Replacement Assets Accounting Issues In China's Listed Companies

Asset reorganization whose aim is to reallocate resource has been an important means to carry out industry transfer. Assets trade-in, which is an economical approach to make industry structure improved, is one forms of asset reorganization and can fully avail itself of resource. Economic progress after war times of developed countries has proved its role. Because asset trade-in makes optimum allocation of resource true which belongs to capital convergence. Compared with capital accumulated, capital convergence can bring obvious capital expansion and profit return in short time. At present China is adjusting economic structure, so many corporations learn from foreign experience and take this form. The difference between assets trade-in and other forms is more directly to change the management orientation and asset quality and more favorable to keep continuity. But in reality, a lot of listed companies utilized assets trade-in to get along earnings management. Therefore, many problems such as non-monetary transactions, whole assets trade-in needs to be settled. This dissertation will focus on accounting issues research on assets trade-in of listed company in China. The author sets 3 problems: (1) accounting issues in assets trade-in; (2) internal transactions issues in assets trade-in; (3) Information disclosure issues in assets trade-in. Based on the framework of successful experience abroad, the author puts forward his opinions and some problems waiting to be researched.The dissertation is composed of five chapters.Chapter 1: Outline of assets trade-inAsset reorganization is now fashionable in the economic circles. Asset reorganization remains immature in China, and there are many problems unsettled. In the first place, the author holds that asset reorganization is to gain competitive dominant through the optimum allocation of resource, the asset reorganization involving the adjustmentsof both legal person's property rights and owner's property rights, as well as to maximize the benefits of the reorganizing corporation. The forms of asset reorganization includes merge, business contract and assets trade-in. Then based on the outline of assets trade-in, the author expounds the definition, character, type and motivation of assets trade-in. It establishes foundation for after mentioned discuss.Chapter 2:Accounting issues in assets trade-inAssets trade-in involves a lot of non-monetary transactions, which is different from monetary transactions. There is tremendous difference on the amount of gains or losses realized in the two types. "Accounting standard for business enterprises: non-monetary transactions" issued intensifies accounting transaction rationality, yet there is some leak. The first section through comparison points out new accounting standard simply partly cut down room of earnings management, moreover some listed company makes use of the leak of accounting standard and system to avoid stipulations for mendacious gains.The second section discusses whole assets trade-in, which is a special form. Whole assets trade-in results in the change of accounting entity and brings forward challenge for providing financial statement. The author holds that the company after assets trade-in should be treated as a new one and should provide pro forma financial statements to meet investors' needs.Chapter 3:Internal transactions issues in assets trade-inAssets trade-in concerns mostly listed companies and its own controlling company, and it belongs to internal transactions. On the other hand, internal transaction is easy to cause earnings management, whose main measure is to use price policy. Rated mode has two: appraisal value and consultative value, but the first one is leading. Appraisal method is the most important factor to affect appraisal value. There are four alternatives for asset appraisal: current price method, replacement cost method, discounted cash flow method, liquidation method. Appraiser should select right method. Aimed at internal transactions in assets trade-in, the author a...