Commercial Banks' Bad Credit Asset Securitization Accounting Problems Of China

In the complicated modern financial products markets, asset securitization has become a more mature means of financing, the related financial products are also successfully applied to various fields, and with the economic and technological development of increasingly complex. Asset securitization is to increase liquidity and efficiency of the means of asset securitization can not only solve the liquidity, better separation of part of the risk through the combination. Asset Securitization above special features, making it the commercial banks to resolve non-performing credit assets of an effective means to become part of the solution, a breakthrough in bad debt problems, can help the plight of commercial banks out of the bad debts and reduce the risks of bad debts, to improve the bank's overall risk-resisting ability and performance level. Bad credit asset securitization is a complex process of the project, involving broad areas, a number of participants, and details every aspect of the business will affect the smooth development, and any part of any economic activity they are not from the open accounting, the asset securitization business accounting standards is of the normal conduct of this business need for security, especially since accounting practices to businesses throughout the entire asset securitization process, the asset securitization business accounting system and norms is area worth exploring.Start from the basic principle of the article, the progressive introduction of asset securitization business accounting issues, and learn from domestic and foreign research results, study focused commercial bank bad credit asset securitization accounting recognition, and the SPV merge the two accounting statements, and domestic and foreign operations of the method of accounting adjustments and improvements, and gives the author concluded that more scientific guidance to commercial banks of bad credit asset securitization operations accounting practice recommendationsThe first chapter is an introduction, background on the significance of this topic to do an introduction, and lists articles and innovative research ideas and deficiencies; second chapter is the literature review, summarizing the research status and its sources. The third chapter describes the system non-performing credit assets securitization and transaction structuring principle, and that the proposed business development process, the initiator of the underlying asset is derecognised and the SPV merger report, are the two main accounting issues; ChapterⅣconfirmation of the termination of the underlying asset, describes three common methods and comparative analysis of domestic and foreign standards and put forward ideas to solve the problem; fourth chapter SPV merger report research results at home and abroad, the solution is given personal recommendations;Ⅴabove with specific case studies of Chapter two solutions to problems; ChapterⅥof the two problem-solving method proposed system of personal summary; ChapterⅦof the text summary.The main innovations and contributions are:First, non-performing asset securitization accounting recognition issue, summed up the current three commonly used methods. Comparative analysis of these three methods, the paper argues that, combined with the actual, should take care of the financial synthesis analysis, or take follow-up of financial analysis and synthesis involved in a more reasonable method are combined. Second, the summary of the combined domestic and international order on the SPV results, combined with the facts, the paper-related businesses that contract based on relatively simple at this stage the situation, the underlying asset should be derecognised in close connection with the case, strict control over determining the residual based on the right distribution of benefits ownership, distribution of benefits if the surplus power is still in the hands of the promoters, then be merged, otherwise not be combined.This is the inadequacy of accounting for asset securitization to grasp the overall lack of knowledge, only for the two big issues of accounting major, does not fully consider the issue, possibly in recognition of securitized assets and the SPV to terminate the merger report issue, not a comprehensive accounting of other factors to consider the impact of these two operations. In addition, only for these two problems are discussed, is not conducive to understanding and build a complete accounting system of securities.