Research On Impairment Of Assets Of Listed Company

In view of the general existence of unreal assets and profits in the limited companies, especially the listed companies in our country, all social circles has paid more attention to reality and accuracy of financial information. The provision for impairment of assets can reflect financial condition and assets quality really, and can provide entire and accurate financial information for the public. This method not only accords to the principles of caution and steadiness, but also is benefit to healthy development of security market and ensures the system of socialists economic. The thesis is written when the Ministry of Finance has published the codes about the provision for impairment of assets and International Account Standards No.36—Impairment of Assets has gone into operation for few years. It aims to elaborate the influence on condition of assets and achievements from the provision for impairment of assets, and give some individual ideas, by analyzing the 2002-2004 annual reports of the listed companies. The thesis was divided into four chapters: Chapter I was the summary of impairments of eight kinds of assets. It described the status of impairment between China and overseas, and analysis the potential problems in provision of impairment of eight kinds of assets. Chapter II mainly analysis the effect on profits after made provision for impairment of assets. It analysis the effect on costs, expenses, tax and profit separately. Chapter III summarized the stats of impairments of assets of China firstly, then point out the problems existed in provision of impairments, and find out the reason for problem existed. Chapter IV made some suggestions for above mentioned problems to specify and perfect provision for impairment of assets.