Financial tools criterion refers to the specific accounting standards for enterprises no. 22-recognition and measurement of financial instruments, the accounting standards for enterprises no. 23-the transfer of a financial asset, accounting standards for enterprises no. 24-hedging “and” the accounting standards for enterprises no. 37-financial tools of presentation. Financial tools standards already in January 2007 took the lead in the market and to its commercial bank executive. This will help our country commercial bank accounting concept, assets, liabilities and owners’ equity, the classification of the accounting table, measurement attribute the therapeutic purpose accounting, and accounting information disclosure of profound influence. Accounting goal is to guide the foundation of rule making evaluation, but also the accounting standards formulation and implementation of the measures. The author thinks that the financial instruments accounting standards, clear how to embody the commercial bank accounting goal is to understand the issues of premise. This paper analyses the characteristics of financial tools standards, focuses on financial instruments accounting standards how to embody commercial bank accounting goal.
A financial tool, the characteristics of the standards
From the perspective of the bank, financial instruments accounting standards has the following five aspects of the features:
1. To change the assets and liabilities classification standards. Compared with the old enterprise accounting standards, financial enterprise accounting system divided by deadline for assets and liabilities of the practice of the category, financial accounting standards for tools assets and liabilities according to the financial attribute is divided into financial assets and non-financial assets, financial liabilities and non-financial liability; On financial assets held by the intention and further divided into different ability to fair value measurement and the changes are included in the current profits and losses of the financial assets (including trade sex financial assets and designated as measured at its fair value and change the profits and losses of the current period financial assets), the held-to-maturity investment, loans and receivable money, a financial asset available for sale four categories; For the financial liabilities according to the different intentions also hold divided into to the fair value measurement and the changes are included in the current profits and losses of the financial liabilities (including trade sex financial liabilities and designated as measured at its fair value and change in the current profits and losses of the financial liabilities) and other financial liabilities two kinds big.
2. Introduction fair value measurement attribute. The old enterprise accounting standards, financial enterprise accounting system are based on the historical cost measurement, reflect the value of the assets and liabilities. Financial tools for financial tools of the initial standard recognition and measurement, the subsequent measurement, the final assessment, impairment test and so on all is fair value as the standard. Enterprise such as promoting hedging business can choose to use the hedging accounting method, but needs to accord with strict conditions. The fair value hedging, cash flow hedging and overseas business net investment hedging and distinguish between using the hedging accounting method, namely in the same accounting treatment during the hedging instrument and the hedging instrument by the changes of the fair value of the profits and losses of the current period to offset. It can be said that the fair value hedging accounting is as a measurement standard.
3. Will the financial derivatives in table into accounting. Because financial derivatives has the characteristics of the future character, the initial investment is zero or very few, almost no historical cost; And because of financial derivatives price fluctuation is very big, the historical cost is difficult to track their market value change. So, according to traditional accounting should follow the principle of “historic” on the form, it is difficult to confirm. Financial tools standards, commercial Banks should will financial derivatives implied all sorts of contract rights or obligations under a contract for confirmation of a financial asset or financial liability of the securitization of credit assets, have not meet the termination and other recognition criteria of financial assets and financial liabilities in table into the accounting. It can be said that the enterprise will be included in the financial derivatives in table at fair value accounting and the changes in the fair value measurement, related included in the current profits and losses or owners’ equity is the core content of financial tools standards.
4. Changed on financial assets for the impairment of the recognition and measurement. At present, the commercial bank is mainly in the CBRC urged credit and the credit category five classification dial basis, the part for ratio asset future recoverable amount (not discount) as the basis of asset impairment provision. Financial tools standards, except transaction of sexual finance capital outside, other financial assets are to be used in the final case benchmark and the combination of the way of the combination of the benchmark, through the fair value of the future cash flow or discount method recognition and measurement loss of asset impairment, once confirmed the impairment loss may not arbitrarily reversed.
5. Emphasis on financial instruments accounting information disclosure. The old enterprise accounting standards, financial enterprise accounting system requirements in accounting report notes of financial instruments disclosure risk positions, and the provisions rarely. Financial tools standards of financial instruments regulating more comprehensive and detailed disclosure. The new standards of financial instruments disclosure is not only to watch the supplement of the presentation within and also includes some independent value of the strategic and policy of the important information, mainly including the risk is closely related with the banking business data disclosure (including credit risk, market risk and liquidity risk, etc.), and some of the important financial instruments accounting policies, the hedging relationship and risk management strategy, do not accord with confirmation of the conditions of the termination of the transfer of a financial asset, and the confirmation of a financial asset or financial liability of the fair value of the financial asset, different classes information such as heavy classification.
Second, the bank accounting goal
Accounting target is accounting system can hope to reach the expected purpose or state. It is the foundation of rule making guidance, but also the accounting standards and evaluation for implementation of the measures.
At present, the theoretical circles on the accounting target main Banks hold two ideas: the agent responsibility view and decision-making availability.
The agent responsibility view think: accounting for owners of resources should be, even for all the client provide operator to perform the entrusted with the responsibility accounting information, the goal is to identify and remove the principal and the agent entrusted responsibilities between the parties. The quality of accounting information requirements in accounting, objectivity only confirm enterprise has actually happened, and economic facts in accounting measurement on the historical cost, to reflect the objectivity and verification. The state-owned commercial bank reform, the state is the only former owner, the ownership structure of the bank, the bank’s long-term stability evaluation mechanism of state-owned assets is to maintain and increase its value, this determines the state-owned bank account goals is to report the state bank managers bank assets management of responsibility. As long as preparing financial statements based on the accounting standards and the accounting system as a whole, the responsibility of the useful charge was reliable to reflect, bank accounting target is to achieve.
