The Impact of New Financial Instrument Standards on Commercial Banks' Accounting-A Estimation of Bank of Nanjing

After the international financial crisis in 2008, the international accounting standards board revised the international financial reporting standards for financial instruments. In 2017, China revised and issued four accounting standards related to financial instruments in order to effectively solve the accounting practice problems of domestic enterprises and achieve the continuous and comprehensive convergence with international financial reporting standards. The revision of the financial instrument standard makes the enterprises change in the recognition, measurement and presentation of financial instruments to different degrees, especially the commercial banks are affected by more financial assets. In addition, the impact of the new financial instrument standards on enterprises is mainly reflected in the accounting of financial assets classification and asset impairment. Therefore, this paper takes bank of Nanjing, a commercial bank, as an example, from two aspects of financial asset classification accounting and asset impairment accounting, assuming that bank of Nanjing implements the new financial instrument standard on June 30, 2018, and estimates the impact on its asset presentation and corporate profits. On the one hand, it is found that the asset classification method of the new financial instruments accounting standards has little impact on the assets reporting and corporate profits of Nanjing banks. On the other hand, the face expected credit loss model increases the scope and range of enterprise impairment test, which will greatly increase the proportion of enterprise asset impairment accounting and reduce the profits of the enterprise.