Asset Impairment Accounting Issues Related To Research

Entering 21^st centuries, enterprises are faced with the complex and volatile economic environment. Driven by the economic interests, there is a growing trend of asset overestimations in the companies and corporations. The overvaluation in financial reports had a serious impact on the decision of the users, reduced the company's credibility and caused many adverse effects to the economic development. In order to fairly reflect the state assets of a certain company and to provide real and potential investors with information related to the decision-making, asset impairment becomes an unavoidable issue. Asset impairment accounting becomes a current hot topic of accounting in the world.On 15 February 2006, "Enterprise Accounting Standards No. 8- impairment of assets" issued by Ministry of Finance in China, and the listed companies implemented in January 1, 2007. 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. Based on the contrast and comparison of the international accounting rules, the American accounting rules and the new Chinese accounting rules which are in effect since 2007 January, 1st, this paper points out the advantages and disadvantages of the new guidelines. 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 seven parts:Starting from the concept of asset, the first part introduces the research motivation,the methods and the literatures.The second part analyzes the meaning of assets depreciation and describes thedevelopment and theory foundation of assets depreciation accounting.The third discusses he core problem of impairment of assets accounting includingits confirmation, calculation and disclosure.The fourth compared with old guidelines and International Accounting rule,evaluate the new guidelines.Part five: the Huaxin company has been selected as a case, analyzes the issues andimpact which has been brought by the execution of impairment of assets.The sixth part points out advances suggestions on improving the impairment ofassets accounting and accounting practices. The final part of this paper proposesthe conclusions and research limitations.