The Problems Of China's Intangible Assets, Accounting Standards And Recommendations For Improvement

The author had compared the Chinese Generally Accepted Accounting Principles (GAAP) in intangible assets with International Accounting Standards (IAS), US GAAP and Canadian GAAP, and had researched over one hundred accounting theses and dissertations in intangible assets. She provided the issues on current GAAP in intangible assets and advanced suggestions.The intangible assets are the main power in the developing intellectual economy. However, the current GAAP is based on the tangible assets. The financial statement users are not satisfied about the contents of the intangible asset reporting. The author has recommended establish the Generally Accepted Intangible Principles (GAIP) to improve the GAAP in intangible assets in the world.The value of intangible assets is significant to measure them, and is affected by their remaining useful lives. The author to enhance the accurate valuation of intangible assets promoted the advice of valuing intangible assets by developed methods, including the remaining useful life analysis. Additionally, other proposals were presented to prepare the overall information of intangible assets on the intangible reports. These proposals include developing the concept of intangible asset, separating land right of use from intangible assets, improving accounting processes of the expenditure of research and development and the disbursement after capitalized, and improving the amortization methods.