The accounting of the derivatives in terms of banks and businesses

developments in the world economy, advanced technology, the growth in the markets, the fluctuation in the interest and exchange rate made it necessary for markets to look for new products. By that way, financial derivative products emerged. Derivative products play an important role in the development of the capital markets. They include; forward, future and swap contracts. These products contribute to the protection from the risks, speculation and arbitrage strategies for native and foreign investor.Derivative products ara one of the important tools in respect to profit margin and volume for banks in new period banking. So, its usage and the subject of its being initial recognition are gradually gaining importance.In the first sectıon of the study, the historical development of the derivative products, the purpose of using them, their features and their being compared with each other are being discussed. In the second section, this products' being initial recognition in accordance with the accounting standarts and in the conclusion part, Turkish banking sector structure and the applications of the derivative products and their being initial recognition in respect to bank accounting will be explained.Keywords: Derivative products, accounting for derivative products, banking