Research On The Accounting Measurement Of Money Market Funds In China

Money market funds occupy a very important position in China's financial sector.However,the prosperity of money market funds has huge risks.According to public reports,many money market funds triggered a large or small liquidity problem when the market interest rate fluctuated wildly,driven by the goal of maximizing revenue.Accounting measurement plays a significant role in money market funds investment operation.Unreasonable accounting measurement can make the fund managers tend to use aggressive investment strategy to achieve the maximum profit,causing a run of the single fund risk,and even affect the stability of financial markets.The financial theory field has a lot of research on money market funds,but there are few relevant literatures in the field of accounting.Accounting theory,especially accounting measurement theory,can play an important role in the benign development of money market funds.In view of this,this paper decides to find out.This paper uses the literature review method to study the relevant theories of accounting measurement,and extracts the theoretical points related to money market funds.By analyzing the dual nature of money market fund,the rationality of its mixed measurement model is discussed.This article also uses case analysis method,based on a relatively typical of money market funds statistics and calculation,the public disclosure of information and analysis of the appropriateness of the amortized cost measurement,ultimately derive the problem of money market funds accounting measurement in our country.How to choose accounting measurement method,relevant regulatory documents have clear provisions.However,due to the lack of more detailed provisions,accounting measurement still has many areas to improve on the executive level.Aiming at the existing problems of money market funds accounting measurement,fund managers should keep the right product position of money market funds,truly have the bonds held to maturity,in order to meet the requirements of the amortized cost measurement and then radically reduce the risk of a run.In addition,fund managers still should abandon too aggressive investment strategy,and reduce a single investor's biggest holdings,to avoid individual investors in the market interest rate fluctuations produce huge redemption,which cause the amortized cost measurement results and the fair value measurement results exist too big difference,and make investors mistrust of the accounting measurement results.Meanwhile regulators should require fund managers to disclose their management of monetary market fund is in line with the analysis of the amortized cost measurement,and require certified public accountants issued by the relevant audit opinion,and third party funds evaluation mechanism design evaluation system,specialized in the stable operation of the orientation of monetary market fund.