The Banking Accounting Society of China (BASC) held an academic seminar on Fair Value Accounting Application and Risk Prevention in Beijing on June 17th. Ms Wu Xiaoling, vice chairwoman of the Finance and Economic Committee of the National People s Congress and President of the BASC, attended the seminar and delivered an opening address.
A number of lectures on fair value accounting were given by guest speakers, including Vice President Huang Shizhong of the Xiamen National Accounting Institute, President Gan Li of the College of Economics of the Southwest University of Finance and Economics, Chief Financial Officer Zhou Guomin of the Financial and Accounting Department of the China Investment Corporation, Managing Director Shen Rujun of the Financial and Accounting Department of the Industrial and Commercial Bank of China, Vice President Zhuang Zuojin of the China Life Insurance (Group) Company, Chief Risk Officer Li Xianglin of the China International Capital Corporation and Chief Financial Officer David Cavanna of the HSBC Bank (China).
The seminar was moderated by Mr. Zhang Jianhua, Director-General of the Research Bureau of the PBC and Mr. Jiao Jinpu, Secretary-General of the BASC and Vice Chairman of the Administration Committee of the Graduate School of the PBC. Over 90 representatives from the PBC, the Ministry of Finance, financial regulatory agencies, policy banks and commercial financial institutions participated in the seminar.
The participants noted that accounting standards, particularly fair value accounting standards have been put under spotlight since the financial crisis started, and a wide range of researches on accounting rules and fair value measurement models have been made by both the academia and the financial community.
Focusing on some difficulties and common issues in applying the fair value accounting standards, the seminar reviewed fair value accounting from a theoretical perspective, and discussed its economic significance, its application and implementation as well as its implications for financial institutions.
The seminar also looked into the impact of fair value accounting on the assets, profits, tax payment, performance management, risk management and operational philosophies of financial institutions, and examined the fair value accounting s role in financial market development and its interaction with business cycles.
The seminar deepened the participants understanding of fair value measurement models and helped them gain more insights in the application of fair value measurement in banking, insurance and securities financial institutions. On the basis of a review and analysis on the convergence to international accounting standards in the financial sector, participants explored a practical approach to reform China s financial accounting standards so as to give accounting a greater social role, develop and improve financial markets, prevent and resolve financial risks, and promote a stable, healthy and sustainable development in the financial sector and the economy.
The lectures sparked lively discussions and interaction between guest speakers and the participants. In concluding the seminar, Mr. Hu Zhengheng, Director-General of the Accounting Department of the PBC, pointed out that improving and properly applying fair value accounting standards, and improving the quality of accounting information is an important task for all the participants. He also called on the BASC to continue to enhance academic study so as to promote the healthy development of financial accounting.
