Research On The Financial Impact Of The New Perpetual Debt Regulations On China Nonferrous Mining Group Corporation

In January 2019,the Ministry of Finance issued the “ Notice on Printing and Distributing the Provisions on Accounting Treatment of Perpetual Bonds ”,which provides more details for perpetual bond issuers when determining whether the accounting classification of perpetual bonds is equity instruments or financial liabilities.Specific treatment regulations.Before the introduction of perpetual debt accounting regulations,the vast majority of issuers recognized perpetual debt as equity instruments in order to reduce the company's asset-liability ratio and modify statements.According to this new regulation,perpetual debt originally included in owner's equity It is likely to be reclassified as a liability and have a relevant financial impact on the perpetual debt issuer.This paper sorts out the issuers of perpetual debt that may be greatly affected by the new regulations,and finds that it has the greatest impact on state-owned enterprises,especially state-owned mineral enterprises,and finally chooses China Nonferrous Mining Group as a case study.This article first sorts out relevant domestic and foreign literature,explains the main changes in perpetual debt accounting by comparing the original corporate accounting standards and new regulations,and selects China Nonferrous Mining Group as a case study sample to explore pertinent debt related accounting treatment regulations.Reasons for the release,collating all the key provisions of the perpetual bond issuance classification judgment in the perpetual bond issuance statement,and conducting a detailed study on how the new rules are combined with perpetual bond issuance terms.After determining the impact of the new rules on the classification of perpetual debt accounting,through analysis of theGroup's 2018 and 2017 annual report data,it was found that under the new rules,China Nonferrous Mining Group's asset-liability ratio increased,and asset profitability decreased,which caused greater financial statements and financial performance.influences.The promulgation of the new regulations will also indirectly affect the stock prices and market value of related companies through the reaction of investors in the securities market.In the end,this article puts forward suggestions from the issuer and the regulator of the perpetual bond to provide a more detailed and adequate analysis of the financial impact of the new perpetual bond regulations.