The Study On Provision For Impairment Of The Listed Company After The Implementing Of The New Accounting Standards

In2006, the Ministry of Finance released the new accounting standards of assets impairment with the purpose of blocking up the listed corporation manipulation by means of assets impairment. In the new standards, return the loss of the asset impairment is prohibited which is different from the old accounting standards. And the breaking out of the financial crisis in2008was seriously affected the development of the industry China’s manufacturing industry. It is expected that the listed corporation will recognize the impairment in large. Both of these give us a good chance to study the asset impairment behavior of the listed corporation.This paper use the way of empirical study to research about the asset impairment situation under the financial crisis circumstance of A-Shares in Shanghai Stock Exchange from2007to2010.The description of the sample shows that the public company recognized different value of asset impairment in different years and the analysis of variance confirmed the difference is significant. Statistic shows that in2008and2009, corporation recognized more assets impairment than2007and2010. Meanwhile, the analyze results of the profitable firms and the losing enterprise shows that there are more number of the latter firms recognized impairment. The independent samples T-test confirmed the difference is significant. Use the regression methods to analyze how the economic factors and the earnings management factors affected the recognition of the long-term asset impairment and the current asset impairment. The regression analyzes results shows that the recognition of the long-term assets impairment has no relationship with the earnings management factors; on the contrary, it’s the true reflection of the assets damaged.But the regression on the current assets impairment shows that the losing enterprise has the behavior of recognize more impairment with the purpose of the "big cleaning".The empirical results shows that the implementation of the new accounting standards inhibited the public company using the long-term asset impairment to manipulate the earning, but there are still losing corporation using the current asset impairment to do the clearing. The new accounting standards cannot block up all the gap of the manipulation methods.With the consideration of the empirical test results, it is thought that the corporation accounting standards can standardize the corporation behavior in a certain extent, but as a compulsory system it cannot resolve the essential problem. Following measures should be done if we want to resolve it:Perfect the internal control system of the assets impairment; enhance the accountant’s comprehensive quality; strengthen the external audit; improve the performance evaluation system. Only through these means, the value of the impairment information can be improved.