Study On Accounting Problems Encountered By Sponsor Of The Financial Asset Securitization

As one of the means of financing, asset securitization is evident to be a kind of innovation in finance, which is very much difference from traditional financing means. In the seventies of the twentieth century, asset securitization originated from America and has been greatly developed since then. Currently, products which issued in the area of asset securitization have been the largest fixed income securities in American capital market. In addition, the business of asset securitization has achieved much development in some major countries in Europe and Asia. In China, pilot asset securitization has begun in 2005 and under the lead of government; the business has achieved a great development in these years.In the accounting field, the two main accounting standards setting body are namely FASB (Financial Accounting Standards Board) and IASC/IASB (International Accounting Standards Committee/ Board) have both published and revised standards over times regarding accounting for asset securitization. The accounting for the transfer of financial asset and the consolidation of SPV (Special Purpose Vehicle) have always been critical points for standard settings as well. However, there are several differences in the point of views from these two most prominent accounting standards setting bodies. In 2006, the Chinese Ministry of Finance issued CAS No.23 - Accounting for the Transfer of Financial Asset, which almost accepted all the views of IAS 39 (revised in 2004). The aim of the dissertation includes; firstly, to analyze and evaluate the views of FASB and IASC/IASB in these two problems, secondly, to evaluate the views accepted by Chinese accounting standards. Following, the dissertation will come up with a more reasonable accounting method.The structure of the dissertation is listed below :-Chapter One: Introduction.The main content of the introduction is to detail the research background and motivation of the dissertation. At the same time, this chapter also points out the contributions and limitations of the dissertation.Chapter Two: The Introduction of Business of Asset Securitization—Combined with American Institutional Background.This chapter introduces the transaction structure of Asset Securitization. Key factors and main related entities in the business of asset securitization are discussed in brief, based on the analysis and the definition of the asset securitization. Next, the author introduces the history of American asset securitization and also concludes some important characteristics embodied in the asset securitization history. From the author's point-of-view, he believes that it is useful to understand the evolution of the theories concerning accounting for financial asset regarding the implication of FASB when one masters the necessary characteristics.Chapter Three: The Development and Interpretation on the Accounting of Sponsor for Financial Asset Securitization.This chapter emphasises the central argument of the dissertation, Financial Asset Securitization. Several main factors and tasks are included. Firstly, the need to analyze and compare among the several accounting standards in asset securitization set by American accounting standards setting body in different periods; Secondly, the need to analyze and compare among the different versions of IAS 39 set by IASC/IASB; Lastly, to develop a more reasonable accounting method based on the analysis and comparison of the most updated views advanced by the FASB and IASB.Chapter Four: The History and Status quo of Asset Securitization in China.The chapter reviews the three stages in the history of Chinese asset securitization. The chapter stresses the importance on analyzing institution supporting the pilot program of asset securitization in China. The author continues to introduce the Status quo and the characteristics of asset securitization in China.Chapter Five: Research on the Accounting Problem of Sponsor for Chinese Financial Asset Securitization.Firstly, the author reflects on the research done on the accounting for asset securitization in academe. Secondly, several important official accounting literatures are introduced. Based on the above, the author comes up with several arguments and suggestions. Lastly, the author compares the three different kinds of views concerning accounting for asset securitization in a case-study.