The Study On Loan Impairment Accounting Of HS Bank

Loan impairment provision is an important part of the risk management of commercial banks, commercial banks in our country at present the provision for loan impairment is according to the book value and the present value of expected future cash flows at the lower provision, provision of basic consistent with international accounting standards.In 2008, the outbreak of the financial crisis exposed the inherent defects in the commercial bank credit assets confirmation, measurement and disclosure of management, the accounting standards based on the "incurred loss model" criticized. With a lag, and the pro-cyclical of the credit asset impairment loss recognition were criticized during the financial crisis of 2008. And then, focus on the international accounting standards for impairment of the reform has became a popular theory and practice research after the financial crisis.Based on the above background, this paper carried out the research on commercial bank loan impairment accounting. The first chapter is the introduction, mainly introduces the research background and the selected topic basis, scholars at domestic and abroad are reviewed and summarized for loan impairment accounting research situation, and introduces the main research ideas and research methods, mainly through the method of comparative analysis, theoretical analysis and normative research method, combined with the actual case of HS bank the investigation, summarizes the commercial bank loan impairment provision of the relevant principles, and the current situation and problem of the current commercial bank loan impairment were analyzed, put forward the improvement loan impairment provision and related information disclosure of the opinions and suggestions. The second chapter is the basis of the study. First, the theoretical basis of the loan impairment provision is based on the two aspects of the risk management theory and financial accounting theory, and then, respective from the stage in accordance with the proportion of five single level quality classification stage and future discounted cash flow stage discusses our country commercial bank loan process of the system development of the loan impairment provision. On the basis of this, the paper give the reasons accounting for study on loan impairment charges of commercial banks. The third chapter analyzes the case of HS bank, this paper selected the 2006 -2013 annual financial statements of the data and information disclosure, and through the analysis the loan impairment provision system application status in the accounting for impairment of loans by the chart, including the provision for asset quality, the coverage rate and the allowance for loan rate, loan migration rate, and the combination of individual provision. The fourth part is through the investigation of the case, particularly to our country commercial bank loan impairment provision in the process in the presence of some more prominent issues, including loan impairment of the subjective factor is too large, incomplete information disclosure, periodicity and inadequate provision with strong. On this basis, changes in China’s regulatory policy orientation and financial ecological environment combined with the fifth chapter, in the loan impairment provision of information disclosure to improve the process and put forward opinions and suggestions of the six aspects. Finally, has carried on the analysis of the shortcomings of this study, combined with the change of China’s regulatory policy orientation and financial ecological environment, points out that the financial accounting of impairment of assets and the future direction of development, mainly reflected in the new Basel capital agreement to accelerate the loan impairment provision in the process of implementation, coordination of regulatory policies and accounting standards the convergence criterion, non-credit assets and off balance sheet business of the provision by three aspects.