Accounting Research On Asset Custody

The capital market of China have got promotion in early years of this century and the scale of financial assets have reached high level,thus the pressure of financial assets to safe-keeping,to evaluate exactly,to disclosure timely,to compliance entity are evident.Around this situition,the asset custody system arised as one of methods to solve the problem.Through 10 years ,The asset custody industry have set up the system including the mutual fund custody,the pension fund custody and the global asset custody and so on,and the asset custody bank can provid a set of service including safe-keeping,settelment,accounting,compliance and so on.Whereever,the history of asset custody in China is too short,so there need a series of service standards in which the accounting is the core and basic standard.The paper make efforts to construct the accounting theory system of asset custody on the basic of the reaserch of the concept, the history ,the content and the trend of asset custody. The theory system include these parts,the concept framework (the CF)of asset custody accounting,the horizontal application theory in asset custody accounting,the vertical application theory in asset custody accounting and the CVP(Cost—Volume—Profit)Analysise of asset custody.The first part reserched on the basic theory of asset custody and the CF.The concept of asset custody is the service which the custody bank provided to the client on the base of fiduciary duty depending on the laws or the contracts.Orient to the different clients ,the custody can be divided in the mutual fund custody,the pension fund custody and the global asset custody and so on.The history of custody in China have include three stage, in the first stage the custody bank can only service for the mutual fund ;in the second stage,the custody area expend to pension fund;and in the third stage,the global custody services can be provided.In the world,the asset custody include the global custody,the global securities services and the global investor services.The second part of the paper emphesised on the accounting theory of asset custody,which mean the challendge of asset custody to the CF. The main aim both accounting theory and custody are all related to the"trusteeship responsibility"(especially in china).The main object on accounting of asset custody is comply with the"contract set"theory.The accounting of asset custody challendged the basic hypothsis of accounting theory.The prior select factor of accounting of asset custody is the relationship. The accounting of asset custody should emphasis on the substance over form, and should not emphasis on the reservesim."The transfer of property rights"is the prompt of accounting recognize theory from asset custody, the fair value are also to the accounting measurement theroy and accounting disclosoure theory.The last part of the paper utilize the accounting theory to summarize the rules or principles of custody. The horizontal application theory in asset custody accounting is the apply practice in the mutual fund custody,the pension fund custody and the global asset custody and so on.The vertical application theory in asset custody accounting apply accounting theroy to explain custoy area,such as safekeeping,settlement,corporation action ,compliance,performance value,securities lending and so on.The CVP(Cost—Volume—Profit)Analysise of asset custody got the broken-even point of asset custody in China.