Research About The Impact On China Of IFRS9’s Change About The Classification And Measurement Of Financial Assets

With the integration of the world economy，International Financial ReportingStandards (IFRS) revised by IASB is widely used around the world. It has quicklybecome the goal of Accounting Standards International Convergency. In February2006,China issued the New Accounting Standards (CAS), indicating that the convergence ofour criteria with IFRS9has completed. After the outbreak of the international financialcrisis in2008, leaders of the Group of Twenty (G20) accused that the financialinstruments accounting standards (IAS39) is difficult to understand, difficult to applyand difficult to explain. They urged the accounting standards setting boards to putfinancial asset classification and measurement issues as a top priority agenda, reformfinancial instruments accounting standards in all domains. They also proposed toestablish a global unified high-quality accounting standards, to improve thetransparency of accounting information, and to stabilize the global financial system andcapital markets. Under this premier, IASB started the project of “IFRS9: financialinstruments” quickly to actively formulate a new financial instruments accountingstandards to replace IAS39in its Entirety. November12,2009, IASB issued IFRS9asthe first step in its project. IFRS9has made significant reforms to the classification andmeasurement of financial assets.At the same time, to achieve the goal of establishing aglobal unified high-quality accounting standards, they accelerated the pace ofAccounting Standards International Convergency. In April2010, China also released "Aroadmap of the continued convergency of China Accounting Standards with theInternational Financial Reporting Standards”.It clearly stated that CAS’s futuredirection of construction is to keep convergence with IFRS on the basis of the currentconvergence results. IFRS9will go into effect in a couple of years, and it will be takeninto use in China sooner or later. Therefore, in order to carry out the work of theconvergence of China’s accounting standards with international standards, and promptlyimprove our criteria, we need to continue to closely track the dynamics revision ofinternational financial instruments standards, and study in depth of the related financialassets issues.This paper combs the historical evolution of the international financial assetsaccounting standards, reviews the road of convergence of our financial assets accounting standards with international standards. Then this paper study in depth of theIFRS9and take a comparative analysis of IFRS9and CAS22. This research can providea theoretical basis for this paper. This paper takes the financial listed companies inChina as samples to study the status quo of classification and measurement of financialassets on financial industry through statistical method. The statistical results show that alarge amount of financial assets held by the financial industry, and more companies areinclined to hold available-for-sale financial assets. Available-for-sale financial assetshave a very large impact on investment income, other comprehensive income andconsolidated income. This part of study provides a factual basis for this paper. Thispaper study the potential impact brings to our listed companies for IFRS9throughnormative research and empirical research methods. Theory, the author finds thatmeasurements of investments in equity instruments and a gain or loss on a financialasset that is measured at fair value are IFRS9’s main effect on Chinese financialindustry.This paper collects the annual report data of the25listed companies of thefinancial dindustry from2006to2011by hand, to study the classification based onIFRS9’s potential impact on the gain or loss and other financial information on financialindustry. The last part of the article is the strategic recommendations.