TITLE:
Research on the Reclassification of Financial Assets
AUTHORS:
Congcong Gou
KEYWORDS:
New Accounting Standards, Financial Assets, Reclassification
JOURNAL NAME:
Open Access Library Journal,
Vol.7 No.6,
June
2,
2020
ABSTRACT: In order to better meet needs of the development of market economy, the Ministry of Finance revised the classification and transfer of financial assets in 2017, which would have a series of impacts on financial accounting after the revision. About how to implement the financial assets standard better, this paper uses comparative analysis, literature collection and other methods; combines with practical work to make a systematic study; analyzes the background of the revision, reclassification content and its impact. Through the research, it can be concluded that the reclassification of financial assets can reduce the use of accounting subjects, provide more reliable accounting information, and effectively prevent fraud. At the same time, after the reclassification, there are also problems such as subjectivity of business model judgment, uncertainty of fair value measurement, etc.