Research Of Investment Properties Accounting Standards Of China

To actively participate in the process of international convergence of accounting standards, standardize the process of investment property business, reflect the true value of investment property, provide decision-useful information to the users, which include investors, Ministry of Finance of the People’s Republic of China issued the "Enterprise Accounting Standards" on February15,2006and domestic listed companies were called to formally execute the standards from January1,2007. As an important part of the "Enterprise Accounting Standards", No.3-investment property is playing a significant role in the recognition, measurement and report of investment property and in cautiously, moderately introducing the fair value.In this paper, the positive significance of China’s investment property accounting standards is confirmed, at the same time, we point out differences in the definition, scope, confirm, measurement, conversion, disposal, disclosure of the investment property, through focusing on a comparison between domestic and foreign accounting standards. Comparative analysis of the differences is to better serve their perfection investment property accounting standards. Furthermore, in this article, we have conducted an in-depth analysis of usage of investment properties accounting standards from the macro and micro levels. On the macro level, the Ministry of Finance and the Securities Regulatory Commission published reports that the new accounting standards has been got steady and effective implementation in the listed company; we prepare to make a specific analysis of the implementation and the use of investment property accounting standards from the micro level, focusing on the North Star Industrial Company.We should have prospective to formulate accounting standards, focus on the orientation of the future development of market economy, actively participate in the international convergence of accounting standards. At the same time, we should also be pragmatic, respect the development of domestic real estate market, respect the accounting measurement practices in real estate of domestic enterprises. Based on the foreign accounting standards and status of domestic economic development, we call parts of investment property accounting standards into question and make some suggestions, for example, the scope of investment property should be further extended; respect and adhere to the "dual measurement" for accounting of investment property; quantitative criteria should be determined to make the operation more feasible; actively develop valuation techniques through creating the environment for use of fair value measurement model; encourage enterprises to establish and perfect sound management practices of the fair value measurement.