Study On The Accounting Problem Of China's Asset Retirement Obligations

In 2006,China first mentioned the asset retirement obligations in accounting standards,involving three accounting standards like <Fixed Assets>?<Contingent Event> and <Oil and Gas Exploration>.Although there are provisions for asset retirement obligations in accounting standards for business enterprises,it does not form a relatively complete accounting standards system at this stage,and the relevant accounting treatment regulations are not detailed enough.Therefore,the issue of accounting for asset retirement obligations in China remains to be further studied.This paper mainly adopts a combination of normative research method and case analysis method,in-depth research on the three aspects of accounting confirmation,accounting measurement and information disclosure of asset retirement obligations in China,and combined with the specific data of listed companies to analyze the existing problems.Meanwhile,on the basis of analyzing the problems,this paper puts forward practical and feasible improvement suggestions one by one,and then further analyze with specific cases to provide reference to other enterprises for the accounting treatment.First of all,this paper summarizes the similarities and differences between accounting confirmation,accounting measurement and information disclosure by comparing the criteria of domestic and foreign asset retirement obligations,laying a theoretical foundation for the development of subsequent articles.Secondly,this paper points out the problems existing in accounting confirmation,accounting measurement and information disclosure in China's current asset retirement obligations accounting treatment,and analyzes the specific data of listed companies.Furthermore,in view of the shortcomings,the specific suggestions are put forward to improve the accounting treatment in three aspects: accounting confirmation,accounting measurement and information disclosure.Finally,combined with the specific situation of SY company,according to the problem of accounting treatment,based on the viewpoint of this paper,it reorganizes and proposes improvement suggestions,which provides reference for accounting treatment about assets retirement obligations.In view of the shortcomings of China's asset retirement obligations,the author draws on the merits of foreign accounting standards and believes that China should deepen and refine asset retirement obligations on the basic of existing corporate accounting standards.In terms of accounting confirmation: the scope of confirmation should be changed to avoid obvious industry orientation,while abandoning the “more likely” confirmation criteria.In terms of accounting measurement: adjust the initial measurement method,clarify the future cash flow components and the selection of the discount rate;and make a detailed distinction between the adjustment caused by the revision of the present value estimation of asset retirement obligations in subsequent measurement.In the terms of information disclosure: the asset retirement obligations are separately listed in the statement of financial statements,and the changes of the asset retirement obligations is detailed in the notes to the accounting statements.