Applied Research On Valuation For Financial Reporting

From the practice situation of the industry in recent years, this evaluatingbusiness in our country has not yet been fully developed. In fact, the business has notbeen substantial development due to the other systems, the cost and risk reasons. Withthe domestic industry to increase the promotion of fair value accounting in theaccounting field, the demand for this business is bound to gradually increase. But infact, there are still many difficulties for making this evaluating business applied to thepractice in China. Since the fair value is applied to the impairment of assets inAccounting Standards, Assessment of impairment of assets is the business areas ofgreatest demand in the Research on Valuation for Financial Reporting. Especially afterChina’s accounting standards require asset impairment can not be reversed onceconfirmed, impairment of assets should be more precise requirements, as it relates tothe subsequent measurement of assets and the quality of accounting information.I will be on the basis of existing cases, and with the normative and empiricalresearch a combination of methods, and gradually expand the analysis. In this paper,the author firstly introduces basic information at home and abroad about valuation forfinancial reporting and asset impairment, on that basis the following theoretical andpractical researches can be better understood by readers. In the theoretical researchpart, this paper describes the concepts of asset impairment, the relationship betweenaccounting for impairment of assets and asset impairment assessment clears thescientific of assessment of impairment of assets and further analysis of the basicelements of the assessment of impairment of assets. Afterwards, the author does somefurther research on the differences between valuation for financial reporting andtraditional valuation. Secondly, I analyze goodwill impairment test analysis theory,explaining the concept of goodwill impairment testing, evaluating ideas, and predictthe future cash flows and fair value less costs of disposal of the net. In the practicalresearch part, the author first chose a typical and more common assessing practicalcontent, that goodwill impairment testing and evaluation, described its evaluation ofideas, methods and practices in the evaluation process; once again, with practice, Iwill introduce the true practice of rating agencies conducting impairment testing ofgoodwill----namely KK Petroleum goodwill impairment test cases empirical analysis,detailed analysis of the overall evaluation process of the case and finally a summaryof the case and review. In the final, the author describe we perform the assessingbusiness for financial reporting needs to pay attention to some issues in practice.