First of all, the internationalization of financial accounting will change the traditional classification of financial assets and liabilities, and divide financial assets into transactional financial assets, held-to-maturity investments, loans and receivables, and available-for-sale financial assets; Liabilities are divided into trading financial liabilities and other financial liabilities. Once the classification of assets and liabilities is determined, it shall not be changed at will. This classification method can fully reflect the purpose and intention of commercial banks to hold financial instruments, and help report users to make effective judgments on risk management of commercial banks.
Secondly, the balance sheet items will be more abundant. According to the requirements of the Interim Provisions, an enterprise can only confirm financial assets or financial liabilities on its balance sheet if it becomes a party to the financial instrument contract. The conditions for terminating the recognition of financial instruments in the transfer of financial assets are: whether the risks and rewards related to the ownership of financial assets have been substantially transferred, and the control over financial assets has not been retained. According to these regulations, commercial banks should recognize various rights and contractual obligations implied in derivative products as assets or liabilities, and securitized credit assets and other financial assets and liabilities that do not meet the conditions for derecognition should also be accounted for in the balance sheet, so that the balance sheet will be richer in content and provide more comprehensive information.
Furthermore, the value of financial instruments measured at fair value changes with the change of fair value. On the one hand, the fair value of financial assets or liabilities is constantly changing, on the other hand, the change of fair value is included in the current profit and loss or equity, which further affects the change of equity. Therefore, when other assets and liabilities do not change, the fluctuation of the value of financial instruments will inevitably bring about the fluctuation of the asset-liability ratio. At the same time, the Interim Provisions put forward higher requirements for the impairment of financial assets of listed and quasi-listed commercial banks. Except for trading financial assets, the impairment of other financial assets adopts the "future cash flow discount method", which will aggravate the fluctuation of assets compared with the "five-level classification method".
Hedging clearly stipulates the accounting treatment of hedging activities, and sets strict requirements for the precondition of its application-hedging relationship. At present, there are few kinds of derivative financial instruments in China, and the hedging level of commercial banks needs to be improved, which makes it difficult to meet the conditions of using hedge accounting, so hedge accounting will not have a great impact on the balance sheet of commercial banks. The influence of internationalization of financial accounting on the profit statement of commercial banks
(A) the impact on the operating profit and loss of commercial banks.
According to the current accounting framework, changes in the economic value of financial instruments are recognized as income only when they are actually realized, which leads banks to conduct a transaction only to increase accounting profits. The Interim Provisions require that almost all financial instruments should be recognized in the balance sheet, and different measurement attributes should be used according to the purpose of holding financial instruments. Gains or losses arising from changes in the fair value of trading financial assets or financial liabilities should be included in the current profits and losses, while gains or losses arising from changes in the fair value of available-for-sale financial assets should be directly included in the capital reserve, thus curbing banks' manipulation of profits by changes in the value of financial instruments. The requirement that the accrued impairment reserve cannot be reversed also reduces the possibility of using impairment reserve to reverse and manipulate profits. The transfer of financial assets limits the derecognition of financial instruments, which means that the profits that commercial banks may recognize in advance will be less, and the space for adjusting income will be further narrowed.
(B) the impact on the profit statement of commercial banks.
The internationalization of financial accounting has also had an important impact on the traditional disclosure method of income statement. The traditional income statement recognizes income, cost, gains and losses according to realization principle, and the use of fair value measurement attributes, especially the on-balance-sheet recognition of derivative financial instruments, will inevitably lead to a large number of unrealized gains or losses. Therefore, the traditional income determination model characterized by historical cost principle, realization principle, matching principle and conservatism principle is facing great challenges. Faced with new problems, accounting standards-setting institutions in western countries, such as the Accounting Standards Board (ASB) in Britain, the Financial Accounting Standards Board (FASB) in the United States and the International Accounting Standards Board (IASB), are all committed to improving financial performance statements, and a "comprehensive income statement" called the "fourth financial statement" is taking shape. The development of financial accounting in China, especially the on-balance-sheet recognition and fair value measurement of derivative financial instruments, will certainly promote the continuous improvement of China's income statement. The influence of internationalization of financial accounting on the quality of accounting information of commercial banks
(A) the impact of the use of fair value on the quality of accounting information of commercial banks.
