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The Research on Asset Impairment of Chinese Listed Companies

Author: ZhengZuo
Tutor: JiangGuiLi
School: Jilin University of Finance and Economics
Course: Accounting
Keywords: Impairment of assets Reversal of impairment Earnings Manipulation New Accounting Standards
CLC: F275
Type: Master's thesis
Year: 2010
Downloads: 908
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Abstract


With the capital markets are maturing, growing concern about the usefulness of accounting information. In recent years, the development of asset impairment accounting to some extent, regulate the behavior of enterprises, greatly improving the quality of accounting information. However, due to loopholes in accounting policies, together with the special nature of asset impairment accounting itself, given considerable arbitrariness in the practical operation of the asset impairment gradually reduced to a listed company profit manipulation tools, which led directly people to question the credibility of the accounting information provided by listed companies, contrary to the original intention of the countries to develop policy for impairment. 2006 new enterprise accounting standards recognized impairment of assets, allowances and reversal were further standardized, the most prominent of which is to require the impairment of long-lived assets \to curb the behavior of listed company assets impairment adjustment of profits. In this study the theoretical basis of the asset impairment accounting, theoretically analyze the significance of asset impairment accounting. Review of the development of Sino-US asset impairment accounting norms, to learn from the valuable experience of the United States in the standard-setting, and the new Accounting Standards for Enterprises in China, in theory, to give a preliminary evaluation. And then combined with three listed companies in China from 2005 to 2008, asset impairment specific cases, analysis of the practical application of asset impairment accounting. The study found that listed companies in China in the new \further specification. However, because the policy is still space to the left of listed companies, not completely curb their use of the asset is impaired behavior of profit manipulation. Finally, after the implementation of the new standards, there is still the problem of asset impairment accounting, that the provision of asset impairment, reversal, disclosure and external regulatory problems, and put forward the corresponding countermeasures. Through research, I think it should first strengthen the norms in the scope of the provision and disclosure to limit corporate assets impairment of randomness from the source. Impairment of current assets, to clear reversal of conditions; For long-term assets, since the prohibition of the reversal of the impairment of long-lived assets, we can not accurately reflect the true value of the asset, but also can not completely curb the abuse of the provision for impairment of behavior, it should be improved in the above-mentioned problems, the gradual liberalization of the reversal of the impairment of long-lived assets. At the same time, you also need the correct guidance of the external supervision and internal control, to create a favorable environment for the healthy development of our asset impairment accounting.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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