Challenges and Opportunities Presented by Modern Financial Instruments to Accounting Standards and Statements

Abstract

This paper aims to explore the challenges and opportunities that modern financial instruments present to accounting standards and statements. This paper first introduces the purpose and significance of the research, then sorts out and evaluates the influence of modern financial instruments on accounting standards and statement presentation, and introduces the research methods, results, discussions and conclusions. It is found that the influence of modern financial instruments on the presentation of accounting standards and statements is mainly reflected in the following aspects: It is difficult for accounting standards to accurately describe and standardize the characteristics and transactions of modern financial instruments; The innovation of modern financial instruments brings more risks and uncertainties to the presentation of corporate statements; Modern financial instruments provide enterprises with more financial management opportunities, such as optimizing the structure of assets and liabilities. In response to the challenge, we should improve the recognition and measurement criteria of financial instruments, strengthen the fair value measurement, and improve the presentation and disclosure of financial statements. In terms of taking advantage of opportunities, we should improve the international coordination of accounting standards and financial statements, strengthen the audit of financial statements, and bring more financing channels and investment opportunities to enterprises by using the innovation and development of modern financial tools.