The Application Research Of The Commercial Bank’s Financial Asset Impairment Model

Financial instruments in the social and economic activities play a more and more important role, but due to the kinds of diversity and complexity of the financial instruments, confirmation and measurement of financial instruments standards formulation has been plagued by academic circles. Especially in the 2008 global financial crisis broke out and caused serious consequences, the social from all walks of life is generally believed that financial market regulation and the lack of international accounting standards, the existence of defects is main cause of the crisis, from the review we discover not hard, continuous economic development, guidelines to continue improvement, standards lag of economy-how much force. 2010 China’s Ministry of Finance issued the China enterprise accounting standards and international financial reporting standards for the continued convergence of the road map, the international convergence of China’s accounting standards outlined a timetable. In July 2014, the international accounting standards board (IASB) released the final version of the IFRS9 financial instrument, which is the main content of the reform of China’s accounting standards. The financial assets expected loss model has initially formed, is not a country specific implementation of this model, but the future of international use "expected loss model measuring impairment is a foregone conclusion, enterprise accounting standards of our country is in and international financial reporting standards convergence stage, the expected loss model of the measurement of the impairment loss is inevitable trend. It is very important to strengthen the research on the theory and application of the expected loss model, and to promote the application of the financial instrument in the financial field. This paper mainly adopts normative research method, combining the Case simulation, comparative analysis of the issue of impairment of financial assets research, and combined with the latest international research results, difficulty analysis, puts forward personal opinions.This thesis is divided into six parts, including the introduction. The first part is the introduction. This part briefly elaborated under the background of the reform of accounting standards, the need for attention and Research on impairment of financial assets model. It is pointed out that the research background, research significance, research ideas and research methods. The second part is the research foundation. This part introduced relevant requirements of the relevant theories of financial assets and financial impairment and characteristics of bank business and accounting standards setting, reviewing the present situation of the research on the domestic and foreign financial assets impairment loss model, summarized in the current model of Chinese and foreign research emphasis and problems. It is pointed out that the difficult problem of current accounting standards formulation and implementation of the face. The third part is the application of the current model. This part mainly expounds the evolution of asset impairment accounting, emphatically the impairment of financial assets model credit impairment model, economic cycle dynamic impairment model, fair value impairment model, the impairment loss model using status of research and analysis and on its rationality and limitations of objective evaluation. The fourth part is the expected loss model and its simulation application. Background of the introduction of this part of the expected loss model are analyzed, focusing on the principle of expected loss model are described, and with our current model has occurred in the model are analyzed and compared, objective presentation of their respective characteristics. In this part of the paper, the simulation cases are used to simulate the operation, and the data is used to analyze the expected loss model. The fifth part is the expected impact of the application of the expected loss model and countermeasures. On the basis of the analysis of the impact of the expected loss model, we put forward the corresponding countermeasures. The sixth part is the conclusion, the main writing personal papers and the summary of the thesis and the shortcomings of this paper.Through the analysis of the expected loss model theory and simulation case, the author thinks that although the expected loss model are smooth business profit and loss, effectively alleviate the incurred loss model of Pro cyclical theory advanced, but according to China’s actual conditions and specific capital market, financial system exists the lack of speaking, the expected loss model we want to take a cautious attitude, the pilot and the promotion of the buffer directly by expected model "one size fits all" model may bring a "flawed".The innovation of this paper is mainly follow the latest developments in international accounting standards published by the international accounting standards board, impairment of financial assets to model the expected loss model, respectively, its theoretical basis, application status, case simulation were elaboration and the analysis, and the China asset reducing value accounting model application put forward their own ideas for the improvement. But there are still many deficiencies in this paper, mainly in two:first, the difficulty of obtaining information. Limited to the understanding of the model of the impairment of financial assets is confined to the theoretical summary, the bank practice no in-depth investigation to the impairment of financial assets model using real operation performed better understanding, so the exist defects in the depth of the research questions. Second, we build the impairment of financial assets model simulation, due to the complexity and data information of lack, can not find the real case simulation, for the practical application of the difficulty can not be expected, only from the ideal model of ideal data simulated, and the practical operation of skew the results, greatly reduced the degree of.