Research On The Application Of Expected Credit Loss Model In The Devaluation Of Commercial Banks’ Financial Instruments In China

In July 2014,the International Accounting Standards Institute newly issued "International Accounting Standard No.9",which requires the application of the expected credit loss model when drawing financial instruments for impairment.On April 17,2017,China’s new accounting standards also stipulated that in the course of the confirmation and measurement of the impairment of financial instruments in China,the already-lost model no longer applies,and it is converted into an expected credit loss model.This article closely follows the theory of accounting objectives,from the practical perspective of China’s current financial market,analyzes and discusses the rationality and operability of the expected credit loss model.The article systematically sorts out the theoretical basis of the expected credit loss model,clarifies the existing problems in the impairment of financial instruments that it can solve,and comprehensively compares the similarities and differences between the expected credit loss model and other models existing in academic and practical circles.In order to further creatively,based on the theory of international norms,based on the Basel Capital Accord,combined with the specific national conditions of China’s financial markets,a more effective financial impairment calculation model was constructed,and China’s main The 2012-2016 financial data of Bank A,one of the commercial banks,carried out a scenario simulation of impairment testing of the bank’s loan business,and correlate the corresponding data obtained with the data of the existing loss model.,Volatility and periodicity and other aspects,all-round comparative collation and analysis,conducted extensive and impartial argumentation on the accounting effects and economic effects of the expected credit loss model.Finally,it is found that the expected credit loss model plays an obvious role in solving the problem of procyclicality and cliff effect,and it can also greatly maintain and enhance the stability of the financial system itself.The research in this paper shows that although the problem of impairment of financial instruments belongs to the category of accounting discussion,it cannot be regarded as a pure accounting problem.In a mutually linked organic financial system formed by financial instruments,financial companies,and financial markets,the impairment of financial instruments is a cornerstone of existence,and its in-depth study is the key to safeguarding and maintaining the stability of the financial system.Therefore,we must be careful about the complex problems of finance and accounting,but we can’t do absolute cuts.Under the overall situation of maintaining financial stability and financial development,we will do our best to do a good job of accounting services in the financial market.