financial instruments

1. Concept: refers to the contract that forms the financial assets of an enterprise and the financial liabilities or equity instruments of other units. Concept: Concept refers to the contract that forms financial assets of an enterprise and financial liabilities or equity instruments of other units. The financial assets of one party formed by the contract correspond to the financial liabilities or equity instruments of the other party. The financial assets of one party formed by the contract correspond to the financial liabilities or equity instruments of the other party. Basic financial instruments receivable cash payable bond investment equity investment and other financial instruments derivatives (financial finance) derivatives financial instruments financial futures financial options financial swaps financial forward net settlement commodity futures have little or zero equivalent derivatives/net investment or zero future delivery with little or zero future delivery net investment.

Financial assets shall be divided into the following four categories when initially recognized:

(1) Financial assets measured at fair value and whose changes are included in current profits and losses;

(2) held-to-maturity investment;

(3) Loans and receivables;

(4) Financial assets available for sale.

main points

Four types of financial assets are closely related to the specific recognition and measurement of financial assets, of which 1 and 4 types are measured at fair value; Categories 2 and 3 are measured in amortized cost. Learning in this way is easy to understand and remember. 1. Financial assets measured at fair value and whose changes are included in current profits and losses can be further divided into: transactional financial assets are designated as financial assets measured at fair value and whose changes are included in current profits and losses.

main points

The first kind of financial assets is mainly to master transactional financial assets in the exam.

(1) Trading financial assets

Financial assets that meet one of the following conditions shall be classified as transactional financial assets:

A the purpose of acquiring the financial asset is mainly to sell or buy back in the near future. For example, an enterprise acquires the financial asset to make a profit. The purpose of obtaining this financial asset is mainly to sell or buy back in the near future, for example, stocks, bonds and funds purchased from the secondary market for the purpose of price. Usually stocks, bonds, funds, etc. Buy from the secondary market for the purpose of price. Usually, this is the main part of trading financial assets (or trading liabilities) of enterprises. The main component of financial assets (or trading liabilities).

B it is a part of the identifiable financial instrument portfolio under centralized management, and there is objective evidence that the enterprise is a part of the identifiable financial instrument portfolio under centralized management. For the financial assets in the portfolio, the short-term profit method will be used to manage the portfolio in the future. For example, if an enterprise needs to combine some financial assets to engage in short-term profit-making activities based on its investment strategy and risk management, it should combine some financial assets to engage in short-term profit-making activities, and measure the financial assets in the combination at fair value, and the related changes in fair value are included in the current profits and losses. Fair value measurement, and its related fair value changes are included in the current profit and loss.

C derivatives (such as treasury bonds futures, forward contracts, stock index futures, etc.). (such as trading financial liabilities that are not used as hedging instruments in the effective hedging relationship, or trading financial assets that are not used as hedging instruments in the effective hedging relationship), such as treasury bonds futures, forward contracts, stock index futures, etc. If the change in its fair value is greater than zero, it shall be recognized as a trading financial asset and included in the current profit and loss. However, if the derivative is designated as a hedging instrument in an effective hedging relationship by the enterprise and the derivative is designated as a hedging instrument in an effective hedging relationship by the enterprise, the change in fair value of the derivative after initial recognition shall be treated according to its corresponding hedging relationship (i.e. fair value hedging, cash flow hedging or overseas net investment hedging). Net investment hedging), adopt corresponding methods to deal with it.

2. Financial assets designated as fair value and whose changes are included in current profits and losses.

Enterprises designate financial assets as financial assets measured at fair value and whose changes are included in current profits and losses. Enterprises designate financial assets as financial assets measured at fair value and whose changes are included in the current profits and losses, which usually means that the financial assets do not meet the recognition conditions of transactional financial assets, and the financial assets do not meet the recognition conditions of transactional financial assets. An enterprise can still be measured according to its fair value. When certain conditions are met, the changes in its fair value are included in the current profits and losses:

