Research Of Accounting Problem Of ABS

Asset-backed securitization (ABS) is a kind of structure-financing, which emerged in the USA in the early of 1970s. With the development of finance innovation technology, ABS merges with derivative financial instruments, which make their external forms complicated, has developed rapidly all over the world. China has also been making experiment of ABS in recent years.Whether the financial aims can be achieved or not will be reflected through accounting finally, so the accounting treatment of ABS is very complicated and important, and it's necessary for China to frame an accounting standards system.As the sponsor is the core of the whole business, its accounting treatment is also most important. So we made the accounting treatment of sponsor as our main study subject. After discussing the fundamental theories of ABS, and on the basis of analyzing and comparing the foreign relevant ABS accounting standards, this paper analyzed the relevant ABS accounting standards of our country, and also analyzed the accounting treatment of the experiment of China Construction Bank.The paper includes five parts:Chapter one discussed the significance of the subject briefly as an introduction.Chapter two discussed the fundamental theories of ABS, including its definition and development, significance and effect, trade structure and so on. The keystones are the significance of the ABS to its sponsor and the issue about true sale.Chapter three discussed the foreign relevant ABS accounting standards, mainly the SFAS and IAS, and compared the same and different points between them. The discussion focused on two aspects: the first is the accounting recognition and measurement, they correspond closely. The paper discussed three approaches respectively: Risk and Reward Approach, Financial Component Approach, Continuing Involvement Approach, and appraised them; the second is the consolidation of financial report and information disclosure. Chapter four analyzed the development of relevant regulation and standards of China, mainly the "pilot securitization of credit assets accounting" and the Accounting Standards No.23 "financial assets transfer" ,discussed the accounting treatment of ABS ,also including accounting definition, recognition, measurement ,consolidation of financial report and information disclosure . The paper appraised them and compared the same and different points between them at the end of the chapter.Chapter five introduced the service asset and other financial instruments and their accounting treatment, according to relevant regulation and standards discussed above, and then analyzed the accounting treatment of the experiment of China Construction Bank.