A Contrast Between New Standards And Old Standards For Long-term Enqity Investment And Study On The Impact Of Company

To speed up China's combination of accounting and intermational accounting and promote socio-economic . The Accounting Standards promulgated by the Ministry of Finance in February 2006 .China's accounting has taken a new milestone . There is a big difference between the old and new accounting standards. Therefore ,combinating the old criteria, we analyze the new criteria and research the impact of financial situation to enterprises that result from the new criteria. In order to implementing the new criteria,it is very necessary to put forward some suggestions.The Accounting Standards No. 2 is long-term equity investment .From the initial measures to follow-up measures have changes, this paper shall analyze mainly the criteria.1. Outlined a long-term equity investmentTo conduct in-depth studies on the long-term equity investment criteria, first we must understand the concept of long-term equity investment and features. Equity investment as a long-term investment, with all the characteristics of the investment. New accounting standards for the definition of investment : enterprises to increase their wealth through distribution, or to seek other interests and other assets will be transferring to other units .Meanwhile the enterprises gain the other assets. From the definition, investment includes two aspects : 1. Part of the assets will be transferred to other business units and other units distribute their benefits after assets of investors create efficiency, or through investment to improve trade relations and obtain benefits. 2. The cash will be invested in financial assets. Through the sale of financial assets the capital improve value.Usually the holders of a long-term equity investment will own it for long...