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Test Of Three Theoretical Assumptions For Asset Impairment Accounting Choices - For Example, Listed Companies

Posted on:2004-01-16Degree:MasterType:Thesis
Country:ChinaCandidate:L WangFull Text:PDF
GTID:2206360122970718Subject:Accounting
Abstract/Summary:PDF Full Text Request
After the entry of 21st century, accounting for impairment of assets has become the central issue concerning the regulation of accounting system around the world, owing to the increasing change in the economic environment that the enterprise are involved in. The regulation of accounting is expected to reduce the information asymmetry and to provide the investors with valuable decision-making information .In our country, with the development of the security market, Ministry of Finance has formulated a series of accounting polices on impairment of assets, so that the quality of the enterprise assets can be truly reflected, thus, the effectiveness of accounting information will be improved. However, according to the annual reports of the listed companies in recent years, accounting polices on impairment of assets is adopted by the listed companies as a tool for profit manipulation. The focus on this paper is to study what kinds of elements affect the listed companies' carrying on the policy.This paper use both qualitative and quantitative method to study the theory hypothesis problem about accounting option in the reserve for impaired assets in china, including theoretical background, policy itself demonstration, especially highlighting the positive research on the elements which affect the listed companies to implement the accounting policy on impairment of assets. We introduce the theoretical background of the reserve for impaired assets from the valuable viewpoint, venture viewpoint, with the decision-making viewpoint as our starting point, then, with the assistance of the foreign and domestic document of accounting option, we analyze the theory hypothesis of the reserve for impaired assets, and conclude the elements that affect enterprises' choosing accounting policy on impairment of assets. The elements are the basis of our positive research. While analyzing policy, we apply the accounting standards to the analysis of how this policy grants the enterprise accounting option right, and to the analysis of inevitability and rationality the accounting principles grant the enterprise. In the positive research, we divide it into two parts to analyze the above elements. In the first part, we established a linear regression model, which has the three accounting hypothesis, security market supervision policy, industry factors, etc as its independent variables, chooses the 631 listed companies in the Shanghai A share market in 2001, as its target. SPSS is applied to the descriptive analysis and regression analysis. Finally, we give the explanation with the combination of internal political and economic environment In the second part, we choose the "ST" company as the sample and make tendency and comparison analysis of the sample companies while implementing the policies on impairment of assents within 5 years. And the conclusion of the second confirms the first part. The Sample data are from "Data in the Annual Reports of listed company, 2001 "edited by Shanghai security information Co. Ltd, some are referred to www.cnlist.com and www.p5w.net. The paper is closed with some suggestion from the writer.
Keywords/Search Tags:Accounting policies, Impairment of assets, Decision-making viewpoint
PDF Full Text Request
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