Classification determines the measurement basis, and the measurement basis determines the economic result. Therefore, the classification of financial assets is centered on SHI financial instruments. According to CAS22 rules, financial assets shall not be changed at will after initial classification. Only the held-to-maturity investment can be reclassified as available-for-sale financial assets because of the change of the enterprise's holding intention or ability and the rights and interests (capital reserve) of those who think that the fair value of available-for-sale financial assets has changed. Therefore, according to CAS22DE rules, the current profit and loss before and after the reclassification of financial assets is not affected by the change of fair value DE, but after the sale of available-for-sale financial assets SHI, it was originally included in the DE part of owners' equity (capital reserve). It can be reclassified as current profit and loss, that is, from capital reserve to investment income (or loss), which will still have an impact on profit and loss.

IFRS9 optimizes the reclassification of financial assets and prevents the fluctuation of profit and loss. IFRS9 relaxed the criteria for financial asset reclassification. If the business form of financial assets managed by an entity suddenly changes, the reclassification between the fair value measurement category and the amortized cost measurement category shall be stopped, which will affect the current profit and loss. However, in order to slow down the impact of changes in fair value on profit and loss DE (especially during the financial crisis), IFRS9 also stipulates that changes in fair value can be included in current profit and loss or owner's equity (capital reserve) when measuring DE financial assets at fair value. However, once SHI chooses, it is not allowed to stop reclassification, that is, changes in fair value are reclassified from capital reserve to profit and loss, that is, after financial disposal of assets, they are not included in gains or losses. The results of empirical research show that in order to prevent the profit from wavering, the main starting point for SHI listed companies to choose financial asset classification is virtue. When companies hold a large number of securities investment assets, in order to avoid risks, they tend to classify trading financial assets as DE financial assets measured by amortized cost.

3. Analogy classification specification

CAS22 is classified according to SHI's "holding attempt" and "holding ability", and is often "quantified" as short-term holding and long-term holding in practice. The same financial asset can be selected for many times, so it can be divided into different DE financial assets, and thus different DE measurement bases can be adopted. For example, for a bond investment, you can choose to hold it for a short time, and then give it a fair value measurement form, and its fair value change can affect the current profit and loss; Similarly, SHI's bond investment can also be held for a long time, so it is measured in the form of amortized cost, and the change of its fair value will not affect the current profit and loss.

IFRS9 cancels the objective standard of "holding destination DE" and reduces the space for corporate profits to dominate DE. Amortized cost quantitative finance assets SHI and quantitative finance assets SHI at fair value only depend on two conditions, namely, the DE characteristics of the financial instrument itself and the business form of the holder who manages the financial instrument. Enterprises hope to adjust and disclose through the selection of classification and measurement methods and accounting policies, which is more in line with their wishes. Financial achievements are obviously severely restricted by morality. For example, if the above bond investment is based on the "two-level classification" DE rule of IFRS9, since the bond has the characteristics of principal and interest DE, it should be measured according to amortized cost, regardless of the holding purpose DE of the financial assets.

4. Comparison of the scope of application of fair value

In the 1980s, some financial institutions in the United States used historical capital to quantify financial assets, and the impairment of non-performing loans in Daliangde was covered up by historical capital measurement, which led to the bankruptcy of hundreds of financial institutions without any financial warning. In September, 2006, financial accounting principles Committee (FASB) of the United States published financial accounting principles BulletinNo. 157-Fair Value Measurement on www.bfblw.com Paper Network (SFAS 157), which established the basic framework of fair value measurement. It can be seen that fair value accounting replaces historical capital accounting as a symbol of SHI accounting progress. In a healthy and orderly DE market environment, fair value DE can indeed reflect the true value and income of assets DE relatively accurately.

Based on the above considerations, IFRS 9 adheres to the concept of the most relevant measurement of fair value SHI financial assets, and further expands the application scope of fair value measurement. At the same time, it retains the right of enterprises to include changes in fair value in profits and losses or directly in equity, which reduces the profit fluctuation of de enterprises caused by changes in fair value of financial instruments. Because, under the "two classifications" of IFRS9, as long as there are DE financial assets collected by lending banks, they can be classified as DE financial assets measured by amortized capital, so all DE equity financial assets held by enterprises should be classified as DE financial assets measured by fair value, thus unifying the measurement basis of equity instruments DE; At the same time, for equity financial assets, changes in their fair value can be included in the current profits and losses or capital reserve, which not only avoids the shocking impact on the profits of enterprises holding a large number of such financial assets, but also ensures the comparability and difference of accounting information.