Research About The Applicationof Asset Impairmentaccounting In Companies Suffering Fiancial Distress

The market environment is changing rapidly,and the value of various types of assets owned by enterprises is changing constantly,in order to more objectively reflect the status of enterprise assets,asset impairment accounting arises at the historic moment.China's current asset impairment accounting standards "Accounting Standard for Business Enterprises No.8-Asset impairment accounting",enacted by the Ministry of Finance in 2006 and implemented in January 2007,to regulate the behavior of enterprise asset impairment accounting provides an important basis,but the standard to cover the type of assets is too broad,the process of confirmation and measurement is complex and changeable,the standard is difficult to cover everything.In the process of application,In the process of application,the flexibility and operability of asset impairment accounting becomes the tool of profit control for some enterprises,especially those in financial distress.The accounting information after the modification,not only mislead users make the wrong decision,but also affect the effective allocation of resources of the whole society,therefore,it is necessary to summarize and sort out the outstanding problems in the application process,indicate the direction for further perfection and improvement.China's securities regulatory requirements,listed companies net profit is negative for two consecutive years will be special treatment,for three consecutive years of net profit is negative,the stock cannot be traded longer in the Shanghai and Shenzhen Stock Exchanges,in this context,for urgent change report data and avoid being suspended,the application of asset impairment accounting in troubled companies may not be as standardized as the imagination.In this paper,we select the representative T company in this kind of company as the research object,through the case analysis,explore and analyze the typical problems in the use of assets impairment accounting in the enterprise,and puts forward suggestions for improvement.First,this paper reviewed the research achievements of domestic and foreign experts and scholars have made,and summed up and absorbed these achievements.Then,this paper analyzed the related theory of the asset impairment accounting,and discussed the essence of asset impairment accounting meaning,defined the financial distress.And then,according to the characteristics of the different types of assets,combining the T's six years of financial data from 2010 to 2015 got the analysis of the process of confirmation and provision,the influence of net profit.The results showed that,T company brought less or no impairment of assets in profit year,brought more impairment of assets in loss year,and reversed short-term assets unreasonably in the key year,these are non-normative acts that violate the original intention of the standard.Finally,according to the problems in the application of asset impairment accounting,this paper puts forward some suggestions to improve the current accounting standards,improve the external environment of the enterprise,and enhance the internal construction of the company,so as to help to solve the problems in the accounting application of asset impairment.