A Study On The Application Of Accounting Policy For Asset Retirement Cost

In our modern society, the air quality is getting worse, haze occurs frequently and even intensified. All of these have been a serious threat to people's health. Corporate responsibility and environmental protection have been mentioned more constantly. Fortunately, the new Accounting Standards for Business Enterprises which promulgated in 2006 have introduced the concept of assets retirement obligation firstly. The standards clearly pointed out that the enterprises should bear the obligation of environmental protection and ecological restoration.However, after careful study of the accounting policies and the analysis of the implementation of asset retirement cost at home, it is not difficult to find out that our standards are still in the initial stage either in actual practice or theoretically. And there is a big gap between the international advanced level and ours. In theory, there are only several scattered provisions for disposal costs in our standard; in practice, there are also some problems, such as that the number of company that has retirement cost is too small, the accrual amount is obviously insufficient and the information disclosure is at all levels. The main cause of these problems lies in the narrow orientation of our accounting policy, the inadequate policy and the absence of the supporting policies and measures.Based on the theory of the asset retirement obligation accounting policy, the thesis puts forward reasonable suggestions which contains the accounting of confirmation? measurement and information disclosure, it has formed a set of theory of solid foundation, operation and practical asset retirement obligation accounting policy.Finally, combining the specific cases, this thesis demonstrates the improved accounting treatment of asset retirement obligation. Also to some extent it has proved the operability. We hope that this thesis could play certain reference significance for the future enterprise accrued retirement costs, simultaneously could strengthen the understanding of retirement costs for financial statement users.