The Reseach On Accounting Treatment Of Internalizing Off-balance-sheet Financing

Since the 20th century 70's, off-balance-sheet financing has been developmented rapidly, not only complexity in the form, but also accounts for the increasing proportion in enterprise's financing structure。From accounting practice point of view, many enterprises have already used off-balance-sheet financing as a tool to plaster financial report, this enormously influenced accounting information quality for user's correct decision-making. Therefore, various countries' accounting standard setting body invested the massive manpower and physical resource to internalize off-balance-sheet financing. Off-balance-sheet financing has aroused accountant's widespread interests especially after Enron event. Under such background, without doubt,the topic of internalizing off-balance-sheet financing has significant theory and practical significance. This article take the off-balance-sheet financing within the financial report as primary intention, first introduced the connotation and the extension of off-balance-sheet financing, then gave internalizing off-balance-sheet financing a definition, mainly from three aspects to reason why should internalize off-balance-sheet financing: (a) the structure of financial statement and nature of off-balance-sheet financing;(b) overload and obscure of the accounting information disclosure;(c)internalizing off-balance-sheet financing strengthens function of the financial statement in other market besides the stock market . Although IASB, FASB, ASB and Ministry of Financial have already yielded the gradual complishment in internalizing off-balance-sheet financing, it is necessary through to construct high standard accounting criterion, reduced possible selectivity of the accounting policy, and fully considering accounting standard economical consequence to perfect the internalizing off-balance-sheet financing achievement. At the same time, internalizing off-balance-sheet financing also has many difficult problems in the recognition and the measurement, including whether Executory Contract should be recognized, how to use the principle of substance over form, how to derecognizing the financial instrument property involve off-balance-sheet financing, measurement attribute choice in accounting measurement. Accounting world has already made the significant progress in these questions, but it still has a long way to go. This article also through to ponder existing lease accounting, considering accounting world should use"the right of use law"to capitalize the significant operating lease; Accounting recognition of transfer property attaches the condition is a practice utilization of derecognition. Finally, the article analysis present situation and development to domestic internalizing off-balance-sheet financing, in the foundation of new accounting standard which Ministry of Finance promulgates, put forward the corresponding proposal.