Research On Accounting Treatment And Disclosure Of Structured Entity

In 2014,the Finance Ministry put forward to the structured entity for the first time in the accounting principles for enterprises,which attracted attention from all sides.The original edition of this concept is entity with special purpose,which was originated from the United States in the 1970s.After the Enron incident,it gradually altered into entity with variable interest.Finally,the international accounting principle gave a new name,the structured entity.Most of the forms of subjects with structure in China are financial products,such as bank financial products,asset-backed securities,funds,and so on,which are regarded as accounting subjects for accounting,and there are many difficulties in accounting treatment and disclosure.The irregular operation of many enterprises makes fraud occur frequently in financial field.In order to regulate the operation of institutions and reduce financial risks,government issued new regulations on capital management in 2018.Therefore,it is of great significance to study the accounting treatment and disclosure of subjects with structure for the establishment of a healthy and orderly financial environment.Firstly,the paper introduces the basic situation of this study and integrates the related research results,then analyses the definition and characteristics of structured entity,special purpose entity,variable interest entity and investment entity,and takes the financial management product and the mixed capital management product as an example to explain the concept of the structured entity above and the impact of new asset management regulations on merger.The key to the combination of the structured subject is whether the merging party reaches the actual control,the initial confirmation,subsequent measurement,and the combination processing of the structured entity are determined by the type of subject's financial instrument,and the new rules of the capital management have also put forward special requirements for its measurement methods.Through the analysis of the disclosure requirements of the structured entity and the disclosure of the listed companies in the banking industry,it can be noted that there are still major defects in the current information disclosure.Finally,puts forward some suggestions on the current situation,advocates changing the way of concept expression,clarifying accounting treatment methods,improving accounting information disclosure,and improving the new rules.