Study On Accounting Treatment Problems Of China's Investment Real Estate

Since 2006,China promulgated the ASBE(Accounting Standards for Business Enterprises),and there has been no significant change in accounting standards related to investment real estate,Within a dozen years of the guidelines being implemented,more and more enterprises are turning the real estate into investment real estate for accounting which used to earn rent or hold and prepare for appreciation,however,there are still some problems in the recognition,measurement and disclosure of investment real estate in China's accounting standards for enterprises no.3-investment real estate,therefore,this paper mainly discusses the above three aspects.First,in terms of validation,this paper proposes the recognition of investment real estate under the separation of ownership and property rights,the recognition of a building that holds and prepares for appreciation,the recognition of land not yet designated for use,and the understanding of holding and preparing for appreciation.This paper makes an in-depth analysis of the above issues through the comparison of national standards and the rethinking of the issues.Second,in terms of measurement,this paper raises doubts about the single measurement model,through comparative analysis of national standards,pointed out that the purpose of holding investment real estate should be distinguished,different follow-up measurement methods should adopted for different holding purposes.Besides,In the disposal of investment real estate,the way of disposal should be differentiated,and the disposal gains and losses should be classified separately;Finally,in terms of disclosure,by comparing the differences of disclosure standards in different countries,this paper collects and sorts out the disclosure data of Chinese listed companies on investment real estate,summarizes the disclosure status of Chinese listed companies on investment real estate,and conducts an in-depth discussion on the problems existing in current disclosure.This paper mainly analyzes the accounting problems of investment real estate through normative analysis and relevant data,and puts forward some Suggestions.Including: in terms of confirmation,the property leased by the financing,the buildings held and prepared to increase in value will be incorporated,and the land that has not been identified for use will be excluded from the scope of investment real estate;In terms of measurement,the choice of dual measurement mode is allowed,and the real estate used for renting should adopt the cost mode,the real estate used for holding and preparing for appreciation should adopt the fair value mode,and the relevant disposal profit and loss should be included into the investment income and non-operating expenditure according to different situations;In terms of disclosure,the purpose of the holding of the investment real estate and the fair value of the investment real estate held and prepared for appreciation should be disclosed.