Discuss The Issues Related To The Inventory Devalue Provision Under The New Accounting Standards

The new accounting standards system has achieved full implementation, on January 1, 2007. In order to serve as a catalyst to promote the further development of accounting standards, I analyze the new accounting standards impact on enterprises directly and indirectly and infer the effectiveness and the areas that still need be improved of the new accounting standards by analyze Company's response to new accounting standards. As a part of the current asset impairment, inventories devalue provision playing the role that can not be ignored. Some companies even use it as a major tool to regulate the profits. While the inventories devalue provision was treated as a separate part to analyze is not common in many articles. This is the reason why I chose this topic. In this paper, I mainly use cases and Statistical Methods to analyze the new accounting standards on the stock decline in value and its impact on business-related policies. The results showed that the new accounting standards is more scientific,exact,and operational than the old criteria. At the same time, there is still a lot of things should be improved. The new accounting standards require that it may not be reconverted when a long-term asset impairment has been picked-up.Then some corporate managers may less mention or not mention long-term asset impairment, in turn increase the liquid assets impairment to achieve earnings management.Full-text is divided into five parts:PartⅠ:Introduction. It is the umbrella of the whole article. Mainly describes the background of the study, significance, the method, the results of previous studies as well as the characteristics of this study and further research direction.PartⅡ:The economic analysis of stock decline in value under the new accounting standards. This section focuses on two aspects, first is the possible factors that affect the implementation efficiency of accounting standards. Second, the introduction of new accounting standards on the stock decline in value of the relevant provisions, but also the old and new accounting standards described contrast and convergence of international accounting standards convergence and comparison, as well as the indirect effects and direct impact of the new accounting standards on enterprises, and concluded the conclusions and enlightenment.PartⅢ:Direct impact of new accounting standards. This part mainly uses examples and analysis to explore something of the new accounting standards that should be affect directly to the enterprises.PartⅣ:Statistical analysis of indirect effects of new accounting standards. This part mainly uses statistical methods to explore the indirect effect of the provisions of the new accounting standards that long-term impairment of assets will be not allow to be recovered when be extracted.PartⅤ:The new accounting standards implementation results and recommendations. This section describes the contents of the conclusion on the basis of the previous summary of the improvement and lack of accounting standards, and put forward relevant policy recommendations so as to urge the further improvement of accounting standards.