Research On The Impact Of New Financial Instruments Accounting Standards On China's Listed Banks

Since the outbreak of the global financial crisis in 2008,the development of International Financial and Reporting Standards has received worldwide attention.The classification and measurement of financial assets under the old version of financial instruments accounting standards is too complicated,which stimulates enterprises to manipulate profits and achieve the purpose of earnings management.At the same time,the credit risk estimation of financial assets is insufficient,and the procyclical effect of the impairment model has become prominent.Leaders of various countries generally attribute the financial crisis to these defects.In July 2014,the International Accounting Standards Board officially issued the International Financial Reporting Standards No.9 Financial Instruments.Under the requirements of China's accounting standards comprehensive convergence of international accounting standards,the Ministry of Finance of China issued three accounting standards for financial instruments on March 31,2017,which were the financial instruments accounting standards of No.22,No.23 and No.24.This paper uses the financial report analysis and data analysis methods to analyze the impact of the new financial instrument standards on China's listed banks.Taking the 2017 annual report data of 9 A+H listed banks in China as the research object,the paper compares the results of the 2017 financial statements of the listed banks under the old financial instruments standard and the results of the financial statements of the semi-annual report disclosed by the listed banks in 2018.The conclusions of this paper are as follows.The reclassification process of financial assets from four types to three types is not a simple correspondence.The classification standard of financial assets is more objective,which reduces the space for enterprises to manage earnings.Under the new financial instrument standards,the total amount of financial assets of listed banks has not changed significantly.The proportion of financial assets measured by fair value is increased,which brought different fluctuations to the profit and loss and shareholders' equity of listed banks.Under the expected impairment model,the provision for impairment of assets and the provision for loans by the listed banks increased,and the increase is mostly due to the impairment of re-measurement financial assets.The provision ratio and provision coverage ratio of listed banks have been greatly improved,which has an impact on the capital structure of banks and the pricing strategies of financial products.Under the expected impairment model,credit risk faced by the listed banks was fully estimated based on forward-looking information.However,listed banks are facing with a series of difficulties in applying the new financial instruments.This paper proposes countermeasures from the aspects of listed banks and national supervisions.The revision of the financial instrument standards will better serve the financial industry,capital markets and economic development policies such as "One Belt,One Road".In addition,the new financial instrument standards have promoted the better participation of Chinese enterprises in international trade and contributed to the development of international financial instrument standards.