Analysis And Research Of Accounting Standards Of Assets Impairment

The accounting thought of impairment of assets may trace to the 11th century in Europe. When it comes to the 21st century, along with the development of the market economy and the increasing change of the economic environment faced by the enterprises, accounting for impairment of assets obtains violent development, and becomes one of the central issues concerning the regulation of accounting system around the world. In the end of 2000, " Enterprise Accounting Criteria" issued by Ministry of Finance in China (called original accounting criteria in this paper) defined 'asset' in a new scientific way , standardized the processing questions of impairment of assets in a special course and emphasized the execution of impairment of assets. In the six years for the development of impairment of assets in China, accounting polices on impairment of assets has been adopted by the listed companies as a tool for profit manipulation because of imperfect theory and practice. On February 15th 2006, "Enterprise Accounting Standards No. 8- impairment of assets" issued by Ministry of Finance in China (called new accounting standards in this paper) standardized the identification, measurement, information disclosure of impairment of assets. The aim of new accounting standards is that the quality of the enterprise assets can be truly reflected and the effectiveness of accounting information can be improved.In view of this, this paper draws up from the theory question of impairment of assets, discusses the correlation concepts and the basic theories and analyses new accounting standards for impairment of asset in the identification, measurement and information disclosure. Then by the analysis of the execution of impairment of assets in the listed companies, the paper points out some impacts on listed companies because of the execution of new accounting standards and puts forward some questions about the execution of new accounting standards. In the end, the paper points out some suggestions on the perfection of impairment of assets accounting. The whole paper is composed of six parts:The first part are the foreword, explain the reason of choosing this subject, and doing literature summarizing.The second part starts from the concept of asset and analyzes the meaning of asset and impairment of assets and so on., and the basic theories of impairment of assets based on the definition of asset, accounting goal, historical cost principle, conservatism principle, relevance and reliability. The third part discusses new accounting standards on the identification, the measurement and the disclosure of impairment of assets. This is the core of impairment of assets.The fourth part discusses the practice using of the principle of impairment of assets.The fifth part analyzes firstly the impacts on the listed companies due to the execution of new accounting standards and finally, this part puts forward some questions.The sixth part puts forward some suggestions on the establishment and the perfection of impairment of assets accounting, e.g. external inspection and surveillance, the company's governed structure and so on.