The Applied Research Of Assets Impairment Accounting In The Limited Companies

In the times of knowledge economy, with the high development of science & technology and its widespread use in area of production, the risk of devaluation faced by enterprises'assets has become greater than before. In order to reflect the real value of enterprises'assets and supply more related information to users, further improving of assets impairment accounting is developing tendency. International Accounting Standards Committee(IASC) and Financial Accounting Standard Board(FASB) have already established their own asset devaluation rules. China just published its sset devaluation rules this February and the practical feasibility is need to certified. This paper use standardize research and empirical research together. The paper first introduce the development process of assets impairment accounting and its theoretical fundamental, then compare the asset devaluation rules of International Accounting Standard and Financial Accounting Standard. For the application of assets impairment accounting in our limited companies, the paper select 912 sample companies to do empirical research. As a result of the research, the author find that earnings management practices exist in the limited companies. At the end of the paper, the author suggest some recommendations in order to solve the problem.