Study Of The Asset Group And Its Appplication

Asset is the most important ingredient in the accounting system,other parts such as liabilities,income and expenses can be derived or transformed from asset.But until now,when we referred to asset,it usually means individual equipment and physical resource,with a distinctive brand of the industrial times.When it comes to the measurement,the object is often part of the production system,which means that the income or profit can't be measured precisely and that one of the features of the asset—to bring future economic benefits—distorted.In a word,the assets identified in the current accounting practice,in essence,are physical or economic resources,do not align well with the definition of assets.Judging from the essence of the enterprise value creation process,different resources are in the form of combination and coordinated by the managers to participant in the production process and generate profits,not with the appearance of simple stacking and piling individual resources,as shown in the financial statement.According to Schumpeter's theory of innovation,the innovation is defined as the new kinds of combination,and Synergetics theory is also the analyses of the coordination and integration among the factors of production,resulting in higher output levels and innovation capacity.However,with the development of the integrated manufacturing,intelligent manufacturing plants and the internet economy,the combination and collaboration relationships among factors of production is becoming increasingly complicated,which means the traditional measures about assets will not fit the new trend any longer.Therefore,the work of definition as well as the analysis of assets-the most basic and important part in accounting-must be transferred from individual,scattered and static condition to a new position where different assets are combined and adjusted to current need of the economy.And only in this way,our measurement of the assets could eventually reflect the internal organism of value creation process as well as meets the principle of 'substance over form'.This paper expands the definition of asset group which is only used in the measurement of the impairment of assets to a wider field,where the individual equipment is combined with related counterpart to gain the ability of generating economic benefits independently.As a result,the definition of asset returns to its original connotation.After a detailed discussion on the causes and research objectives,the paper discusses the differences and boundaries of asset group,the classification of the asset group,dynamic adjustment and the basic problem about the definition and recognition of the complex and different kinds of asset groups.Based on these problems,this paper constructs the asset group identification matrix as well as designs the asset group identification method,which includes three dimensions:(1)direct confirmation of the economic benefit of asset,usually by the measuring point between assets.(2)functional changes in the technical perspective,usually existing between the collaborative boundary of different assets;(3)the ownership boundary of asset in the legal perspective which usually is the identification basis of the cross-enterprise assets.Furthermore,with the example of power grid enterprises,this paper illustrates something about the identification and classification of asset group whose definitions are complex and confused.To reflect and promote value creation ability of the enterprise based on the asset group,the improvement and optimization of the current method of generating accounting information is one of the most important approaches.This paper discusses the mode and the specific content of financial accounting and management accounting information as follows:(1)the core of generating financial accounting information based on asset group is to change the caliber of generating information,and appropriate innovation on the content and method of reporting.What's more,the focus of our direction is the real-time confirmation and concurrent measurement based on the asset group.(2)Generating managerial accounting information based on asset group,our main focus is the evaluation of the effectiveness and the enhancement of the decision usefulness.As a result of the impact of the application of the new technology and revolution of organization,managerial accounting should adhere to the orientation of promoting the transformation of the function of corporate finance and creating more value,which means to create more flexible and efficient way of generating information to compensating the deficiencies of traditional financial accounting information.This paper proposed several basic assumptions of managerial accounting based on the asset group,such as the operating duration is the co-existing of the asset group and the organization,analysis cycle is a real-time business which consists of the full life cycle of asset.This paper also analyses the space and the impact of the application of managerial accounting in different types of industry after the introduction of asset group,for instance,the analysis of the improvement of the value-creation ability in the manufacturing enterprise,the value creating process in the new economy mode after introducing asset group,as well as the full reflection of the features and the real benefit flowing of the new economic model.Finally,using the power grid enterprises as the typical network infrastructure,the paper introducing asset group to evaluating the economic benefits and analyses the possible influence of the conclusion on the revolution of electric power system and the adjustment of the price mechanism.Financial accounting and managerial accounting respectively correspond to two area of resource allocation—market and enterprise,however,there are a huge gap between the two mode of accounting because of the target location,the different history and the differentiated application method.However,ultimate goal of the resource allocation of both the market and enterprise is the same—value creation,which means that the accounting information should also form a unified type and operating mode.This paper proposes a unified line and overall framework on the coalition of financial and managerial accounting based on asset group:using the multi caliber asset group as the basic unit in the process of generating accounting information,the multi-particle formation degree information and the "colorful report"could transform the accounting information by diverted quality status,and eventually,the financial and managerial accounting information will be generated at the same time,which means the realization of both the internal logical consistency and jointing content conversion of the two types of accounting.Finally,this paper proposes the overall framework and path of the integration of managerial and financial accounting.When it comes to the suggestion of the revision of accounting principles,the paper also proposes something about the identification,classification of the asset group as well as the detailed principle of the measurement and the reporting and disclosure of the ingredients such as liabilities,income,expenses and profits.What's more,it also covers the possible difficulties on the implementation level,and argues that using the managerial accounting as the attempts is a more feasible path.