On The Initial Measurement And Classification Of Financial Instruments In "Gambling Agreement"

In today’s society, because of the uncertain future development prospect and the lack of collateral, the financing enterprises are difficult get financing from banks or other financial institutions. Because of inadequate market information, some of the industrial capital and institutional investors cannot obtain the ideal investment objectives also. It is precisely because the existence of such a large number of information asymmetry phenomenon, and the contradiction of agency problem, investors and the financing enterprises need detailed gambling agreement to adjustment the enterprise valuation, so that they can ensure respective interests. It’s benefit for investors to lock venture exposure, and benefit for financing enterprises’rapidly expanding. But the past issues and revisions of Accounting Standard for Business Enterprises and Relevant Explanation, did not describe the accounting guidelines of gambling agreement detail exactly, it leads to difficult to account gambling agreement in enterprises accounting. And in gambling agreement treatment, the most crucial step is the initial measurement and classification.In this paper, from the above consideration, based on an angle that relatively fair to provide enterprises a method to account initial measurement and classification of gambling agreement, combined with the newly revision in2014of the Accounting Standards for Enterprises No.37-Presentation of Financial Instruments, the Accounting Standards for Enterprises No.22-Recognition and Measurement of Financial Instruments and the Distinction of Financial Liabilities and Equity Instruments and Related Accounting Regulations and Provisions (the Financial Accounting [2014] No.13), this paper summarizes and designs a general way to account the initial measurement and classification of gambling agreement, and by using it in some typical financing case to proof its practicability.At the end of the paper, in case of other condition that the method cannot suitable exactly, the paper puts forward some feasible solutions and principles which added to form a relative complete method, and hoping it could benefit for enterprises’accounting practice.