The Study On Asset Attribute And Relevant Accounting Of Franchise Projects Under BOT Model

Along with the rapid development, the domestic infrastructure construction is of greater significance and highly in demand. The government, the protagonist of the infrastructure construction, begin to allow a wider and deeper participation of private capital (like BOT), as a outlet of the huge pressure of the financial deficit. One of the challenges that come along is the demarcation of the asset attributes of those franchise projects. Another is about the accounting and those consequent influences of various accounting methods. Therefore, the asset attributes of BOT projects in infrastructure construction and the relevant accounting attract a growing number of scholars all over the world.This paper mainly discusses the asset ownership and the relevant accounting of the franchise projects in the very pattern of BOT, specifically including:First is the crucial function of the BOT pattern for the domestic infrastructure construction, coming after some definitions and concepts of BOT and following by the necessity of this paper. Second part begins with the features of BOT, then discusses the capital attributes of franchise projects, ends with influences to the project-owned company as well as traits that lie in the different accounting mode, which are concluded from a comparative case study about Shandong High-speed Group Co.LTD and Hainan Expressway Co.LTD. In the last part, the reasons of the gap between theories(coming from the case study) and practical operations (generated from the behavior of those listed companies that own any BOT project) are discussed, together with the deficiencies and the corresponding suggestions of the Accounting Standards for Enterprises No2.