XML 40 R13.htm IDEA: XBRL DOCUMENT
v3.7.0.1

FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended
--- | ---
Dec. 31, 2016
FAIR VALUE OF ASSETS AND LIABILITIES |
FAIR VALUE OF ASSETS AND LIABILITIES | 4. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Company’s fair value methodologies, see “Note 2 — Summary of Significant Accounting Policies.” The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2014, 2015, and 2016. Assets and Liabilities Recorded at Fair Value The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition:
December 31, 2015 |  | Level 1 Inputs |  | Level 2 Inputs |  | Level 3 Inputs |  | Balance at Fair Value |
|  | RMB |  | RMB |  | RMB |  | RMB |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 846,120 |  | — |  | — |  | 846,120 |
Loans at fair value |  | — |  | — |  | 221,268 |  | 221,268 |
Total Assets |  | 846,120 |  | — |  | 221,268 |  | 1,067,388 |
Liabilities |  |  |  |  |  |  |  |  |
Payable to investors at fair value |  | — |  | — |  | 252,907 |  | 252,907 |
Total Liabilities |  | — |  | — |  | 252,907 |  | 252,907 |
December 31, 2016 |  | Level 1 Inputs |  | Level 2 Inputs |  | Level 3 Inputs |  | Balance at Fair Value |
|  | RMB |  | RMB |  | RMB |  | RMB |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 968,225 |  | — |  | — |  | 968,225 |
Loans at fair value |  | — |  | — |  | 371,033 |  | 371,033 |
Available-for-sale investments |  | — |  | 1,158,000 |  | — |  | 1,158,000 |
Total Assets |  | 968,225 |  | 1,158,000 |  | 371,033 |  | 2,497,258 |
Liabilities |  |  |  |  |  |  |  |  |
Payable to investors at fair value |  | — |  | — |  | 418,686 |  | 418,686 |
Total Liabilities |  | — |  | — |  | 418,686 |  | 418,686 |
In accordance with ASC 820, the Company measures available-for-sale investments at fair value on a recurring basis. The fair values of the Company’s available-for-sale investments are determined based on the discounted cash flow model using the discount curve of market interest rates. As the Company’s loans and related payable to investors do not trade in an active market with readily observable prices, the Company uses discounted cash flow methodology involving significant unobservable inputs to measure the fair value of these assets and liabilities, including discount rate, default and recovery rates, and prepayment rates. Financial instruments are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. As of December 31, 2015 and 2016, due to the adoption of ASU 2014-13 (see Note 2), the payable to investors of the Consolidated ABFE was measured on the basis of the fair value of the loans of the Consolidated ABFE as the loans were determined to be more observable. Significant Unobservable Inputs
|  |  |  | December 31, 2015 |  | December 31, 2016 |
|  |  |  | Range of Inputs |  | Range of Inputs |
Financial Instrument |  | Unobservable Input |  | Weighted- Average |  | Weighted- Average |
Loans and payable to investors |  | Discount rates |  | 12.0 | % | 12.0 | %
|  | Net cumulative expected loss rates (1) |  | 7.9 | % | 7.6% - 7.9 | %
|  | Cumulative prepayment rates (2) |  | 7.4 | % | 13.2 | %
| (1) |  | Expressed as a percentage of the loan volume.
| (2) |  | Expressed as a percentage of remaining principal of loans.
The above inputs in isolation can cause significant increases or decreases in fair value. Specifically, increases in the discount rate can significantly lower the fair value of loans; conversely a decrease in the discount rate can significantly increase the fair value of loans. The discount rate is determined based on the market rates. The following table presents additional information about Level 3 loans, payable to investors measured at fair value on a recurring basis for the years ended December 31, 2015 and 2016.
|  | Loans |  | Payable to investors |
|  | RMB |  | RMB |
Balance at December 31, 2014 |  | — |  | — |
Purchases of loans |  | 247,434 |  | — |
Initial contribution |  | — |  | 250,000 |
Collection of principal |  | (10,425 | ) | — |
Interest and penalties received |  | — |  | 4,516 |
Deductibles expenses associated with the Consolidated ABFE operating |  | — |  | (714 | )
Change in fair value |  | (15,741 | ) | (895 | )
Balance at December 31, 2015 |  | 221,268 |  | 252,907 |
Purchases of loans |  | 299,956 |  | — |
Initial contribution |  | — |  | 270,000 |
Collection of principal |  | (135,172 | ) | — |
Interest and penalties received |  | — |  | 30,342 |
Deductibles expenses associated with the Consolidated ABFE operating |  | — |  | (5,518 | )
Principal and interest payments to the Fund No.1 |  | — |  | (263,054 | )
Issuances of Asset Backed Special Plan |  | — |  | 202,500 |
Principal and interest payments to Asset Backed Special Plan investors |  | — |  | (69,695 | )
Change in fair value |  | (15,019 | ) | 1,204 |
Balance at December 31, 2016 |  | 371,033 |  | 418,686 |
Financial Instruments Not Recorded at Fair Value Financial instruments, including restricted cash, accounts receivable, accounts payable, held-to-maturity investments and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments are approximate their carrying value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration