Analyze The Influencing Factors Of The Choice Of Asset Impairment Back Policy

February 15, 2006, China promulgated the new accounting standards which would be implemented on January 1, 2007. One of the most noteworthy problems is the reversal of asset impairment problems. The new standard requests that once an asset impairment loss is recognized, in the following accounting period, it should not be turn back. Actually, this policy is not consistent with GAAP. Why China raised this policy? Is this requirement consistent with the definition of assets? Does it reflect the accounting goal, and the stability, reliability and relevance? And which factors have affected the implementation of the asset impairment back polices? These issues are the focus of this thesis.This thesis adopts qualitative and quantitative methods to research factors which have influenced the implementation of asset impairment back policy. In theory analysis, it begins with the definition of assets and accounting of the objectives to discuss theoretical basis of reserve of the assets impairment; then deeply analyze the rules and status of the back of asset impairment; Furthermore, Combined with the accounting choices literatures, raised influencing factors of the implementation of asset impairment back policy, which will be tested in empirical research. In Empirical research , firstly, this paper statistically analyzes the implementation of asset impairment back policy from 2002 to 2005;Then choosing the influencing factors of accounting policies as the company's characteristics, and this research compares the implementation with the non-implementation sub-sample to test whether the differences between the two samples. Furthermore, this paper observes the two sub-samples ( back and not-back) in 2004, with 2005 matching samples respectively, it analyze the statically differences of company features between before and after implementation of back policy . Finally, on the basis of the three accounting assumptions, it builds a regression model to analyze the factors of the implementation of asset impairment back policy in conjunction with other relevant factors. Lastly, it gives some suggestions toward the norms of asset impairment policy and corporate governance structure.