Decision-making availability think: the basic accounting goal is to reality and potential investors, creditors and other users of the information (such as regulators, etc.) to provide decision useful financial information, and help them to make economic policy. Accounting decision usefulness to the establishment of the target of accounting information user can at a reasonable cost of the information needed to get himself, and then make the right economic decisions. In accounting recognition not only need to make sure that those who have already happened, but also confirm economic item that has not yet occurred but for enterprise has the influence, so in accounting measurement matters on the historical cost, but also not only by the historical costs (such as fair value measurement model). After the reform of state-owned commercial Banks and numerous joint stock commercial Banks face the diversity of the main body of investment, must be more closely will target in accounting decision usefulness.
At present, China’s Banks already opening. According to the accounting standards for enterprises-basic standards of our country commercial bank accounting target localization is: to the users of financial reports provide with the bank financial position, operating results and cash flows related to the accounting information, reflects a bank of the management’s stewardship, and help to users of financial reports to make economic decisions.
The goal of the bank is to provide useful accounting of the accounting information, the usefulness of accounting information in pay attention to economic decision-making useful performance and take into account the entrusted management responsibility reflect. Financial tools of accounting standards issued reflect the internal requirement of accounting objectives.
Three, financial tools standards how to embody commercial bank accounting objectives
Financial tools from the following aspects criterion embodies the commercial bank accounting goal:
1. The assets and liabilities of the classification method, can fully reflect the change of commercial bank holding the purpose of financial instruments and ability, a true reflection of commercial bank of income and the rights and interests change status, help to the users of financial statements of commercial bank’s financial position, operating results and risk management make effective judgment. For example, a bank to hold trade of sexual finance capital is to sell in the near future, keep liquidity demand under the premise of chasing higher profitability, and trading of financial liability is to adapt the need of bank debt management initiative. Both of the initial measurement and the subsequent measurement caused by the change of the fair value of the profits and losses of the current period included in the bank. And as of bank held to maturity, the investment, its held intent to get higher on the expiry date of investment income. Because of its during the existence of the unrealized gains and losses will eventually realize the expiration date, to avoid the fair value because a follow-up measurement and cause during the term of the rights and interests of revenue or not representative, with the wave held to maturity according to the actual interest rate method investment by the amortized cost a follow-up measurement. And for the sold financial asset to still use a fair value for the initial measurement and the subsequent measurement, but the difference of two measurement included in the bank of the owner’s equity project. Can think, not changing the financial assets and financial liabilities under the premise of number, only the financial assets and financial liabilities take different classification way, we can have different income changes and the rights and interests of the results. At the same time, commercial Banks will financial derivatives into the table, make the balance sheet accounting in the content more rich, the information provided more comprehensive.
2. Financial tools in the financial tools that can be the criterion boldly into the fair value in China in recent years, mainly because of financial innovation, and a large presence business to a great extent affect some enterprise especially financial enterprise’s economic activity. Because of the fair value of future uncertainty is people the consensus reached, fair value reflect the market in considering the interest rate, risk factors for the future cash flow after the present value of the estimated, the fair value of trade sex and available for sale of securities investment class for the initial and subsequent measurement, the bank profits and losses of the potential to manifest, and this is helpful to users of the information to assess the bank’s financial position and operating results, enhance the influence of the accounting information decision usefulness. At the same time, take the fair value measurement attribute as a financial tool and favorable to the financial derivatives from inside the watch outside the watch into accounting, the more objectively reflect and financial derivatives related to the risk of and the influence of the profits and losses of the bank.
3. The impairment of financial assets are the future cash flow of the discount method, i.e. assets impairment is the amount of financial assets the recoverable amount of the financial asset amortized cost less than the balance. Among them, the recoverable amount through the future cash flow of the financial asset according to the original real interest rates (rather than nominal interest rates) discount, and consider the relevant to determine the value of the security collateral. Relative to the classification of the category, the percentage of scientific, objective impairment test method, not only can constraint commercial bank assets irrational expansion of the scale, it can reflect the bank loan and the real value of the financial assets, be helpful for during the process of reforming the commercial bank more accurately grasp the financial asset impairment may cause losses, better reveal the bank the use of resources.
4. The financial tools inside the watch outside the watch and presentation is as important as the disclosure. Financial tools presentation of financial tools enterprise standards require that the risk of more comprehensive and detailed information disclosure. They want in the financial and accounting reports will financial derivatives for trading in class and distinguish the hedging instrument class, fully reveal the nature of the derivatives, contract amount or nominal amount; Derivatives of maturity date, expiration date or contract execution day; Derivatives final fair value and other information. This is helpful to the users of financial statements in time, fully reflect the bank’s financial tools, especially financial derivatives business hidden risks, help to the users of financial statements on the financial tools to enterprise financial position, operating results and cash flows of the important influence degree, and then make a reasonable evaluation to make the right economic decisions.
To sum up, the financial tools standards can provide the understanding the balance sheet and off-balance-sheet financial tools to bank financial position, operating results and cash flow of information, help the evaluation and the importance of these financial tools related to the amount of future cash flows and may face the risk of commercial bank accounting goal in the emphasis on economic decision-making of the usefulness and, at the same time, can reflect the management authorities economic responsibility of performance of the accounting information.