The Research On The Valuation Of Non-current Assets Of Local Government In China

The local government debt risk in recent years has caused the academic attention while lack of the valuation methods,while the demand to compiling the local government balance sheets is geetting higher and higher.However the requirement has long been hampered by the lack of valuation methods for assets,especially for the valuation of non-current assets.According to the classification of non-current assets in the basic principles of the "Government Accounting Standards",the valuation problem is concentrated on two types of assets,which leads to two main problems for the valuation of non-current assets of local government.One problem is the valuation methods of fixed assets in the past hasn't taken into consideration of depreciation and inflation factors.Another problem is the lack of a valuation method which can measure the comprehensive resource value from the ecological,social and economic aspects,which brings many problems to the government associated with scientific decision-making of fixed assets.On the basis of defining the scope of the fixed assets and resource assets of the local government,the paper sorts out the categories and valuation objects of them.Based on the PIM model the extension of the model by Chinese and foreign scholars,the paper rebuild the model to make it applicable to the valuation on Chinese local government housing,equipment and other economic fixed assets.By calculating the value added in fixed assets each year,price index,the stock of fixed assets at the beginning year and the depreciation rate,the paper works out the replacement value for each kind of fixed asset of the China provincial government from 2000 to 2016.For resource assets,based on the fuzzy mathematical model,the paper seperates the value of resource assets into three aspects,which contains the ecological,social and economic value,and build the valuation model.The paper tests the model according the valuation of forest resource assets for each provincial government.The valuation of non-current assets,which mainly consists of the valuation of fixed assets and resource assets for the local government,not only provides the basic data for the management of assets and liabilities of the local government and contributes to laying the foundation work of financial management,but also maximizes the benefits of government fixed assets,provides basis for the financial planning at the central government level and decisions of the local government at the provincial level.The valuation of natural assets can also provide standard to the outgoing resources audit for the local government,Support the implementation of the compensation mechanism for the losses of resource assets and provide ideas for the improvement of government accounting standars at the same time.