The use of fair value measurement of derivative financial instruments is conducive to its reflection in the table, improving the relevance of accounting information, more in line with the risk management regulations and modern risk management techniques of the banking industry, helping users of financial statements to understand the real financial situation of commercial banks, and more convenient to evaluate the effectiveness of banks in using derivative instruments for risk management. The application of fair value will also have a negative impact on the accounting information of commercial banks. The uncertainty, variability and aggregation of fair value measurement are difficult to meet the quality requirements of accounting information reliability. Any change in fair value will be reflected in the income statement, which will increase the volatility of financial reports and may lead to the market's wrong judgment on the economic value of banks. The reliability of fair value measurement is restricted by the degree of market development, and the determination of the value of non-market assets depends to a great extent on the scientific valuation model adopted by banks. More importantly, assuming that financial institutions adopt different valuation models according to different assumptions, the impact of changes in their fair value on profit and loss accounts may vary greatly among different banks, thus reducing the comparability of accounting information. For external independent audit, it is also a great challenge to confirm whether the fair value obtained through the model is reliable.
(B) The impact of changes in the method of provision for impairment on the quality of accounting information of commercial banks.
China's 200 1 accounting system for financial enterprises requires timely and full withdrawal of special provisions for credit assets according to the results of five-level classification, which is more in line with the objectives of banking supervision, namely, preventing and defusing banking risks, protecting the legitimate rights and interests of depositors and other customers, and promoting the healthy development of the banking industry. The Interim Provisions put forward higher requirements for the impairment of financial assets of listed commercial banks and commercial banks to be listed. Except for trading financial assets, the book value of other financial assets measured in amortized cost is written down to the recoverable amount, which is determined according to the discounted future cash flow method. This not only fully considers the debtor's financial situation and collateral management, but also comprehensively considers the development prospects, technology, market, economic or legal environment, time and other external factors of the debtor's industry. Therefore, compared with the five-level classification, the future cash flow discount method is more objective and fair, and it is more in line with the requirements of accounting information disclosure. The influence of internationalization of financial accounting on the operation and management of commercial banks
(1) Promote commercial banks to continuously improve their risk management capabilities.
The internationalization of financial accounting is not only a process of changing accounting standards, but also a process of improving the internal management level of banks. The risk management process of commercial banks involves the following four aspects: risk identification mechanism, risk early warning mechanism, risk decision-making mechanism and risk avoidance mechanism, which are indispensable factors for effective risk management and are closely related to the measurement of financial instruments, provision for impairment, hedging accounting of derivative financial instruments and risk disclosure of financial instruments. Only when the risk management system and technology of commercial banks are complete can financial instrument accounting be effectively used.
(B) put forward higher requirements for the regulatory capital of commercial banks.
The internationalization of financial accounting has affected the calculation of current capital adequacy ratio. According to the current Measures for the Administration of Capital Adequacy Ratio of Commercial Banks, the capital adequacy ratio is calculated on the basis of capital and risk-weighted assets. On the one hand, frequent changes in the fair value of financial instruments increase the volatility of bank capital. On the other hand, the calculation of weighted risk assets mainly includes the credit risk of on-balance-sheet business and the market risk of off-balance-sheet business. According to the requirements of the Interim Provisions, derivative financial instruments in off-balance-sheet business will be reflected in the table, which will definitely affect the calculation of weighted risk assets. In asset securitization, the transfer of financial assets stipulates that whether assets can be transferred from off-balance sheet mainly depends on whether the risks and rewards related to the ownership of financial assets have been substantially transferred and whether the control over financial assets has not been retained.
Therefore, if the securitized credit assets are still reflected on the balance sheet, it is impossible for commercial banks to get preferential treatment in capital supervision through asset securitization, which puts forward requirements for the supervision capital of commercial banks. Therefore, the internationalization of financial accounting not only affects the quality of accounting information of commercial banks, but also raises the requirements for regulatory capital of commercial banks, which may reduce the capital adequacy ratio of commercial banks to some extent. Only by improving the quality of credit assets and risk management ability, improving profitability and vigorously developing intermediary business can commercial banks continuously improve the level of regulatory capital, meet the requirements of regulatory authorities for capital and resist the occurrence of bank risks.