As published by the Vietnamese Chamber of Commerce and Industry (VCCI) and the World Bank (WB), in 2011 Vietnam had 622,977 entities in which 79,014 entities were bankrupted. This problem is concerned with financial risks or not and why?. Thus, the article reviews the use of derivative financial instruments for financial hedge and their effects to minimize the financial risks of the entities and bankrupt entities as well as their impacts on financial markets through decisions of investors and managers because their decisions are based on analysis results of financial statements. A country's accounting policy has not applied the derivative financial instruments for financial hedging, leading to affect that country’s economy or not? Especially, the financial markets of Vietnam or countries with similar economies have not also applied the hedge accounting to their hedge activities. The article uses the accounting theories of international accounting standards and Generally Accepted Accounting Principles in the United States and applies the methods of data analysis in the financial statements to show the results of hedge accounting that are concerned with bankruptcy, financial risks and economy decline.
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