Research On The Credit Risk Assessment Of Impairment Of Financial Instruments

This paper takes N company as an example,combining Asymmetric Information Theory,and Balanced Score Card and Risk Management Theory,based on actual situation and prospective state on impairment of account receivables of the listed companies in the practical process of credit risk assessment,the main factors related to credit risk in the next 12 months can be categorised into four types:internal and external environment,the type of service,nature of clients and account aging.This paper combines with the credit risk management objectives formulated by the listed companies,construct credit risk assessment model and identify whether the credit risks of account receivables of major client among combination are different significantly.Based on the combination of overdue time,the provision proportion of impairment in the whole lifetime is reasonably estimated according to the migration rate model.Expected credit losses,impairment provisions of account receivables are measured according to the ratio of credit risk exposure and the provision proportion in different overdue periods,apply it to the expected credit loss model,draw the relevant conclusion and propose the corresponding recommendations.