Application Of New Financial Instruments Guidelines In ICBC

With the economic globalization,the existing financial instruments accounting standards cannot meet the current requirement for the quality of accounting information,and the problems caused by the accounting standards are getting worse.Thus,in 2014,the International Accounting Standards Board revised the relevant financial instruments accounting standards,and develops the final version of IFRS 9(International Financial Reporting Standards).According to the internal accounting standards and own actual situations,in March 2017,the Chinese Ministry of Finance also develops its new financial instruments accounting standards,including financial instrument recognition and measurement(CAS22),financial asset transfer(CAS23),hedging(CAS24),and financial instrument presentation(CAS37).Meanwhile,the Ministry of Finance stipulates that domestic and overseas listed companies(A+H)should implement the new standard since January 1,2018.The new standard is based on the classification of financial assets characterized by business modes and contractual cash flow,adopts the expected loss model for financial assets with impairment requirements,and covers general hedging accounting measurement.And the general hedge accounting measurement is covered.The promulgation of this new standard indicates China's relevant financial instruments accounting standards enters a new phase.In China,the central bank is the center of Chinese financial institutions,commercial banks are the mainstay,and various financial institutions coexist.For Chinese listed commercial banks,financial assets account for a large proportion of the total assets of these banks.In other words,the reform of the new standards can definitely have a significant impact on China' s listed commercial banks.Therefore,it is necessary to study the potential impact of the implementation of the new standards on Chinese companies,and explore the effects and difficulties of the implementation of the new standards.Based on the accounting standards No.22 and No.24,this paper first reviews the development of domestic and foreign financial instrument standards,analyzes the differences between the new and old financial instruments standards.On this basis,by taking the case of the Industrial and Commercial Bank of China(ICBC)as an example,we further study the improvement of the new accounting standard against the old one,and affirm the positive effect of the new standard.Finally,this paper analyzes the opportunities and challenges faced by Chinese commercial banks in implementing new standards,and proposes corresponding suggestions on how to solve the challenges brought by the new standards and promote the healthy development of China's financial market.