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A Study Of Some Accounting Issues About Asset Impairment

Posted on:2006-12-18Degree:MasterType:Thesis
Country:ChinaCandidate:W T CengFull Text:PDF
GTID:2179360182983683Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Asset impairment is inevitable in the ordinary operation of enterprises. Theimpairment loss confirmation refers to the mixed accounting measurementattributes.The public corporations have implemented the asset impairment accountingregulation since the related principle had brought into effect. The thesisanalyzes the asset impairment accounting theory and technical difficulty forthe eight kinds of assets. It also discusses the application of CGU (cashgenerating unit). It is evident there are some differences between theregulation and the accounting practice of public corporations. The differenceis resulted from the lack of maneuverability for the specific principle. At thesame time, the intention of profit manipulating of management andunperfected market also contribute to the difference expanding.The other part of the thesis discussed the relationship of asset impairmentloss and the record of Asset Impairment List. It also illustrated that theimpairment loss has influence on the Statement of Cash Flows items onindirect format.The last part of the thesis pointed that the definition of asset is not consistent with themeasurement. The inconsistence comes from the advancement of consciousness andthe lag of technology, as well as the executing environment. The asset impairmentaccounting should be operated in a prudent manner with the accounting objectiveestablished under the current Chinese market environment. The value in use and fairvalue should not be applied blindly when there is no credible way or costly to acquire.At last, the article proposed some advice, such as establishing asset impairmentstandard and increasing the disclosure, and so on to improve the quality of assetimpairment accounting information.
Keywords/Search Tags:Amounts Recoverable, Financial Accounting Objective, Asset Impairment, Statement of Cash Flows
PDF Full Text Request
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