A. This designation can eliminate or significantly reduce the inconsistency in the recognition or measurement of related gains or losses caused by different measurement bases of financial assets. Inconsistency of loss recognition or measurement. The purpose of setting up this condition is to directly designate it as being measured at fair value, and the purpose of setting up this condition is to eliminate possible accounting mismatch by directly designating it as being measured at fair value and counting its changes into current losses. Such as profits, to eliminate possible accounting mismatches. For example, according to the criteria for the recognition and measurement of financial instruments, some financial assets can be designated or classified as available for sale, and some financial assets can be designated or classified as available for sale, so that changes in their fair values are included in owners' equity and owners' equity, but financial liabilities directly related to them are classified as financial liabilities measured in amortized cost, resulting in "accounting mismatch but accounting mismatch". Debt, leading to accounting mismatch. However, if the above financial assets and financial liabilities are directly designated to be measured at fair value, and their changes are included in the current profit and loss category, this accounting mismatch can be eliminated. This accounting mismatch can be eliminated if it is measured at fair value and its changes are included in the current profit and loss category.

3. The enterprise owns a financial asset and bears a financial liability. Financial assets and financial liabilities bear the same risks, and their fair values change inversely and tend to offset each other. However, risk and its fair value change in opposite directions and often cancel each other out. However, because these financial products or financial liabilities are not derivative products, enterprises do not have the conditions to use hedge accounting methods. These assets or financial liabilities are not derivative instruments, which makes enterprises ineligible to use hedge accounting methods. Because the hedging accounting method cannot be used, there are significant differences in the recognition of related gains or losses, which leads to significant differences in the recognition of related gains or losses. In this case, if financial assets and financial liabilities are endowed with fair value, in this case, if financial assets and financial liabilities are endowed with fair value, the phenomenon of "accounting mismatch" can be eliminated. Accounting mismatch.

It should be pointed out that in the above situation, it should be pointed out that in practice, it may be difficult for enterprises to specify the fair values of financial assets and financial liabilities involved at the same time. Financial liabilities are also set at fair value. If the enterprise can specify the fair value of each related transaction at the time of initial confirmation, and can expect the occurrence of other transactions, then a reasonable delay is acceptable. If the fair value is specified at the right time and the remaining transactions can be expected, then a reasonable delay is acceptable. In addition, whether only a part of financial assets and financial liabilities can be designated in practice or not depends on whether the phenomenon of "accounting mismatch" can be eliminated or greatly reduced after designation. If accounting mismatch can be eliminated or significantly reduced, can accounting mismatch be eliminated or significantly reduced? Can be eliminated or significantly reduced, can be specified; Otherwise, you cannot specify. Name; Otherwise, you cannot specify.

B. A formal written document that has stated the enterprise's risk management or investment strategy, and a formal written document that has stated the financial asset portfolio or fund financing or investment strategy. A formal written document stating the enterprise's risk management or investment strategy, and managing, evaluating and reporting the portfolio of production and financial liabilities to key management personnel according to the fair value.

2. Held-to-maturity investment refers to the mapping of non-derivative financial assets and the non-derivative financial assets that the enterprise has a clear intention and ability to hold until the maturity date is fixed and the recovery amount is fixed or determinable. And the enterprise has a clear intention and ability to hold non-derivative financial assets until maturity.

For example, for example, fixed-rate three-year treasury bonds and floating-rate two-year treasury bonds purchased by enterprises from the secondary market can be classified as held-to-maturity investments if they meet the conditions for holding-to-maturity investments; Those who meet the conditions of held-to-maturity investment can be divided into held-to-maturity investment;

Usually long-term, usually long-term. Note: Bond investment with short term (within one year) can also be classified as held-to-maturity investment if it meets the requirements of held-to-maturity investment, but the term is short (1 year). Divided into held-to-maturity investments. The purchased equity investment cannot be classified as held-to-maturity investment because it has no fixed maturity date and does not meet the conditions of held-to-maturity investment. Belonging to equity instrument investment) is classified as held-to-maturity investment. Belonging to equity instrument investment) (features: fixed maturity date, fixed maturity date, features: (1) fixed maturity date, fixed recovery amount or determinable "fixed maturity date, fixed recovery amount or determinable means that investors are fixed and determinable on the fixed maturity date as stipulated in relevant contracts".

