Accounting Based On Asset Impairment

There are sound accounting principles in the recognition, measurement of accounting information in a very long time, but for accounting information is still unable to determine the pros and cons, which is due to the different levels of development between different countries, the conclusion are not the same. In recent years, although the FASB (2010) and IASB (2010) are in the conceptual framework of its financial reports to the robustness of the lack of "neutrality" as an excuse, the accounting conservatism to the exclusion principle; however, so far no country excluding accounting conservatism in the conceptual framework of the financial report, only weakened the requirements for accounting conservatism in the new accounting standards.The impact of accounting conservatism principle most important factor is the company’s provision for impairment of assets. At first, the development of China’s Ministry of Finance, the original purpose of the asset impairment criteria is to make the company’s financial information is more real, more accurate financial disclosure reports are better. However, in recent years, experts and scholars of our country through the financial statements of listed companies found that impairment of assets of listed companies has violated his mind and became a listed company as a means to manipulate the company’s profits. The accounting conservatism principle provides the most "perfect" excuse, gradually becoming more harm than good. Develop initial accounting conservatism, conservatism principle does have a role to ensure the authenticity of financial information, but with the development of social economy,the focus of accounting information useful for decision-making has also begun to shift from concept concept of fiduciary duty, accounting conservatism principle limitations and the contradiction between the decision-useful concept is gradually becoming prominent.2006China promulgated new accounting standards further emphasized the role of accounting conservatism but steady weakening of the requirements for the provision and reversal of assets also made more stringent norms and regulations. The purpose of this paper is to study the robustness of accounting under the new accounting standard exists, impairment of assets ready to make major adjustments after whether the principle of accounting conservatism inhibits purpose enterprise profit manipulation.For these purposes, this paper normative and empirical research to support the theoretical basis to do, selected2007-2013in Shanghai and Shenzhen two a shares of listing corporation as a sample, expanding the time window while finishing their financial data is out of more authenticity, and is now more important to increase the establishment of a new variable in model2. The results show that:the existence of accounting conservatism as a whole under the new accounting standards on China’s listed companies and accounting earnings conservatism is reduced; the ratio of provision for impairment of assets, the higher the better the impact of accounting conservatism.