本科毕业论文（设计） 外 文 翻 译外文题目 Derivatives: New Disclosures Required 外文出处 CPA JOURNAL 外文作者 Barbara Apostolou and Nicholas G.Apostolou 原文：原文：Derivatives: New Disclosures RequiredIn March 2008,FASB issued SFAS161,Disclosures about Derivative Instruments and Hedging Activities,which expands disclosures about derivative instruments and hedging activities. This new statement amends SFAS 133,Accounting for Derivative instruments and Hedging Activities, which established the basic rules governing derivatives. The new requirements imposed by SFAS 161 must be applied prospectively for interim periods and fiscal years beginning after November 15,2008.SFAS 133 was issued in 1998 and has been substantially amended three times in an attempt to keep pace with the increasing complexity of derivative transactions and the evolving nature of hedging activities. SFAS 133 was criticized for inadequately disclosing information about how a companys derivative and hedging activities affect its financial position, income, and cash flows. Consequently, SFAS 161 provides enhanced disclosures about the reasons for using derivatives, the accounting for derivatives and hedging activities, and their effect on the companys financial position, financial performance,and cash flows.The ensuing discussion will describe the objectives of holding and issuing derivatives, the risk exposure assumed by their issuance, the accounting for these instruments, and their effect on the issuers financial statements. In addition, the changes made by SFAS 161 to the existing disclosure requirement mandated by SFAS 133 are described. FASB was dissatisfied with SFAS 133s disclosure requirements regarding an entitys derivative and hedging activities and their impact on financial position. financial performance.,and cash flows. The intent of SFAS 161 is to enhance these disclosures and thereby improve the transparency of financial reporting.BackgroundDerivatives are financial instruments with a value derived from fluctuations in the share of an underlying asset, liability, interest rate，exchange rate, or index. SFAS 133 describes the essential characteristics of a derivative, which are summarized in Exhibit 1.A derivatives value stems from changes in the value of a related asset or liability. The rate or price that relates to the asset or liability included in the derivative is referred to as an underlying. An underlying can assume a variety of forms, including an interest rate, seeurity price,commodity price, foreign exchange rate,index of prices or rates, or other variable.For example, the underlying in an option to buy a stock at $40 per share is the $40 fixed price of the slock and not the stock itself. Changes in the underlying price cause the value of the derivative to change.The value of a derivative also is dependent upon the number of units specified in the derivative contract. For example, the value of an option to buy stock at $40 per share depends not only upon the stock price, but also upon how many shares can be purchased under the terms of the option. The total value of a derivative at any given time is determined by both the underlying price and the notional amount.Derivatives typically require little or no initial investment because the investment is not in the actual asset or liability underlying the derivative, but rather in the change in value attributable to an underlying. For example, if the price of a stock increases from $40 to $42 and an investor holds an option to buy at $40, the value of the option has increased by at least $2. If the investor owned the underlying stock. its total value would also obviously increase. The key difference is that the option holder needs to make little or no initial investment, while the owner of the stock must make a significant investment. Net settlement refers to the ability to settle a derivative contract by exchanging cash or entering into an offsetting contract without actually buying or selling the related asset or liability. For example, a futures contract is an agreement between two parties that commits one party to sell a commodity or security to the other at a given price and on a specified future date. The sale of a contract that was previously purchased liquidates a futures contract in the same way that the sale of 100 shares of GM stock would liquidate an earlier purchase of 100 shares of GM stock. Very few speculators have the desire lo take delivery of 5,000 bushels of Corn,60,000 pounds of soybean oil, or even $ 100,000 in Treasury notes. As a result, gains and losses are generally realized by buying or selling offsetting futures contracts prior to the delivery date.Derivatives can be based upon currencies,commodities, government or corporate debt, home mortgages, stocks, interest rates, or any number of indices (including an index of weather conditions).Although there are hundreds of different types of derivatives, they can be classified into th