Researches On The Accounting Policy And Practice Of Loan-loss Provision

Loan-loss provisioning is an important part of credit risk management practice in banking industry. However, the provisioning accounting practice is always a big problem which has troubled both the accounting department and bank regulators for many years. Take America for example, since the issuance of SFAS NO.5 in 1975, the ending of the debates around this topic between accounting department,securities supervisor and bank regulators is never coming.The theory study of loan-loss provision accounting is very insufficient in our country, especially the systemic study about the loan-loss provision policy of both internal and international. This thesis is constructed as a problem resolve orientation. Chapter two reviews the literature in this field. Chapter three and four point out the problems existing in our country's loan-loss provision accounting policy and practice. Chapter five to chapter eight systematically review the experiences of amphibolous, debate, conflict and harmonize process of ALLL standards in America since 1975, as well as the latest dynamics on the measurement model of loan asset. The problems, experience and lessons of the whole process are analyzed from the professional perspectives of accounting recognition, measurement and disclosure. Chapter nine gives some suggestions to our country's loan-loss provision accounting policy based on the American experience. Chapter ten concludes.Through this thesis, hopefully, I can give some helpful empirical support to the improvement of the loan-loss provision accounting policy in our country, and recognize the problems to which should be paid attention as well as the corresponding resolutions during the policy making and practicing process.