Research On The Changes And Effects Of Ping An's Asset Allocation Plan Under IFRS9

In order to achieve accurate classification of various financial instruments and improve the accuracy of financial instrument impairment measurement,after continuous adjustments and modifications,the International Accounting Standards Board(IASB)issued the International Financial Reporting Standards No.9 in July 2014.—Financial Instruments "(hereinafter referred to as" IFRS9 ")to replace International Accounting Standards 39(hereinafter referred to as" IAS39 ")and require mandatory implementation from January 1,2018.The most significant difference between IFRS9 and IAS39 is that the classification of financial assets has changed from the original " four classifications " to " three classifications " and the impairment treatment of financial instruments has changed from " incurred loss models " to " expected credit losses " model".These two significant changes have a huge impact on insurance companies in which financial assets have an absolute advantage over total corporate assets.Therefore,the International Accounting Standards Board also stipulates that the insurance industry is allowed to postpone the implementation until 2021.The subject of this article is Ping An Insurance Group Co.,Ltd.(hereinafter referred to as "Ping An of China"),but decided to adopt IFRS9 in advance on January 1,2018,and the remaining large domestic listed insurance companies have decided to postpone the implementation until 2021.Affected by IFRS9,Ping An's asset allocation has experienced unprecedented changes.Therefore,research on the first domestic insurance company that adopted IFRS9 in advance,namely Ping An of China,what kind of changes have occurred in its asset allocation,what is the relationship between this change and the adoption of IFRS9,and how effective is the new asset allocation scheme? Not only is it useful for insurance companies that have not yet adopted IFRS9,it is also beneficial to discover problems encountered in the implementation of IFRS9,so as to improve and optimize IFRS9 in order to achieve the maximum benefit of corporate accounting standards.Based on a lot of reading about IFRS9-related literature,it summarizes the current research status of IFRS9 in academic circles: it mainly focuses on the similarities and differences between IFRS9 and IAS39,the background and significance of IFRS9's promulgation,and the predictability of the applicability of IFRS9 at the theoretical level Evaluation,etc.,and lack of factual analysis using specific cases.Therefore,this article decided to use the case analysis method to write the thesis,taking the specific factual case of Ping An of China as the research object,and explore the actual impact of IFRS9 in advance on China's insurance companies.The study found that:(1)After the adoption of IFRS9,China's Ping An's equity assets,bond assets,and alternative investments have undergone major changes in the allocation structure of financial assets.In general,assets are mainly invested in large-scale listed banks and real estate industries with stable development and good returns.And bonds with higher credit ratings and lower yields.It shows that the new accounting standard "IFRS9" forces insurance companies to avoid radical and high-risk investments.The investment style returns to "conservative".The investment pays more attention to the matching of assets and liabilities,which is conducive to protecting the rights of creditors and shareholders.(2)After the implementation of the new asset allocation plan,investment risks are reduced,investment returns are improved,and short-term market response is better.In order to cope with the adverse impact of the new standard IFRS9 and the old standard IAS39,Ping An has chosen a correct path,which is a correct test strategy tested by the market.(3)Under IFRS9,China Ping An's available-for-sale financial assets "reservoir" role disappeared,more "floating profits and losses" were eliminated,and the handling of asset impairment was more cautious and forward-looking.This case further proves that IFRS9 is more authentic,prudent and comparable in the quality of accounting information of insurance companies than IAS39.Regulators should encourage other insurance companies to implement IFRS9.