Study On Allocation Of Assets Impairment Of List Companies

In the past ten years, with the increasing uncertain economic environment, accounting for impairment of assets is becoming a hot point cared by many people.Ministry of Finance People's Republic of China in1999 published the supplement regulations and accounting rules for allocation of impairment of assets reserve concerning short-term investment, inventory, receivables, long-term investment, fixed assets and intangible assets. These rules regulate impairment of assets accounting in detail. The new 'Enterprise Accounting Criteria' published in the end of 2000 emphasized the execution of assets depreciation accounting policy, and extended the scope of impairment of assets to eight assets.According to the rules discussed above, the enterprises can determine the possible profit and loss conservatively, and get the true accounting information by getting rid of the foam of assets. However, the recent annual reports showed that some companies adjusted the profit at random using the limitations of accounting policy To some extent, accounting polices on impairment of assets is being used by some companies as a tool for profit.In this dissertation, an empirical method was used to investigate the factors influencing on the execution of asset impairment policies on the base of over 100 companies of shanghai A share market in the years of 2000 and 2001, and some suggestions were given for perfecting the related accounting principles .The dissertation consists of five chapters as following:In Chapter 1, the general content of the paper including research background, the existing problems, research method, frame and significance was presented. In chapter 2, the development of polices of asset write-downs was briefly described, and the main related literatures were reviewed. Based on these, the descriptive statistics and empirical analyze in the next chapters will be well understood.Theories of asset write-downs including 'availability of decision-makingtheory', 'proxy theory and 'contract theory' were considered in Chapter 3, which concern economic motivation of accounting policies selections. And this chapter also analysed the factors of economic motivation during the enterprises selecting and executing asset impairment policies.In chapter 4, asset impairment was explored using an empirical method. Firstly, over 100 companies of shanghai A share market in the years of 2000 and 2001 were collected as the samples. And then SPSS software was employed to do the descriptive and regression analyze. The factors affecting the companies executing asset impairment were emphasized, and a reasonable explanation was given in term of our special politics and economic environment. The results show that, firstly, the allocation of impairment of assets reserves can improve quality of asset; secondly, the companies with anti-deficit motivation usually choose low asset deprecation rate, and then the others with deficit motivation generally select higher rate.Countermeasures were come up with in Chapter 5 to solve the problems existing in asset Impairment. The key points for us are to perfect the accounting regulations in Asset Impairment, and improve the oneness and perspicuity of accounting regulations. Some suggestions were given in this chapter that we should compress the space of enterprises selecting accounting methods, have to be cautions endowing enterprises with selective power on Asset Impairment, and strengthen the accounting control, supervising and punishment.The novelty of the dissertation:Statistical methods were well used to explore the asset impairment of list companies on the base of a great deal of data collected from annual reports, and some guiding conclusions were achieved that those companies with anti-deficit or deficit motivations have the unsuitable allocation of asset impairment. The research has an important significance for perfecting supervising rules and promoting the allocation of capital market.