Study On China's Accounting Standards For Impairment Of Long-term Assets

In recent years, due to the impact of economic development, the value of enterprise's assets fluctuates obviously, the value of the asset impairment to be recognized it has become the important areas of the accounting profession. On January 1,2007 implementation of the "Enterprise Accounting Standard NO.8—Asset Impairment Accounting" promote the accounting standards for impairment of assets to the systematic development process. This new criterion is the result that the theory of asset impairment accounting is combined with practice under the environment of market economy at that time of 2007. Although the implementation of the new criterion of assets impairment has played a catalytic role in accounting information dependability and relevance, but any criterion will all present some questions in the design and implementation, especially in the case of changing socio-economic environment, asset impairment accounting will also be affected, this kind of influence makes assets impairment accounting in norm and practice present a lot of questions. In order to more accurately reflect the future profitability of the business assets, scholars constantly study this important accounting problem of asset devaluation, have proposed a lot of valuable suggestions in norms and practices for accounting criterion of assets impairment. Such an enormous amount of research results have offered the theoretical foundation for improvement and completion of the accounting criterion for impairment of assets.This article by reviewing the development process of asset impairment accounting, discussed the necessary conditions and future development trends about asset impairment accounting, standing on the basis of development of asset impairment, by researching the theoretical basis paving the way for research of our country criterion of assets impairment. Through comparing different regulations among the International Accounting Standards and domestic Accounting Standards for Business with No.8 criterion, pointing out the problem existed and the reason of these problems producing on the regulation of the No.8th on this basis criterion. These issues include:impairment of assets related to the problems of the asset group recognized, the problem of the estimated measurement of the recoverable amount, the problem of combined impairment of goodwill, the problem of asset impairment losses dealing with and the problem of information not comprehensive disclosed. Put forward the suggestion of better implementation asset impairment policies on the basis that the reason is analyzed. In the proposal I put forward a strong operational method of identifying an asset group, with knowledge of financial cost management about profit center and operating costs, propose acceding the natural profit centers and operations related resources consumed as the identified standard of asset group in the criteria. Proposed the establishment of the market price mechanism, enhance the quality of the financial staff and other measures to improve the estimation of the recoverable amount. Proposed the application of difference between the whole value and some value to measure the impairment of goodwill and improve disclosure of the long-term asset impairment. Through this study, I hope to make a contribution to the improvement of our country accounting criterion of asset impairment.