Recognition and measurement of financial assets and financial liabilities
Financial instruments refer to contracts that form financial assets of enterprises and financial liabilities or equity instruments of other units. Financial instruments include financial assets, financial liabilities and equity instruments, and can be divided into basic financial instruments and derivative instruments.
I. Classification of financial assets and financial liabilities
(1) Financial assets or financial liabilities measured at fair value and whose changes are included in current profits and losses.
(2) held-to-maturity investment
(3) Loans and receivables
(4) Available for sale financial assets
(5) Other financial liabilities
Enterprises shall not change financial assets and financial liabilities at will after classifying them at the time of initial recognition. Unless otherwise stipulated in the recognition and measurement of financial instruments.
Two. Recognition of financial assets and financial liabilities
(1) Preliminary confirmation
When an enterprise becomes a party to a financial instrument contract, it shall confirm a financial asset or financial liability.
(2) Termination of confirmation
1. The contractual right to collect the cash flow of financial assets is terminated, or the financial assets have been transferred and conform to the Accounting Standards for Business Enterprises No.23? Transfer of financial assets ",and the recognition of the financial assets is terminated.
2. Only when the existing obligations of a financial liability are fully or partially fulfilled can the recognition of the financial liability or a part thereof be terminated.
Three. Initial measurement of financial assets and financial liabilities
When an enterprise initially recognizes financial assets or financial liabilities, it shall measure them at fair value.
For financial assets or financial liabilities that are measured at fair value and whose changes are included in the current profits and losses, relevant transaction costs are directly included in the current profits and losses; For other types of financial assets or financial liabilities, the relevant transaction costs shall be included in the initial recognition amount and constitute the actual interest part.
Four. Subsequent measurement of financial assets
(A) the principle of subsequent measurement of financial assets
Financial assets and available-for-sale financial assets that are measured at fair value and whose changes are included in the current profits and losses shall be measured at fair value, without deducting transaction costs that may occur when disposing of the financial assets in the future; keep
Investments, loans and due receivables are measured in amortized cost using the effective interest rate method.
(2) Accounting treatment of financial assets measured in amortized cost.
The effective interest rate method refers to the method of calculating amortized cost and interest income or interest expense in each period according to the actual interest rate of financial assets or financial liabilities (including a group of financial assets or financial liabilities).
The amortized cost of a financial asset or financial liability refers to the result of the following adjustments to the initial recognition amount of the financial asset or financial liability: (1) deducting the repaid principal; (2) Add and subtract the accumulated amortization amount formed by amortizing the difference between the initial confirmation amount and the maturity date amount by the effective interest rate method; (3) Deduct the impairment losses that have occurred (only applicable to financial assets).
(3) Subsequent accounting treatment of financial assets measured at fair value
1. Gains or losses arising from changes in the fair value of financial assets measured at fair value and whose changes are included in the current profits and losses shall be included in the current profits and losses.
2. Gains or losses caused by changes in the fair value of available-for-sale financial assets, except for impairment losses and exchange differences caused by foreign currency monetary financial assets, are directly included in owners' equity, and are transferred out when the financial assets are derecognized and included in current profits and losses.
3. Gains or losses arising from impairment, amortization or derecognition of financial assets measured in amortized cost shall be included in current profits and losses. Unless the financial asset is designated as a hedged item.
(4) Reclassification of financial assets.
According to the recognition and measurement criteria of financial instruments, if the held-to-maturity investment is reclassified as an available-for-sale financial asset, the difference between the book value of the investment and its fair value will be included in the owner's equity on the reclassification date, and will be transferred out when the available-for-sale financial asset is impaired or derecognized, and will be included in the current profit and loss.
Verb (abbreviation of verb) Subsequent measurement of financial liabilities
(A) the principle of subsequent measurement of financial liabilities
1. Financial liabilities measured at fair value and whose changes are included in current profits and losses shall be measured at fair value, without deducting transaction costs that may occur when financial liabilities are settled in the future.
2. A financial guarantee contract that is not a financial liability designated as being measured at fair value and whose changes are included in the current profits and losses shall be subsequently measured according to the higher of the following two amounts after initial confirmation: according to the Accounting Standards for EnterprisesNo. 123. 13? Contingency "to determine the amount; The initial confirmation amount is in accordance with the Accounting Standards for Business EnterprisesNo. 14? The balance after accumulated amortization is determined according to the principle of income.
3. Financial liabilities other than the above-mentioned financial liabilities shall be measured according to amortized cost.
(B) Accounting treatment of subsequent measurement of financial liabilities
1. Gains or losses arising from subsequent changes in the fair value of financial liabilities measured at fair value, except those related to hedging, shall be included in the current profits and losses.
