The Study Application Of New Financial Instruments Standards On ZH Security Company

In 2017,China’s Ministry of Finance revised the "Enterprise Accounting Standards No.22-Recognition and Measurement of Financial Instruments".Its purpose is to improve the quality of accounting information,strengthen supervision and management,and promote the better development of the capital market.The security industry is a long-standing sub-category of the financial sector.Its business involves a wide range of financial instruments in the market.Therefore,the related accounting confirmation and measurement,performance appraisal,corporate investment methods,and management models are inevitably affected.Considering that the new standards have not yet been fully implemented in China and overseas and that the application of the new standards does not have a real case to rely on,this paper conducts research and analysis on ZH Security,an important component of the security industry,aiming to provide reference for security companies on how to apply the new standards.Simultaneously,it will provide case for the improvement of relevant standards,making it more comprehensive,more applicable,and more suitable for China’s national conditions.Simultaneously.Firstly,the paper summarizes the differences between the old and new standards and designs the plan of how the new standards could be applied in ZH Security.Then the paper predicts the impacts of applying the new standards on ZH Security on December 31,2017,especially the impacts on financial statements and business development.It initially confirms that the new standards plan will have great impacts on financial reports and indicators,off-balance sheet assets,and business models of security companies such as ZH Security whose main business is proprietary trading and asset management.Finally,the challenges ZH Security will face in implementing the new standard application plan are analyzed.It is concluded that ZH Security’s will encounter problems such as the increasing cost,irregular staffing and internal management,the upgrading and optimization of information system and evaluation system,and the contradictions among regulatory agencies,.Thus it is advised that ZH Security should prepare in advance,forming a project team,strengthening management,improving rating system,and communicating actively with the regulatory authorities.In the face of changes in the standards,ZH Securities should respond positively to keep steady development.