| In 2017,the Ministry of Finance issued Accounting Standard 22 for Enterprises-Recognition and Measurement of Financial Instruments.One of the key adjustments in the standard is to introduce the expected loss impairment model of financial instruments instead of the impairment loss model,which will be implemented in China’s financial field in 2019.The main difference between the expected loss impairment model and the existing loss model is that the expected loss impairment model does not need to be triggered by objective evidence of impairment,and the anticipated credit loss in the future should be considered when calculating the real interest rate.Taking the great change of the impairment model of financial assets as an opportunity,this paper uses normative research methods and basic theory as a starting point to analyze and discuss the development of financial instruments in impairment treatment,which can better understand the essence of impairment,improve the quality level of accounting work,and make the construction of theoretical system more perfect.From a practical point of view,commercial banks are an important part of China’s financial system.Paying attention to the accounting adjustment policies in the financial field and studying the changes of expected loss impairment model can alleviate the dilemma of case enterprises in dealing with impairment of loans to a certain extent,and draw a conclusion that the implementation of the new model requires changes and construction of new mechanisms,as well as continuously improving the efficiency of financial instruments.Level provides impetus to enhance he scientific management level of commercial banks.As the expected loss impairment model is gradually implemented in China,the new model can be better understood and applied.Firstly,on the basis of explaining the theory and method of expected loss model,taking BD Bank as an example,through questionnaire investigation analysis,we find the problems existing in the current loss model of financial loans,including the lag of impairment calculation,the lack of accuracy of impairment measurement,the difficulty in coordinating the conflict between supervision and accounting standards.Secondly,taking BD Bank as an example,this paper simulates and applies the expected loss model under ideal and actual conditions,calculates the possibility of default of three-stage financial instruments,and calculates the relevant accounting treatment of impairment preparation according to the expected loss impairment model.Thirdly,combined with the results of accounting treatment,compared the new impairment model of anticipated loss and the old impairment loss model.It is found that the expected loss impairment model can reflect credit risk earlier,closer to the real default situation,smoothen current income,and smooth the amount of reserve withdrawal.Finally,puts forward relevant safeguards for financial institutions to apply the expected loss model better. |
