Impact Of IFRS 9 On The Valuation Of Commercial Banks

The International Accounting Standards Board(IASB),after several revisions of the Financial Instruments Accounting Standards,compiled all the research results and officially released IFRS 9,this standard completely replaces the current international IAS 39,marking the formation of a more advanced accounting system for financial instruments.Under the path of international convergence of accounting standards,China’s Ministry of Finance officially released the revised CAS 22,CAS 23 and CAS 24 on March 31,2017,in accordance with IFRS 9 and in combination with China’s actual national conditions.As with the accounting industry,asset valuation is also a basic service industry that maintains the normal operation of the capital market.Although the work content and functions of asset valuation are different from accounting systems,they rely on accounting information and data.Changes in accounting standards will affect the accounting and listing of accounting subjects,affecting the selection of accounting information and data required in the asset assessment process,thus affecting the determination of asset valuation results.Enterprise value assessment is one of the most frequent businesses in the asset assessment industry.The valuation of commercial banks is the basis for decision-making judgments of commercial banks for transactions,restructuring and investment.With the capital operation activities such as mergers and acquisitions,sales and debt restructuring among commercial banks in China.Increasingly frequent,it will play an increasingly important role in maintaining the operation of the capital market and promoting China’s economic development.IFRS 9 has a subversive change in the classification,measurement and impairment of financial assets compared to IAS 39,and most of the assets held by commercial banks are financial assets.It can be seen that the implementation of the new standard will have a greater impact on the operation and finance of commercial banks,thus affecting the application of the valuation method and evaluation results of commercial banks based on financial statements.As of the end of this article,there are 23 commercial banks in China that have adopted the new financial instruments guidelines since January 1,2018.According to the financial reports of 10 commercial banks,this paper quantitatively analyzes the impact of the new standard on the finance of commercial banks from the three aspects of asset and liability structure,income structure and equity structure.Then on this basis,taking Minsheng Bank as an example to measure the impact of the new standard on the valuation of Minsheng Bank based on the economic value added method and the relative valuation method,and finally give the proposed on Opportunities and challenges facing the asset valuation industry under the new standards.As an accounting standard,IFRS 9 does not seem to have a direct relationship with the asset evaluation work in terms of nature and service area.However,with the approach of IFRS 9 in China’s full implementation,it will bring profound financial accounting to financial enterprises.At the same time of the change,it also guided the asset evaluation industry to the direction of new industry construction.Therefore,at the time of the conversion of the old and new standards,by measuring the impact of the new standards on the value assessment of commercial banks that have adopted the new standards,it is of practical significance to improve the valuation methods and processes of corporate value in the financial industry,better serve China’s capital market and promote the sustained and healthy development of China’s economy.