The Research On Asset Securitization Accounting

As a new financial tool, asset securitization has been popular all over the world. It can not only resolve the huge non-performing assets of commercial bank, but become the financial options of many enterprises. The United States has been leading the development of asset securitization, so far, the Asset backed securities has become the second largest investment tools, only second to the national debt. Drawing lessons from advanced foreign countries, our country also gradually promote the development of asset securitization in the groping. In2005, Commercial banks in our country carry out the asset securitization for the first time, but the outbreak of the global financial crisis hindered the development of asset securitization in2008. On17,2012, the central bank, the China banking regulatory commission and the ministry of finance issued "the notice about further expand the pilot securitization of credit assets", formally restart the securitization of credit asset. According to the central bank, from2005to2008, there are eleven financial institutions issued17asset securitization business, the scale is66.7billion. As of June of2013, our countries’financial institutions have issued89.6billion yuan of asset securitizations.In July and August2013, in order to promote the development of the banking credit asset securitization vigorously, the state council has held two meetings. They also want to put the job as a routine task, In less than two months the top make deployment on securitization of credit assets two times. Bank asset securitization can not only improve the Bank assets’liquidity, reduce the weight of risk assets, improve the capital adequacy ratio, but also can enrich investors alternative investment vehicles. Asset securitization is a structured finance, there are many intermediaries. Such as banking, securities firms, credit enhancement and ratings agencies. Asset securitization promotes the integration of these financial institutions. The implementation of asset securitization has remarkable significance to our country. In our country although the asset securitization is not mature, the implementation of asset securitization in our country banking industry has the feasibility and necessity.As a new financial tool, asset Securitization has many advantages, for example, it can resolve the non-performing assets, improve the liquidity of the assets and reduce the bank’s systemic risk. But started late in our country, which is in the exploratory stage. In order to carry out asset securitization smoothly in our country, we conducted a series of infrastructure construction of asset securitization, including legal, technical, environment, accounting, ect. Asset securitization is a kind of structured financing tool; there are more subjects who participate in the process. The accounting problems of each subject are complexity. Although our country has formulated a series of accounting standards, there are still some shortcomings. In the paper, we mainly study the accounting recognition, measurement and disclosure issues of asset securitization. I use the comparative analysis to analyze the differences accounting measurement rules of asset securitization between FASB and IASB. Base on the status quo of asset securitization in our country, I put forward some suggestions for improvement.This paper mainly divided into five parts. The first part:The introduction. This chapter mainly outlines the background of asset securitization, the research status pro both at home and abroad, research significance, research content and methods.The second part:Related theory of asset securitization. This chapter mainly introduces the basic principle of asset securitization, a core principle and three basic principles, the definition of asset securitization, meaning and operation process. Based on the theory, the chapter introduces the main accounting problems of asset securitization:accounting recognition, accounting measurement, information disclosure.Part Ⅲ:The accounting recognition of asset securitization. This chapter firstly introduced and evaluated the three main methods of accounting recognition of asset securitization. On the basis, then I described the disadvantages and advantages of the accounting recognition methods in our country using comparative analysis. Then Ⅰ put forward some suggestions to the asset securitization in our country combined with our country’s current situation.Part Ⅳ:The accounting measurement of asset securitization. In this chapter, I firstly introduced the main methods of accounting measurement:the historical cost and fair value. Then I described the accounting measurement rules formulated by FASB and IASB. Combined the international experience and China’s status quo, I put forwards corresponding suggestions for the asset securitization in our country for the current situation.Part VI:The information disclosure of asset securitization. This chapter firstly introduced the information disclosure of non-performing asset securitization rules formulated by FASB and IASB. Then I put forward some suggestions to the asset securitization in our country combined with our country’s current situation.