Research On Accounting For Assets Impairment Of Listed Companies

With the development of economics and progress of technology, accounting for impairment of assets has become the central issue in accounting field around the world owing to the increasing of uncertainty and risk in economic environment. In 1998 Ministry of Finance issued accounting rules for allocating impairment of four assets reserve, including allowance for uncollectible,short-term investments falling price reserve,inventory falling price reserves, long-term investment depreciation reserve,and carry out in overseas-listed company,Hong Kong Listed Companies,off-shore company with issuing foreign shares.In 2001 Ministry of Finance formally issued《Enterprise Accounting System》, where another four items of assets were added, and by then business could allocate impairment of assets reserve on accounts receivable, inventory, short-term investment, long-term investment, fixed asset, intangible asset, works in building, and entrusted loan. In February,2006《Accounting Standard for Business Enterprises No.8-Impairment of assets》was issued and formally implemented in 2007.1.1. The introduction of cas8 standardizes accounting behavior and improves the quality of accounting information. But in the implementation process, accounting policies on impairment of assets are adopted as a tool for profit manipulation.On basis of research on impairment of assets related to the theory and methods of dealing with, this article introduces provision for impairment of assets and analyses the existing problems of China's current accounting policy for impairment of assets.Firstly, this article discusses from the basic theory of accounting for impairment of assets, which include the definition of related conceptions, analysis of theory basics of it, and significance of executing accounting for impairment of assets in china.Secondly, this article mainly discusses the comparison on the recognizing,measuring,writing off and disclosing on Asset Impairment between our accounting system and the IAS36.The author examines Chinese current accounting regulation on the issue, and finds out many drawbacks, such as lack of specific measurement of recognizing and measuring the Asset Impairment, and the weakness in supervising the substantial disclosure. In a word, our regulations have too much flexibility, so the list company can make use of that to adjust the profit.Thirdly, it researches on the practice and the development of accounting for impairment of assets in our country.mainly collect the data of list company on Asset Impairment. From the data, the author concludes the characteristic and rule of how to recognize and measure Asset Impairment for our country's list company.At last, on the basis of above studies, this article puts forward the counter measure about perfecting the accounting norms of assets impairment in our country, improving accounting Personnel's overall qualities, setting up and amplifies the information and price market, strengthening outside audit and supervision on the basis of drawing lessons from western accounting standards for assets impairment.