Research On Related Issues About Accounting Standard For Non-monetary Assets Exchange

Non-monetary assets exchange is a special and nonrecurring transaction with some non-monetary assets, such as inventory, fixed assets, intangible assets and long-term equity investments. These transactions, one the one hand, provide new approaches for enterprises to meet the needs of production and operation and expedite the turnover of their funds, but at the same time, they have led to some problems, such as some companies making use of non-monetary assets exchange to manipulate their profits, which have a greater impact on accounting theory and practice. So, it has become an urgent issue that how to regulate the accounting treatment and the disclosure of related information of non-monetary assets exchange.In China, the first accounting standard for non-monetary transactions which introduced and made fully use of fair value and achieved international convergence of accounting practices initially, was issued by Ministry of Finance on June 28, 1999 and was implemented on January 1, 2000 in all enterprises including listed companies. But just over a year's time, due to listed companies using fair value to manipulate non-monetary exchange profits, the criteria had been revised to measure the valuation of exchange assets at book value and basically stopped the use of fair value on January 18, 2001. On February 15, 2006 the Ministry of Finance issued . Compared with the original of 1999 and revised edition of 2001, the new accounting standard has some new changes, such as an evident "guiding principles" and introduction of the "commercial real" and redefinition of the fair value position and role, to reflect economic real of non-monetary exchange and assets to ensure authenticity of business assets and profitability. Nevertheless, the new standard still exists some questions and needs to perfect.This thesis is going to find and analysis the issues and flaws lying in the Accounting Standard for Non-monetary Assets Exchange of China, and to point out some other related problems brought by business non-monetary assets exchange, through comparing the Accounting Standard for Non-monetary Assets Exchange between China and America, IASB. The objective of this thesis is to put forward corresponding improvement suggestion and solutions to some related problems.