Asset Impairment Accounting Research

The development of market economy, the increases of replacement products, the changes of price level and the uncertain factors in the operation increase the possibilities of impairment of assets. To reflect the true value of assets and raise the quality of accounting information, the accounting profession will study on the impairment of assets which is put on the agenda and develop the specialized asset impairment criteria in every country. By the end of 2000, China's Ministry of Finance announced the "Company Accounting System" which give assets to a new scientific definition, standardize the impairment of assets. However, Accounting of Impairment of Assets is imperfect whether in theory or in practice in the six years, the policy becomes a tool for manipulating earnings. On 15^th February 2006, China's Ministry of Finance announced the "Company Accounting Standards No. 8 - Impairment of Assets" and other related accounting guidelines, which were detailed the identification, the measurement and the disclosure of the asset impairment losses. Because of it, this paper intends to start with the theory of Accounting of Impairment of Assets and explain the processes of development. Then it points out the impacts on the listed company of new accounting standards on the impairment of assets and the existing problems in the implementation. Finally, it puts out the solutions. The full text is divided into the following parts:The first part starts from the concept of impairment of assets and analyzes the meaning of impairment of assets, Accounting of Impairment of Assets and so on. Then the brief review to the production and development of international and our country's impairment of assets has been made separately. The second part compares the accounting standards on the Impairment of Assets. It differentiates the old and new accounting standards on the impairment of assets from three aspects.The third part points out the impacts on the listed company of new accounting standards on the Impairment of Assets.The fourth part puts forward the existing problems in the implementation of new standards and the suggestions on perfecting them from their internal and external aspects.