The Securitization Of Financial Assets Recognized Problem Research

Asset securitization originated from America and has been greatly developed all over the world since then. It can transfer the illiquid assets to liquid and marketable securities, so it has been a financial product which has the fastest development and the most vigor in the modern international capital market. China's asset securitization business started the "ice-breaking journey" in 2005, which is still in the exploration and early stage.Whether the securitization asset can be "true sale" to achieve "bankruptcy-remote" or not is the key in the securitization chain, "true sale" refers to the transferred financial assets should meet derecognized conditions, "Bankruptcy remote" closely links the accounting for the transfer of financial assets and the consolidation of SPE (Special Purpose Entity). The two main accounting standards setting body-FASB (Financial Accounting Standards Board) and IASC/IASB (International Accounting Standards Committee/International Accounting Standards Board) have both published revised standards overtimes regarding accounting for asset securitization, especially for transfer of financial assets and the consolidation of SPE. If the de-recognition of transferred financial assets is the "Breathtaking leap", consolidation of SPE have significant impact to "Breathtaking leap", so accounting recognition for asset secur itization is more important. This research begins from the definition and development of asset secur itization, and reviews, analyses and compares the views of FASB and IASC/IASB, aims to understand more about the standards and give some advice for China accounting standards.This dissertation includes four chapters. Chapter1 introduces the background, the motivation, limitation and so on. Chapter2 covers the asset securitization and the main relevant accounting problems. This chapter introduces the concept, classification, process and transaction design of assets securitization and its development at home and abroad and the major accounting issues, also points out the paper mainly research on recognition for asset securitization, including the derecognized conditions of the financial assets and the consolidation of SPE. Chapter3 is the main chapter that covers the views of FASB and IASC/1ASB about the financial assets transferring and consolidation of SPE. Based on the previous paper and according to China's situation, Chapter4 analyzes the application of chain accounting standards in asset securitization market and gives some advice.