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Financial derivatives have long played an important role in the economy. Derivative instruments that a few years ago only taught in the classroom, today they are traded on the country's stock and commodity exchanges. Given the role of modern markets and Pay attention to the development of commodity and securities markets and the global experience of the need to apply high quality and accepted financial reporting standards, especially financial instrument standards, the purpose of this study was to investigate the challenges of implementing derivative instruments accounting, In the reporting environment of Iran and in accordance with International Financial Reporting Standards. This study identifies and presents the challenges of recognition and measurement of capital market derivatives and hedge accounting in accordance with IFRS 9, using qualitative content analysis to analyze the data obtained from interviews with fiftheen experts in the field of accounting, auditing and capital markets in Iran.  Based on the findings of the study, the challenges of implementing derivative instruments were classified into three main areas of recognition, measurement and hedge accounting.  The results show that the market inability to determine the fair value of derivative securities, the complexities associated with embedded options and the concepts associated with identifying, analyzing and disclosing risk in companies are the most important challenges related to the issue.