A Study On The Classification Of Financial Assets Under The Perspective Of Game Theory

Making or revising accounting standard is a game process involved by all stakeholders. In the current reform of financial assets classification, financial institutions, as the standards'executor, launched an extensive game with financial regulatory authorities and accounting standard setters. Study the current classification of financial assets reform under the perspective of game theory, is not just accept this periodical balance reached by fully game, but also fully aware of the process and the formation conditions of benign equilibrium, thereby provide a reference for the improvement of standards. This paper is based on the game theory, also combined with stakeholder theory and the theory of financial regulation. It mainly discusses the game process between financial institutions and financial regulatory authorities and standard setter behind the classification of financial assets, revealing how the various interest groups using different means to rent-seeking and game, to maximize their own interests.This paper also studies on the convergence of our criteria with IFRS 9. In order to minimize the coordination costs, we must fully understand the potential impact brings to our listed companies for IFRS 9. Therefore, this paper takes the financial listed companies in China as samples to study the expected impact of the current classification reform, through empirical research methods. And draws the Conclusion that, the classification based on IFRS 9 can reflect the true value of business-related assets more truly. Due to the recent financial crisis, the adjusted profit index is more volatile, but in the long run, the new classification system will reduce the intentional disposal of financial assets and the problem of impairment losses, profit index will reveals a more stabilized and relevant information. Meanwhile, the unrealized loss and profit of fair value variable of financial assets reflected in other comprehensive income is more relevant. This section also comes to a conclusion that the influence of China's listed banks brings for the classification reform is insignificant, but it's significant to the insurance industry and the securities industry, while the scale of relate financial assets held by the securities industry just reduces this effect. The last part of article is the strategic recommendations.