Research On Asset Securitization Accounting Problems

Asset securitization has been rapidly developed throughout the globe, especially in Europe and in U. S.A., since it originated in U.S.A. in the 1970s. This financial innovation has become one of the most important accounting projects because it not only involves other multiple problems related to financial tools, but also requires special accounting methods. The recognition of transferred asset and consolidation of SPV is main problems on securitization accounting which have attracted the attention of sponsors and accounting standard-setters.The thesis deeply explores the accounting methods of asset securitization from the following four aspects: accounting recognition; accounting measurement; consolidation of SPV; information disclosure. Firstly the paper introduces some key terms, basic operating principles and processes related to asset securitization and briefly analyzes the situations of assess securitization home and abroad, thus laying a good foundation of discussing the accounting issues of assess securitization. Then according to the introduction and analysis of accounting rules enacted by IASC and FASB, the author focuses on whether the practice that the sponsors transfers the fundamental asset to SPV should be accounted for as a sale or as a secured borrowing. As for the choice of the nature of accounting measurement, the author regards the fair value as the best pattern of measurement. Because of the particularity of SPV, traditional practices of consolidation have not already solved the accounting consolidations of SPV. Therefore, the author thoroughly studies whether the sponsors will consolidate accounting sheets and their standards of consolidation, and therefore discusses the information disclosure of assess securitization. At the same time, in the paper the author analyzes the related accounting prescription promulgated by our country which is Exposure Draft of Proposed Prescription : Accounting for Transfer of Financial Assets in Financial Organ, and thus presents her suggestions.