Research On Asset Securitization Accounting Problems For Enterprises

In 2005 pilot work of the Secuntization of Credit Assets were officially launched in China. With the steady and healthy development of asset securitization in 2006, fruitful results have been yielded in the domestic financial market. In 2007, People continue to make China's asset securitization market more normative and continue to expand the scale of development. Experts predict that amounts of products for China's asset securitization will break through 100 billion yuan in 2007. In this environment, studying asset securitization accounting problems is vital to the promotion of China's asset securitization development. This thesis analyzes the accounting recognition, measurement, disclosure and consolidation about the asset backed securitization according to financial accounting theory. At last, the author puts forward some suggestions on accounting for asset securitization in the current situation. This thesis is divided into six chapters:The first chapter is an introduction. The author generally describes the background and significance of this thesis, research profile of the domestic and international asset securitization accounting problems, research ideas and research methods of the thesis and the structure and content of the thesis.The second Chapter is general theory of asset securitization. First, it presents the definition and process of asset securitization. Then it gives an illustration of accounts receivable asset-backed beneficiary certificates of China Network Communications Group Corporation to clarify the process of asset securitization for enterprises. Moreover illustrates the significance of developing asset securitization in China, mainly from the significance to the financial market, the banking sector and enterprises.The third Chapter is accounting recognition of asset securitization. This chapter is the focus of this paper. Firstly, recalls the related accounting recognition prescription of the FASB and IASB. It's generally believed that the controversy on recognition of asset securitization is attributed to if the risks and rewards related to the securitized asset have been truly transferred. IASC and FASB have researched tirelessly on this problem. So far there are three modes, these are Risk and Rewards Approach, Financial Component Approach and Continuing Involvement Approach. At the same time some methods of termination recognition are evaluated. It should be noted: the above methods are not opposite each other. Secondly, on the basis of above discussions accounting recognition of asset securitization is analyzed. Moreover we should timely adjust the existing norms according to the reality of our country.The fourth Chapter is accounting measurement of asset securitization. The author analyzes accounting measurement of Risk and Rewards Approach, Financial Component Approach and Continuing Involvement Approach correspondingly. Then reviews accounting measurement prescription of FASB and IASC. Furthermore, analyzes and evaluates the related regulations of "Accounting Treatments for the Securitization of Credit Assets" and "Accounting Standard for Business Enterprises No.22-Recognition and measurement of financial instruments" in China.The fifth Chapter is information disclosure and consolidation of asset securitization. The study on information disclosure and consolidation of asset securitization of FASB and IASB is highlighted. The author believes that we should disclose the specific information on asset securitization transaction to ensure that the main stakeholders can determine the risks and benefits of asset securitization transactions according to their own needs, help statement users identify and evaluate the risk of confirmed or not confirmed.The sixth Chapter is several thoughts over carrying out asset securitization in our country. This chapter puts forward proposals to improve accounting standard of the current asset securitization, which are about the transferor's recognition of the securitized asset, consolidation and credit evaluation system. Finally, the author point out some limitations of the paper when making an summary.