A Study Of The Economic Consequences Of The New Financial Instruments Standard For Non-financial Enterprises

In 2017,China issued a new policy on accounting,which requires most companies to implement this accounting policy by 2019.The impact of this policy is significant for the financial sector.At the same time,because the financial software type of industry also has many financial assets.So this policy also has a big impact on the financial software industry.The article uses a comparative approach and also gives an example of a company to increase persuasiveness.At the beginning,the article analyses how Sunyard went about using the new accounting policy and then analyses how the company will change or be different from the previous one after Sunyard has used this policy.One of the eye-opening points of this article is that it analyses something that has not been discussed much at home or abroad.Or,rather,that some incompetent and powerless circumstances have led to less convincing research.Another shining point is that the methodology used in this article is also very good.In many places the article uses a back-and-forth approach to the examples to prove it.For example,the article takes some values before and after the use of the policy to compare where it is the same and where it is different.At the end the article will say where the differences are and how they came about.The final part of the article is the conclusion,which answers how the new accounting policy has been implemented and how it can affect the company.The final conclusions are the following: firstly,the previous financial assets of the examples of companies studied in the article will become trading financial assets,which will affect the company’s profit.Secondly,the new policy requires that the reclassification of the previous assets has the consequence of increasing the company’s profitability.Finally,the new standard will increase the volatility of the company’s relevant assets.