| After the 2008 financial crisis,the original financial instruments impairment model,the incurred loss model,was criticized by all parties for its“too late,too little”confirmation of asset impairment.At the April 2009 summit of the G20 in London,leaders proposed to strengthen the cooperation between financial supervision and accounting standards in the future to jointly develop an effective accounting standard for financial instruments.Under the joint efforts of many parties,the IASB and the FASB launched the financial instruments accounting standards reform project.After six years,the accounting standards setters and the financial regulators continued to cooperate,and finally the IASB officially released IFRS 9 in July 2014,proposing to replace the incurred loss model with the credit loss model.On January 1,2018,the expected loss model was officially put into use.In this context,this paper systematically combs the financial instruments impairment model from norm-setting to practical application,explores the internal reasons of accounting standards and financial supervision cooperation and conflict,and analyzes the role of credit loss model in financial supervision.Finally this paper will provide guidance for how the two sides will coordinate and cooperate in the future.There are some conflicts between financial instruments impairment accounting standards and financial supervision.The harmonization lies in the fact that the impairment of financial insturments is in line with the requirements of accounting principles and on the other hand,it also satisfies the demands of financial prudential supervision.The conflict lies in the fact that accounting information pays more attention to the faithful representation,and the goal is to reflect the true economic value of the asset.Financial supervision emphasizes prudence and reduces the value to achieve risk prevention and stable operation.The two objectives are different,and there is no right or wrong in the focus of accounting information quality requirements.This paper argues that the introduction of IFRS 9 represents a compromise in the direction of financial regulation.However,in view of the current implementation of the expected loss model.,the model can indeed increase the bank’s reserve adequacy.making financial regulatory indicators more cautious.At the same time,however,the lack of uniform specifications for the use of new models by banks has led to a reduction in the comparability of accounting information and an increase iin the difficulty of financial regulation.For the practical application of the expected loss model,the accounting standards makers and financial regulators should continue to cooperate on the basis of maintaining their respective independent types,and conduct unified regulation and guidance on the application of each bank model. |
