Research On Confirmation And Measurement Of The Impairment Of Assets Group

A new Standard "The 8th Enterprise Accounting Standard--- Impairment of Assets" (CAS No.8) was promulgated by the Ministry of Finance on February 15, 2006 and then formally came into force at listed company on January 1, 2007. Such aspects as the identification of the possibility of the impairment of assets, the measurement of the amount of recoverable assets, the determination of the loss of the impairment of assets, the confirmation of assets group and the treatment of impairment of assets group, the treatment of the impairment of goodwill and disclosure are stated in detail in CAS No8. As different methods are taken when various companies estimate the amount of recoverable individual assets, the new standard borrows international rules and introduces the concept of"assets group", changing the basis of the measurement of the impairment of assets. And the new Standard establishes the regulation of the judgment of the impairment of assets (assets group), provides detailed measurement of the amount of recoverable assets (assets group), and also cancels regulation of the recovery of the loss of the impairment of assets and adds the content of the disclosure.However, it is the first time to put forward the concept of assets group in our country. There are still many issues worth discussing, especially as to the confirmation and measurement of the impairment of assets group, which needs further analysis and makes it more operational. Having a systematic research on the issue of confirmation and measurement of the impairment of the assets group in theory, it can deepen the theory of the impairment of assets accounting. Discussing the technology of confirmation and measurement of the impairment of assets group in practice , it can improve the enterprise's actual operational level in the impairment of assets group accounting .As these will have positive significance both enhancing our country's quality of accounting information and international convergence in the impairment of assets accounting.In view of these, this paper centers on the standardized research beginning with the theoretical issues of the impairment of assets and on the basis of the research results at home and abroad, it makes an overall analysis about the scope and identification of assets group and the confirmation and judgment of group assets as well as the measurement of the impairment of assets group through several typical cases combining with CAS No.8 with the method of comparative analysis. First, it tries to put forward a method based on the profit center to identify assets group and on the core assets as the signs for the impairment of group assets to judge the subject. Then, in the research into the measurement of the impairment of the assets group, it further puts forward a technological method to predict the future cash flow with the assets group as a whole based on the best use of core assets'function. Finally, here raise a number of recommendations for the sake of improving the level of confirmation and measurement of assets group.The full paper is divided into five chapters:Chapter 1: Introduction. It introduces the significance of the research, the status quo of the related issues research both at home and abroad, research goals, research methods and research ideas.Chapter 2: The theoretical basis of the impairment of asset t accounting. First, begins with the analysis about the concept of assets, assets group and the impairment of assets .Then, from the views of accounting objects, the definition of assets and the quality of accounting information to have discussed the theoretical basis of the impairment of assets group accounting. Finally, through briefly reviewing of the creation and development of the impairment of assets accounting in domestic and international, it leads the necessary to research the confirmation and measurement of the impairment of assets.Chapter 3: The research on the confirmation of the impairment of assets group .Through describing the scope and determination of assets group and the judgment of the impairment of assets group, the author puts forward the method based on the profit center to recognize the assets group and on the core asset as the signs for the impairment of assets group to judge the subject.Chapter 4: The research on the measurement of the impairment of assets group .It chiefly shows the testing procedures and measurement issues of the impairment of assets group by taking a number of cases combining with CAS No.8. And in light of China's current economic environment, it discusses the possibility of the recovery of the impairment of assets group.Chapter 5: Conclusions and recommendations. This chapter is mainly to come to the author's own conclusion with the researches above and give several pieces of advice for improving the impairment of assets group.