Accounting Research On Asset Securitization In China

Asset securitization is a financial innovation originated in the United States, which has irreplaceable advantages of other means of financing. It can improve the liquidity of financial assets, decentralize credit risk and reduce financing costs. It can also contribute to the financial institutions to strengthen the integrated management of assets and liabilities and improve the efficiency of financial assets. So, in the1990s, asset securitization rapidly expands globally and has had an important impact on the United States and the world’s financial markets. Although the asset securitization business in China started late, the country and companies have realized the advantages of this means of financing and they are making the ongoing attempt of a variety of asset securitization business.The development of asset securitization is linked with the economic environment, legal system, accounting system, tax system and many other factors. Compared with the booming Chinese asset securitization business, the asset securitization accounting regulations and guidelines appeared to be inadequate. So far, our asset securitization accounting norms is limited to a few scattered provisions, and has not formed a complete accounting system of norms. In order to ensure the healthy development of asset securitization business in our country, it is imperative to strengthen the accounting for asset securitization and improve asset securitization accounting theory.The paper is divided into six parts to introduce asset securitization accounting issues of our country:The first part is the introduction, which introduces the research background and significance, content and research methods as well as domestic and international literature review.The second part introduces the asset securitization theory. This section first describes the concept of asset securitization, as well as major types and analyzes the operation principle and characteristics of asset securitization. Then, this section describes the development process of asset securitization in China, and the asset securitization-related specifications. At last this section analyzes the impact of asset securitization on China, including the macro effects and micro effects.The third part is the recognition issues of asset securitization. This section first raises the question that the different effects of the real sales and secured financing on the financial situation of enterprises through a specific example. Then by introducing international confirmation models of asset securitization, leads to the confirmation of asset securitization in our country; Finally, this section analyzes the existing problems in the process of asset securitization confirmation and related proposals.The fourth part is the measurement issues of asset securitization. Then specifically introduce the measurement of continuing involvement assets and continuing involvement liabilities. Finally, introduce accounting treatment of asset securitization business through a specific case.The fifth part is the accounting information disclosure of asset securitization in China. This section sets out the importance of disclosure of information in the asset securitization, as well as the general principle of disclosure. And the suggestions based on our current asset securitization accounting information disclosed are proposed.The sixed part is the concluding remarks. This section sets out a brief summary of content and research results of this study, and points out the inadequacies of this article.