Accounting Research On Credit Asset Securitization In China

Credit asset securitization business is an important financial innovation on Chinese capital market. The pilot of credit asset securitization was set up in2005, since then, the securitization business continues to grow and gains growing influence on the market. In2012, the credit asset securitization pilot restarted and was given a scale of50billion Yuan. And the State Council executive meeting decided to expand the scale of the pilot of credit asset securitization on August28,2013. In the future, the business has broad prospects for development.The main innovation of credit asset securitization business is "true sale" and "bankruptcy remote"; these two issues are closely related to accounting recognition. True sale involves the derecognition issues on financial asset transfer. And on the basis of true sale, if bankruptcy remote is to be achieved, special purpose entity shall not be incorporated into the consolidated financial statements of the sponsoring agencies. Thus, the accounting recognition has a crucial role in the smooth development of credit asset securitization business. IASB and the U.S. FASB revised the guidelines for asset securitization accounting issues for several times. Since the credit asset securitization pilot was launched in2005, the Ministry of Finance has issued the "Accounting Treatment Provisions of the Credit Asset Securitization Pilot" and "Accounting Standards for Business Enterprises" to regulate the relevant accounting issues.First, this dissertation raises the background and significance of the accounting research of credit asset securitization, and related literature review of this research, thus forming the theoretical basis of this study. Thereafter, this dissertation analyzes the definition and characteristics of credit asset securitization, summarizes the basic processes of the business, sums up the development and the status of the business in our country and brings up the relevant accounting issues. Next, on the credit asset derecognition issue and special purpose entity consolidation issue, domestic and international asset securitization related accounting standards are summarized and evaluated in this dissertation, and this dissertation analyzes the practical application of accounting standards in the credit asset securitization, thereby makes recommendations to improve accounting requirements. This dissertation argues that the current accounting standards of credit asset securitization do not facilitate the practical operation, and the rules need to be further improved and refined.