Research On The Initiator's Accounting Issue In Asset Securitization

Since the development of Mortgage-backed Securities in the USA in late 1970s, asset backed securities have developed rapidly in the world.It also officially entered the actual operation stage in China in 2005.This caused our great efforts to construct and perfect relative accounting laws and regulations which have important influence on the program.According to the actuality,our National Ministry of Finance have promulgated the"Pilot Securitization of Credit Asset Accounting",Enterprise Accounting Standard No.23"Financial Assets Confers"and so on.The pilot standards mainly aim at accounting process of credit asset securitization.Some concrete rules are also worth discussing.Because the initiator is in the core position of the entire securities course,the thesis researches from the initiator's angle.It gives a comprehensive and systemic introduction to present research of FASB and IASC,and makes a comparison of internal and external regulations.The paper also uses the"Jian Yuan first issue of residential mortgage backed securities of construction bank in 2007"as a example to carry a concrete analysis on initiator's accounting recognition, accounting measurement,consolidation of SPV and disclosure of accounting information.This article is divided into six chapters:The first chapter begins with the background and the significance of this article,it introduces the basic theory of Mortgage-backed Securities and the accounting problems caused by special transactional structure,and it reviews domestic and foreign research on Mortgage-backed Securities Accounting,it also talks about this article's research method and the choosing of the case of Construction Bank 2007-1 residential mortgage backed securities.The article's main body starts from chapter two to five. The last two parts of every chapter are concrete accounting applying analysis of the Construction Bank 2007-1 individual housing mortgage loan,the considerations and suggestion of relative Chinese accounting rules respectively.The second chapter is about the initiator's accounting confirmation.Based on the introduction of basic confirmation theory,it mainly discusses the"real selling","guarantee financing"and different accounting confirmations in Risk-Reward Approach,Financial Component Approach and No Continuing Involvement.The third chapter talks about accounting measurement,firstly it introduces the elementary theory of accounting measurement, then analyses initiator's profit measurement under chapter two's three different accounting methods.Chapter four studies the question on consolidation of SPV.After discussing two viewpoints of SPV merge,it compares relative FASB and IASC rules. Chapter five is about initiator's information disclosure,after introducing elementary theory,it carries on analysis of FASB and the IASC,too.Chapter six includes conclusion of the full text,consideration and forecast of our country's Mortgage-backed Securities development.Because Mortgage-backed Securities accounting is still on the preliminary stage of in our country,and its applying period is relatively short,so the research productions are scattered.Therefore this article has some systematic characteristic, and the main innovations are:(1)It research accounting problems from the Mortgage-backed Securities initiator's angle,and different from other domestic studies it doesn't name all accounting treatment of partial participation Mortgage-backed Securities Accounting.(2)On accounting confirmation problem,this article takes our country's present confirmation of MBS for a mix system,discusses its possible conflict with the"substance over form"principle,it also suggests strict concept,uses sole standard system with other countries.No Continuing Involvement Method admits property divisibility, differently confirms realized and unrealized sales to match the risk and the reward shift with the control power change.It conforms to the MBS service requirement better,and can reflect its transaction reality more,so this article suggests using this method in judge of the property's terminal confirmation.(3)About accounting measurements problem,it states that present MBS accounting rules don't completely uses the fair value idea,and may cause departure from match and consistency principles.In addition,there are no rules regarding the following measurement,it suggests perfect relative principles and thorough implementation the best measurement pattern of fair value.About consolidation of SPV,author suggests further definition of Control Right concept,not a general no-operation instructional formulation.As to information disclosure problem,there are no special promulgates in view of the initiator risk disclosure,it is suggested that disclosure rules of credit risk of left assets in balance sheet should be further perfected.