Research On Assets Impairment Accounting

Nowadays, with the complication of economic environment and changing of technology, accountants and researchers have already paid close attention to assets impairment. IASB, FASB, UK and CICA all organized professionals and researchers to discuss assets (especially long-lived assets) impairment. All of them draw up accounting standard to restraint accounting operation and improve the quality of accounting information.China also made big progress in assets impairment accounting standard. In August 2005 the Ministry of Finance People's Republic of China (MOF) issued the draft of accounting standard of assets impairment. In February 2006, MOF issued the No.8 accounting standard of assets impairment, and it will be carried out in listed companies on January 1st 2007. It represented a milestone for China accounting.But we didn't have a comprehensive and systematic research of assets impairment, we still had a lot of disagreement and problem to solve. So I want to be helpful on these questions.There all five parts in this dissertation, the main contents are as follows:In the first part, I introduced this dissertation briefly.In the second part, I briefly review the history of asset impairment thoughts and regulations, to make the development of assets impairment accounting clearly.Then, I discussed some of the theories of assets impairment accounting, include the relation between definition of asset and assets impairment accounting, purpose of assets impairment accounting, relation between assets impairment accounting and relevance and reliability.In the next part, I discussed the recognition, measurement and disclosure of assets impairment accounting. This part is the most important one in the whole paper. I also talk about the differences among IAS36, SFAS144 and our assets impairment accounting standard in order to improving our assets impairment accounting standard.The last part is a summary of this dissertation. I bring up some suggestions on improving our assets impairment accounting standard.The findings: After the comparison and analysis of IAS36 and SFAS144 and considering the reality of our country, I bring up some suggestions on improving our assets impairment accounting standard.The limits: This dissertation only considered long-lived assets during the discussion of recognition, measurement and disclosure of assets impairment, and I didn't talk about the impairment of goodwill. Meanwhile, when I discussed the recognition criterion of assets impairment, I didn't focus on the distribution of assets impairment losses in assets of assets group. This dissertation didn't use the empirical method during the discussion.