Study On The Influence Factors Of Classification Of Financial Assets

The new accounting standards are carried out in2007, among which the most attracting is the introduction of the fair value measurement attribute. As we all know, in the accounting standards of financial instruments, the measurement attribute of fair value has been used most completely and thoroughly. In the CAS22, the financial assets held by the enterprises classified into four categories:①the financial assets held for trading.②held-to-maturity investments.③loans and receivables.④financial assets available for sale. From the perspective of the classification standard in the relevant provisions, the held-to-maturity investments and the loans and receivables have the clear recognition standards. However, the recognition standards of the financial assets held for trading and the financial assets available for sale are not clear. The classification standard of the two kinds of financial assets is management intention, which will lead to the uncertainty when divided. In addition, this two kinds of financial assets are all measured by fair value. But the accounting treatments are not the same, which will contribute to the different impact on the net earnings.In this context, the paper will carry out a study on the influential factors of the classification of this two financial assets. I hope that through this research, the full use of the financial instruments standards can be made and the improvement of the accounting standards can be stimulated.This paper can be divided into six parts which include the introduction, literature review, the analysis of the classification of the financial assets, the summarization of the relevant theory and the research hypothesis, the empirical research and the relevant advice. Firstly, this paper analysize and reviews the research result on the classification of the financial assets. Through referring to the research results of other scholars, I hope that this paper can provide some support for the following study.Secondly, this paper has compared and analysized the GAAP, the IAS and the accounting standards of China. At the same time, the paper has summarized the situation about the holding of the financial assets in the listed companies in China and has analysized the influence of the classification methods on the net earnings. That will provide a realistic foundation for the following research.For the purpose of empirical research, this paper has summarized the theories that will affect the classification and put forward the research hypothesis. That will provide a theoretical foundation for the following research.This paper chooses the financial statistics from2010to2012as the research samples. The csmar database has been used to collect the relevant statistics. The methods of single variable analysis, correlation analysis and the logistic regression analysis are used.The research result implies that the political cost, the debt contract, the risk appetite of the management, the audit quality and the importance of the financial assets all have significant impact on the classification. In addition, the compensation contraction, the development capacity and the operating conditions also have impact on the classification.Finally, this paper put forward some suggestions on the classification and makes plans for the further study of this topic.The innovation points of this paper can be summarized as follows:First, on the background of the reform of the financial assets classification in the IAS, through the analysis of the holdings of financial assets in the listed companies, this paper focus on the contract motivation and economic causes of classification of the financial assets. Through this research, I hope it can provide some reference for the reform of the accounting standards and the research on the earnings management. Second, this paper compares the holdings of financial assets held for trading and financial assets available for sale in the financial and non-financial listed companies. This can provide some reference data for the related research in the future.Finally, this paper chooses the political cost, debt contract and compensation contract to research contract motivations of the classification and choose the management’s risk preference, the audit quality, the development capacity and the operating conditions to analyze the economic incentives.