| Since1960s, asset securitization appeared in the US and spread in the world quickly, because of its better liquidity, dispersion of investment risks and low cost of financing. In2005, China began to public asset securitization of credit assets, but still in initial exploratory stage, and the asset securitization accounting research which is important to asset securitization is also still in initial exploratory stage, and related laws and regulation are not enough. China’s Ministry of Finance has public accounting of credit asset securitization pilot and Accounting Standards for Enterprises No.23Transfer of financial assets and promoting the capital market reform and opening and stable development of a number of opinions. However, these regulations are mainly for accounting and tax treatment of securitization of credit assets, and it still has some problem on special regulation of these regulations. In this paper, compare to international accounting standards, the relevant provisions of the U.S. Financial Accounting Standards and China’s regulations on the accounting treatment of asset securitization, and also take our current credit asset securitization pilot implementation into account, draw the conclusion of the way of accounting and tax about asset securitization. The case is jian yuan2007-1of China Construction Bank.This article is divided into six chapters, the detail content as follows:The first chapter mainly introduced the asset securitization research achievements of domestic and overseas scholars. That is the confirmation of accounting, measurement and the merger of financial statements of SPV. This paper use the measure of normative research, the case will be the combine of theoretical and practical study, do the theoretical analysis at first, and then analysis the operation of the case based on results of the case to make the conclusion more sufficient and reasonable. At the same time, by analysis the accounting and tax of asset securitization of CCB to demonstrate the effect of the measure which taken by Treasury. Because of asset securitization involves many financial derivatives, it need terminate confirmation, especially need pay the attention of accounting and tax treatment of SPV. At the same time, this paper introduces three international methods which widely adopted:risk and reward analysis method, financial synthetic analysis method, continuing involvement approach method. It also introduces the taxes of assets securitization. At present, our country should take one of the methods instead of mixed method, and asset securitization may involve in multiple taxation.The second chapter mainly introduces the basic concept of asset securitization, including general asset securitization and narrow asset securitization. This paper uses the concept of narrow asset. Securitization mainly divided into the sponsors, underwriter, special purpose institutions or the trustee of a special purpose, the main departments of the asset securitization use the different. Asset securitization originated in housing loan of the U.S, and rapid development in Europe and parts of Asia. Asset securitization is helpful to improve the liquidity and increase market investment and financing channel, scattered excess savings funds, reduce inflationary pressures, the its cost is low, improve the capital structure, raise capital adequacy ratio, and many other functions. When one need less money, the debt interest is low, the cost is low, the enterprise will use this way to gather money. As the amount of money one need increased, the debt financing costs also will increase, because the corresponding risk increases. Public stocks will be restricted by varieties terms which purpose is to protect shareholders’rights, also can be controlled by other investors. Generally speaking, the greater the money ABS gather, the higher quality of fundamental asset, it can reduce the ABS financing costs. At the same time, this part also introduces the way of accounting and tax treatment of assets securitization.The third chapter introduces the development and experienced of Europe and America asset securitization, and research accounting and tax treatment method of foreign asset securitization in this paper. The United States use Unit Banking System, regulates savings institution can’t do across state business. But in fact, if ban this, its capital supply and demand is hard to match. Because of the unbalance resource of The U.S and restricted of financial institution make the low effect of finance system. The appeal of housing mortgage-backed bonds ease the phenomenon, promote the financial industry operation efficiency. Mortgage securitization experience the housing mortgage-backed securities, Mortgage pass-through securities, housing mortgage-backed bonds, housing mortgage bonds or pay cash flow bonds. In Asia, after the Asia financial crisis, countries started to look for new way to gather money, Hong Kong, Thailand, Indonesia, use asset securitization as a way to raise money, developed quickly, style abundant is the main features of this period. With the development of asset securitization all over the world, all countries of the accounting and tax treatment is converging, the most influential accounting rule is FASB and IASC.The fourth chapter is about the asset securitization problem of our country, such as the restriction of