Evaluation Of The Value Of Non-performing Creditor's Rights Based On Hypothetic Liquidation

Non-performing assets can be divided into three categories: investment assets,creditor assets and physical assets.More than 70 percent of these are creditor assets.For the real assets and equity assets in the non-performing financial assets,it is generally possible to evaluate the assets according to the regular evaluation procedure.As for the creditor's rights,the creditor's rights and liabilities are not clear,and most of them are bad debts that can not be settled due to the long term purchase and sale business transactions.How to dispose of these bad creditor's right assets effectively and dissolve the risk is extremely important.Asset management companies deal with non-performing financial assets mainly in the form of debt recovery,asset replacement,transfer and sale,debt restructuring,enterprise restructuring,debt transfer,debt transfer,bankruptcy and so on.At the heart of all these disposals is the pricing of assets.Its basic reference basis is the appraisal opinion issued by the asset appraisal industry.Therefore,the true and reasonable evaluation results are the basis of the pricing.However,up to now,there are few achievements in the research of the theory of non-performing creditor's rights,which can not meet the urgent need of practice.The existing methods for evaluating the nonperforming creditor's rights have their own limitations,the preconditions for their application are very strict,and the practice guidance is not strong.Therefore,it is an effective method to explore the value of non-performing creditor's right from the theory of asset assessment.In the practice of financial non-performing asset valuation,there are four common methods.Among them,the transaction case law is more complicated when adjusting the parameters because the domestic practice of evaluating the value of nonperforming assets is not standard.And because the parameter adjustment is qualitative analysis,the subjective factor will have a great influence on the adjustment result,so it is less used in practice.Experts do not see much in assessment practice.The level of experts in the process of its use,the scientific classification of tables,multiple evaluation of the subjective human nature will have a greater impact on the final evaluation results.The analysis of the various financial indicators of the credit valuation method is based on the financial statements and related information provided by the debtor.In practice,the debtor may provide false financial statements to the evaluator for self-serving purposes.This risk is amplified by the reliance of the credit valuation method on the financial statements and data provided by the debtor,which limits too.This paper focuses on the problem of the evaluation method of non-performing assets of creditor class,and analyzes the existing methods of evaluating the value of non-performing assets of creditor class and their existing problems.The value of nonperforming claims is accurately assessed by the hypothesis of liquidation.This paper focuses on the evaluation method of non-performing assets of the creditor class and analyzes the existing methods of evaluating the value of non-performing assets of the creditor class and their problems.The application scope of the liquidation method is assumed to be the situation of the enterprise under the conditions of non-sustainable operation and the situation of small or irregular cash flow.However,the method may not be based on the assumption that the liabilities of the creditor class and the assets of the creditor class are effectively and effectively liquidated.In particular,the actual operating time points are often not the same as the assumed time points,which will result in significant changes in assets and liabilities,resulting in significant changes in the actual and assumed amounts.Through the application of the hypothetical liquidation method,we hope to provide a new way of thinking and perspective for the system of non-performing assets assessment.