Analysis on the Theory of Loan Impairment and Study on the Establishment of Impairment Accounting Model

Abstract

Loan impairment is the content commercial bank will surely face, the important aspect reflecting the loan risk of commercial bank, and also the fundamental measure for risk management and control by commercial bank. This Paper conducts in-depth analysis on the connotation of loan impairment from theoretical perspective, and accordingly systematically analyzes the accounting process issues existing in the conducting of loan impairment by commercial banks in our country, and establishes the accounting process model for loan impairment for analysis results. From the analysis and calculation of the model, we may know that enterprises must prudently estimate their assets, neither overestimation of assets or profits, nor underestimation of liabilities is acceptable. Therefore, enterprises should reasonably predict the total amount of loan impairment, and on this basis, completely prepare well for the accrued loan impairment.