accounting environment, the restriction of tax environment, legal environment incomplete, and the restriction of financial environment, the restriction of intermediary service, the restriction of supporting measures, etc. To solve these problems can strengthen the supervision and the control of risk, strengthen the screening and management, strengthen the intermediary institutions and credit system construction, innovation of asset securitization. The main objective of this paper is about accounting recognition and taxation. For now, our country takes risk and reward analysis method, financial synthetic analysis method, continuing involvement approach. But this may cause chaos and accounting arbitrage, we should determine the accounting recognition method as early as possible. The sponsors may face the tax dilemma, whether as sales or gather money will increase the tax or cost. Although China has many items to support SPV, but for promote the development of the financial products, our country should make a qualification of tax-free of the SPV. Our assets of the support bond mainly sales to institutional investors. Institutional investors do not need to pay for the income tax when get the interest of national financial bonds and treasury bill. But our country has not established any regulation to avoid income tax when we get the income of price difference and the interest of ABS. So, the tax regulation of our country is not perfect.Chapter5adopt jian yuan2007-1of CCB as an example to analysis ASB. Because Jian yuan2007-1use the real sales methods, improve the capital requirements for Banks. Assets from the balance sheet after removed, a reduction of its assets, so capital requirements will drop accordingly, the bank can spend more money for the operation of the business profits. The construction bank the operation belongs to the table the business, does not increase the issuer of debt. By the project, the CCB issues individual housing mortgages to support the scale of4.16billion Yuan bonds. This issue is not only a good example of asset securitization of China, also reduce the construction bank asset ratio, and promote the capital adequacy ratio, improve the liquidity of asset, and to reduce the risk of assets, and improve the period management of the construction bank. But in April,2010, because of small and medium-sized enterprise capital chain nervous, house prices rose, the cumulative default rate of jian yuan2007-1has been creeping up to0.72%. Plus, because in2008the central bank cut interest rates constantly, jian yuan2007-1the weighted average loan mortgage rates dropped form5.95%to4.3%in April,2010. The amount of Loan prepayment and rate directly affect the asset pool which pays cash to investor, the A grade bonds of jian yuan2007-1has not any deal. Therefore, China asset securitization still has a long way to promote.Chapter6is the conclusion, although China expanded the application scope of asset securitization by established new accounting standards and system; promote the development of asset securitization. But as the accounting recognition method was not sufficient and multiple tax increased tax of asset securitization. For the sponsors, asset income has to pay income tax, but lost of sales can’t reduce tax, it is against law of Tax Neutrality. For SPV, the income of security public, the cash of equity income pay by the debt have to pay for income tax, rights when the debtor pay by payment of cash to pay income tax. For investors, income of security investment has to pay for income tax. These show the serious multiple tax of asset securitization in our country. This does not favor the assets in healthy development of the explorative period. The main conclusions are:besides credit assets China is still needs to strengthen of the asset securitization laws and regulations; the transfer of control and pay transfer exist are difficult to quantify; should not levy five over ten thousand of the stamp duty tax. According to the problems, asset securitization in our country should be used when the correct accounting treatment, reduce the tax burden related party, issued and perfecting relevant laws; Improve the efficiency of capital market, strengthening the supervision and the construction of credit system, outstanding securitization innovation. The main contribution of this is:research and compared the asset securitization accounting methods and the different between the different methods may cause the results all over the world, and its application in China for its possible problems; Also studied the tax problem of different subject, our country’s tax police may lead to multiple tax and against the principle of tax neutrality.Due to the limited level, this paper is not perfect, which lack SPV and sponsors of the financial statements consolidate, we should continue to deepen the sponsors of the tax to study, etc.It is not long before asset securitization appeared in China, the type of asset securitization products is still not enough, the study and practice of asset securitization have great difficulties. Things about theory and practice introduced from foreign is abundant, but for China market environment, accounting treatment and tax issues of securitization are remain need further and comprehensive research, the relevant regulations need to be further revised and perfected. |
PDF Full Text Request