Study On Accounting Confirmation And Measurement Of Shenzhen Energy Perpetual Debt

In 2013,Wuhan Metro Corporation successfully issued renewable corporate bonds,and perpetual bonds officially entered the domestic financial market.As a compound financial tool,perpetual bonds are increasingly favored by enterprises due to their advantages of large funds raised,optimized capital structure,and no decentralization of control rights.Since perpetual bonds have both equity and creditor’s rights attributes,there is a certain degree of difficulty in the classification of accounting attributes,and the different classification of accounting attributes will have a certain impact on the issuer’s enterprise,creditors,shareholders,and the public.On the one hand,this thesis starts from the theory and concepts.First,through the reading of domestic and foreign literature on perpetual bond accounting confirmation and measurement,it sorts out the literature on perpetual bond accounting confirmation and measurement that mostly concentrate in the real estate industry and construction industry.Taking this as an entry point,this thesis chooses Shenzhen Energy as a case company,which is an electric power company,in order to provide a reference for the confirmation and measurement of perpetual bonds in the electric power industry.Secondly,this thesis expounds the concepts of perpetual bonds,equity instruments and financial liabilities,and finally expounds the development process and theoretical significance of trade-off theory,stakeholder theory and economic consequence theory.On the other hand,starting from practice,Shenzhen Energy was selected as the case company,and the case of Shenzhen Energy’s perpetual bond accounting confirmation and measurement was based on the status of industry perpetual bond accounting confirmation and measurement,corporate issuance motivation,corporate perpetual bond accounting confirmation,and corporate perpetual bond accounting confirmation and measurement.Detailed analysis and elaboration on renewal of debt accounting measurement and the resulting financial impact.Through analysis,this thesis finds that first,the accounting confirmation and measurement of perpetual bonds will have favorable and unfavorable effects on the financial aspects of the company.For one,it can increase the long-term solvency of the company,enhance the profitability of the company,increase shareholder wealth,and improve the capital structure.For another,it will cause the enhance of corporate cash flow pressure and the disadvantage of losing the interest tax shield effect.Secondly,this thesis finds that perpetual bonds,as a compound financial instrument,have certain difficulties in distinguishing accounting attributes.Therefore,it is necessary to pay attention to economic substance when confirming and measuring them.Once again,this thesis finds that companies and related personnel do not have enough knowledge and do not pay enough attention to the risks that may be caused by the confirmation and measurement of perpetual bonds,so relevant personnel should strengthen their understanding.Finally,it is found that there are areas that need to be improved in my country’s financial instrument standards to enhance the flexibility and adaptability of the standards.