative instruments accounting plays an important role in the development of the financial instruments markets, commodity market and in the risk management process. Because, the close relationship between the methods of derivative instruments accounting and the derivative instruments in the financial markets, commodity market for hedging activities. Moreover, they bring the relevance and reliability of Financial statements. Application of derivative instruments accounting is an essential factor for the development of financial market and economy. Currently, Vietnamese accounting is using historical cost methods for the financial assets; the fair value is not applied by the enterprises. How is difference between the historical method and fair value accounting? If the enterprises apply derivative instruments accounting, how will they have benefits? The article analyses and emphasizes usage of the derivative instruments accounting method and fair value of evaluating models to find out benefits to help managers and investors manage the risk.
Authors and Affiliations
Doan Van Dinh, Guangming Gong
Keywords
Related Articles
- EP ID EP99012
- DOI 10.6007/IJARAFMS/v3-i4/309
- Views 107
- Downloads 0
Designation and Explanation of Performance Evaluation Model Metals Producers Companies in Iran Stock Exchange with an Approach to Data Envelopment Analysis
The Sustainability Approach of Romanian Agriculture
Transition in Romania has been perceived in an original way by the structures of society, social and political factors, but mainly by the economic one. Romanian society has been deprived of the existence of market econom...
Impact of HRM Practices on Employee’s Performance
Relationship between Flexible Work-Arrangement and Commitment of Nurses in Public Hospitals in Kenya
Technology Based Entrepreneurship Financing. Lessons for Nigeria
Technology entrepreneurship is a form of business leadership based on the process of recognizing highpotential, technology-intensive business opportunities, gathering resources such as talent and cash, and managing rapid...