Research On The Revision And Implementation Of Financial Asset Impairment Model Based On The Basel Accords

The 2008 financial crisis exposed the material defects of global financial systems, incurred losses of financial assets suffered severe criticism for its hysteresis quality and pro-cyclicality on recognition of impairment. Afterwards, "Basel ?" released, reflecting the new financial supervision thinking which combines micro-prudential with macro-prudential. Under the urgency of G20 and FSB, IASB and FASB launched financial instruments accounting standards and other joint convergence projects. In July 2014, the releasement of IFRS9 put forward expected credit loss model to replace occurred loss model. Hence, this paper carries out research on the revision and implementation of financial asset impairment model based on the Basel accords, which has great theoretical and practical significance to the coordination of financial regulatory standards and accounting standards, and to the achievement of continually converging with international accounting standards.Provision impairment of financial assets is not only the inherent requirement of accounting objectives, but also the requirement of financial prudential supervision. Expected credit loss model take the requirement of financial prudential supervision into account, and improve problems that exist in incurred loss model, but whether it truly solve the problem needs time to verify. Both models have its practicability, incurred loss model pay more attention to the present, which in line with theoretical basis; Expected credit loss model can reflect the future better with high transparency. The two models also have some problems, compared with incurred loss model, expected credit loss model has some theoretical and technical problems and higher implementation cost. Both models are the products of the development of economic society, there is no right or wrong to choose either; the key is to meet the needs of financial market environment.This paper argues that, in consideration of Chinese current marketing environment, financial assets measured at fair Value through other Comprehensive Income should continue use the incurred loss model; gradually promote the implementation of expected credit loss model from the perspective of receivables; for the loan, continue use incurred losses model and disclosure subjective information such as expected losses in the notes of financial statements at the same time. In the view of the complexity of financial system, introducing expected credit loss model inChina is not a simple accounting technology problem, but a system engineering, not only need reconstruct accounting standards system, but also make it continually converging with the international accounting standards to adapt the requirement of financial prudential regulation.