The amount and time of cash flows (such as investment interest and principal) obtained or receivable from time to time. The amount and time of cash flow (for example, investment interest and principal, etc. ) obtained or available from time to time. For example, from the investor's point of view, if other conditions are not considered, therefore, from the investor's point of view, if other conditions are not considered, an investment can be classified as a held-to-maturity investment without considering the possible major payment risks of the issuer. Secondly, because the required maturity date is fixed, the issuer may not consider possible major payment risks. Secondly, due to the fixed maturity requirement, subordinate equity instrument investment cannot be classified as held-to-maturity investment. Furthermore, if other conditions are met, investment in equity instruments cannot be classified as held-to-maturity investment. In addition, if other conditions are met, debt instrument investment cannot be classified as held-to-maturity investment because it is a floating interest rate investment. Debt instrument investment is a floating interest rate investment and is not classified as held-to-maturity investment.

(2) The enterprise has a clear intention to hold the financial asset until its maturity. "Holding to maturity has a clear intention, which means that investors have a clear intention when they get investment, unless they encounter some clear intentions." Hold-to-maturity means that the investor has a clear intention when obtaining the investment, and the enterprise cannot control the independent events that are not expected to happen repeatedly and are difficult to predict reasonably, otherwise it will be held until maturity. One of the following circumstances indicates that the enterprise has no clear intention to hold the investment in financial assets to maturity: One of the following circumstances indicates that the enterprise has no clear intention to hold the investment in financial assets to maturity: a. The period of holding the financial assets is uncertain. The deadline is uncertain.

The holding period of this financial asset is uncertain. B. Selling the financial asset under the conditions of changes in market interest rate, liquidity demand, alternative investment opportunities and their investment returns, financial market interest rates, market interest rates, alternative investment opportunities and their investment returns, capital sources and conditions, and foreign exchange risks. However, this financial asset is uncontrollable and changeable. When the source and conditions of funds change and the foreign exchange risk changes, the financial asset will be sold. Except for the sale of financial assets caused by uncontrollable, unpredictable and unreasonable independent events. Except for the sale of financial assets caused by independent events that are not expected to happen repeatedly and are difficult to predict reasonably. C. The issuer of the financial asset can pay off according to the amount obviously lower than its amortized cost. Obviously lower than its amortized cost amount. The issuer of the financial asset can pay off D. Other circumstances that indicate that the enterprise has no clear intention to hold the financial asset until its maturity.

Other circumstances that indicate that the enterprise has no clear intention to hold the financial asset to maturity. Therefore, the issuer can redeem the debtor's debt instruments, such as the issuer exercising the right of redemption. Accordingly, for debt instruments that can be redeemed by the issuer, if the issuer exercises the right of redemption, investors can still recover almost all the initial net investment (including the premiums and transaction costs paid), so investors can classify such investments as held-to-maturity investments, including the premiums and transaction costs paid. However, investors can classify such investments as held-to-maturity investments, and the initial net investment includes premiums paid and transaction fees. Before the investor has the right to demand the issuer to redeem it, the investor cannot classify it as a debt instrument held. However, for debt instruments that investors have the right to demand the issuer to redeem, investors cannot classify them as held-to-maturity investments. 3. Loans and receivables refer to non-derivative financial assets whose quotation recovery amount is not fixed or uncertain in an active market. The main reason is that there is no quotation in the active market, that is, there is no quotation in the active market, and the recovery amount is fixed or determinable. Mainly loans and other creditor's rights issued by financial enterprises, but not limited to loans and other creditor's rights issued by financial enterprises. Loans and other creditor's rights issued by financial enterprises, but not limited to loans and other creditor's rights issued by financial enterprises. Cash and bank deposits held by non-financial enterprises, accounts receivable from selling goods or providing services, cash and bank deposits held by non-financial enterprises, accounts receivable from selling goods or providing services, loans issued by commercial banks, etc. It can be classified into this category because there is no quotation in the active market, but there is no quotation in the active market, so the recovery amount is fixed or determinable. Other corporate creditor's rights held by enterprises (excluding debt instruments quoted in active markets and debt instruments quoted in active markets) fall into this category.