Evaluation Of Assets In Restructuring Enterprises

The state enterprises, especially the large and medium-sized enterprises have long been the leading force of China's industry and national economy as well as the main source of the state revenue. With profits and taxes amounting to 55 percent of the state revenue, they are backing substantially the state economy reform and construction. The policy of reform and opening-up has given much life to the state economics. The 16th National Congress of the Communist Party of China marked, however, that in spite of the encouraging overall situation, there still exist some noticeable problems, such as low commercial and heavy financial burden on the state enterprises. All these problems need prompt solution and restructuring enterprises is imperative accordingly. Unlike other reforms, restructuring enterprises, a more difficult and complicated task, involve much creative work, aiming to find a sound mechanism that integrates socialist state economy and market economy. State enterprises' acting as corporations is meaningful step forward into evaluation assets, namely, to clarify the input of state capital input in the corporation, to define investor' responsibilities, is necessary homework in order to achieve the aim. According to the performance of some trial corporations, there are some unsatisfying operations, which is attributable to the long history of state ownership, the complexity of capital input, lack of scientific criterion to evaluate the credibility of investors, trademark, and land-use right. All these defects have negatively affected assets evaluation and hindered the progress of enterprise reforms. The paper, through analyzing the current situation of the assets evaluation line, aims to search for a scientific and feasible approach to the evaluation of assets in restructuring enterprises.