2. Gains or losses arising from amortization and derecognition of financial liabilities measured at amortized cost or cost shall be included in current profits and losses. Except that financial liabilities are designated as hedged items.
Impairment of financial assets with intransitive verbs
(1) Recognition of impairment loss of financial assets
An enterprise shall, on the balance sheet date, check the book value of financial assets (including a single financial asset or a group of financial assets, the same below) other than those measured at fair value and whose changes are included in the current profits and losses. If there is objective evidence that the financial assets are impaired, the impairment loss shall be confirmed and the impairment reserve shall be accrued.
(2) Measurement of impairment loss of financial assets
1. Measurement of impairment losses of held-to-maturity investments, loans and receivables
When held-to-maturity investments, loans and receivables are impaired, the difference between the book value of financial assets and the present value of expected future cash flows is recognized as impairment loss and included in the current profit and loss.
For enterprises with a large number of assets of similar nature and following the quantitative finance of amortized cost, financial assets with significant single amount shall be separately tested for impairment. For financial assets with insignificant single amount, impairment tests can be carried out separately, or they can be included in financial asset portfolios with similar credit risk characteristics.
Impairment test. Financial assets that have not been found to be impaired by separate tests should be included in the financial asset portfolio with similar credit risk characteristics, and then be tested for impairment. Financial assets whose impairment losses are individually recognized should not be included in financial asset portfolios with similar credit risk characteristics for impairment testing.
After the impairment loss of a financial asset measured in amortized cost is confirmed, if there is objective evidence that the value of the financial asset has recovered and is objectively related to the events that occurred after the loss was confirmed, the originally confirmed impairment loss will be reversed and included in the current profit and loss, but only in amortized cost on the date of reversal.
2. Measurement of impairment loss of available-for-sale financial assets
When the available-for-sale financial assets are impaired, the accumulated losses caused by the decline in fair value in the original owner's equity shall be transferred out and included in the current profit and loss.
For available-for-sale debt instruments for which impairment losses have been confirmed, if the fair value increases in subsequent accounting periods and is objectively related to what happened after the original impairment losses were confirmed, the originally confirmed impairment losses will be reversed and included in the current profits and losses.
Impairment losses arising from investment in available-for-sale equity instruments are reversed through equity. However, the investment in equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured, or the impairment loss of derivative financial assets linked to the equity instruments and must be settled through delivery of the equity instruments, shall not be reversed.
Seven, the difference between financial liabilities and equity instruments
Enterprises shall abide by the Accounting Standards for Business Enterprises No.22? Recognition and measurement of financial instruments Accounting Standards for Enterprises No.37? The presentation of financial instruments, the provisions on distinguishing financial liabilities from equity instruments and related accounting treatment, classify financial instruments or their components as financial assets, financial liabilities or equity instruments at initial recognition according to the contract terms and economic essence of the issued financial instruments, not just the legal form, and combine the definitions of financial assets, financial liabilities and equity instruments, and carry out corresponding accounting treatment.
(A) the principle of distinguishing between financial liabilities and equity instruments
1. Settle by delivering cash, other financial assets or exchanging financial assets or financial liabilities;
2. Settlement through self-owned equity instruments;
3. For the classification of financial instruments that need to be settled in the future or can be settled by the enterprise's own equity instruments, derivative instruments or non-derivative instruments should be distinguished.
(2) Financial instruments with contingent settlement clauses
(3) Derivatives with settlement options
(4) Resale tools
(5) Instruments that are obligated to deliver net assets in proportion only at the time of liquidation.
(6) Composite financial instruments
If the non-derivative financial instruments issued by an enterprise include both financial liabilities and equity instruments, the fair value of the financial liabilities (including the non-equity embedded derivatives that may be included) shall be determined at the initial measurement, and then the fair value of the liabilities shall be deducted from the fair value of the composite financial instruments as the value of equity instruments.
(7) Accounting treatment of financial instrument reclassification
An issuer shall reclassify a financial instrument originally classified as an equity instrument as a financial liability from the date when it is no longer classified as an equity instrument, and measure it at its fair value on the reclassification date. The difference between the book value of equity instruments and the fair value of financial liabilities on the reclassification date is recognized as equity. Financial instruments originally classified as financial liabilities by the issuer shall be classified as equity instruments from the date when they are no longer classified as financial liabilities, and shall be measured at the book value of financial liabilities on the reclassification date.
(8) Classification of financial instruments of investors and buyers.
Investors (holders) of financial instruments should generally be consistent with the issuer's classification of equity or liability attributes of financial instruments when considering whether their financial instruments or their components are equity instruments or debt instruments.