Research On Measurement Attributes Of Assets Impairment Accounting

Measurement has been the core issue of financial accounting. In assets impairment accounting, when assets impairment needs to be recognized, it is important to calculate assets impairment losses which are based on the measurement of assets values. That how to choose the appropriate measurement attributes is very important but at the same time it is not easy to be solved in assets impairment measurement. The article chooses measurement attributes of assets impairment accounting as the study object, first differentiates some principal concepts related to accounting measurement of assets impairment, then systematically analyzes measurement attributes and their choice in assets impairment accounting, and has an international comparison of compositive measurement attributes applied in assets impairment accounting standards. It's pointed out that recoverable amount is the core measurement attribute of assets impairment accounting. This paper does the further research on the determination of recoverable amount, discusses the measurement framework of 'fair value-present value', and introduces measurement frameworks of fair value and present value based on the international research, and analyze problems in China's assets impairment accounting standard about fair value and present value measurements. We propose that China should further improve the standards about fair value's valuation techniques with unobservable inputs, use market approach, income approach, and cost approach as the valuation techniques at the right time, and set up fair value hierarchy. We also point out that it's better to use expect present value technique for present value measurements, and make further provisions about the choice of discount rate. At the end, we make some suggestions which help the application of recoverable amount in assets impairment measurements in China.