An Analysis Of Asset Mode Selection In Accounting Of Waste-to-Electricity PPP Project Of B Company

There are many problems with the old way of economic growth,which is at the cost of the environmental damage.Due to the rapid development of economy,China’s "14th Five-Year Plan" has made clear the goal and strategic deployment of ecological environment construction.It is extremely urgent to continuously improve the urban and rural environment and make people’s life much happier.However,China has a large population,how to effectively deal with the waste is related to people’s health and the construction of China’s ecological civilization.Compared with traditional landfill treatment,waste-incineration power generation technology has been greatly promoted due to its environmental characteristics such as saving land,avoiding secondary pollution and providing clean energy.But the investment is huge in waste-to-electricity projects,meanwhile excellent technology and professional skills are highly required.Bringing social investment in PPP project is a win-win policy,on the one hand,it reduces the government’s fiscal payment pressure,on the other hand,the excellent construction and management team plays an important role on the project construction,as while as operations management.China lacks systematic and comprehensive guiding documents for the accounting of PPP projects.The promulgation of Interpretation of Accounting Standards for Business Enterprises No.14 standardizes the accounting and disclosure of PPP projects.However,the biggest controversy in the accounting of PPP projects lies in which mode to choose and what differences between intangible asset mode and financial asset mode.The difficulties in how to account are needed to solve while using financial asset mode.In order to solve above problems,this article research the main differences between intangible asset mode and financial asset mode based on the waste-to-electricity PPP project of B Company.The study is carried out from the economic benefits,assets and liabilities,cash flow,and the tax differences,in the meantime,the article analysis the problems of financial asset mode.Then it comes the conclusion that the intangible asset model is more feasible in practice.Based on the case study of the B Company’s waste-to-electricity PPP project,advices and suggestions are given to those relevant enterprises on how to select asset modes in PPP project accounting: it needs to specify the judgment basis of the main responsible persons and agents of PPP projects,at the same time,the scope of project assets handover after the end of operation should be specified in the PPP contract.Avoid the poor comparability of accounting information caused by different professional judgment of repair and transformation expenses in the operation period.