Long-term Equity Investment In Military Research Institutions

With the internationization of the Chinese economy, the accounting reform is marching towards international standardization too. Long-term equity investment and its method of calculating are the important content, and the analysis and research of the confirmation of long-term equity investments, the initial measurement, the subsequent measurement, accounting records, conversing and disposal method can help to grasp how to use the rules of long-term equity investment confirmation. measuring and calculating under the new standards in order to adapt to the accounting reforms and changes under the new situation. In February 15,2006, the《Accounting Standards for Business Enterprise》was issued to make the Chinese accounting move towards a new milestone, on the one hand, the new standards are the convergence of the Chinese accounting standards and international accounting standards, on the other hand, it also embodies the Chinese characteristics. At the same time, it plays a more important role in the restriction to the forensic accounting statements.Under the new standards,《Accounting Standards for Business Enterprise No.2-long-term equity investment》has greater revision in the definition, the initial measurement, subsequent measurement, amalgamation, the report form reveals and other aspects. Therefore, after the implementation of new standards, long-term equity investments, capital surplus, investment income, earned surplus, hold the maturity investments, fair value changes in profit and loss statements and other related projects will have a greater impact. Also, Military R & D institutions enterprise will have a greater impact on the long-term equity investment, investment earnings, fair value changes in profit and loss statements, holding the maturity investments, general funds, investment funds, welfare funds and so on. Further more, the implementation of the《Accounting Standards for Business Enterprise No.2-long-term equity investment》will have further impact on the capital operation and investment decisions of Military R&D institution enterprise.This paper will combine the methods of normative research and case studies, apply comparative analysis, integrate theory with practice to analyze the difference of long-term equity investment between the old and new standards for the causes and effects of quantitative or qualitative. This paper will make the accounting changes for long-term equity investments and the implementation difficulty in Military R&D institutions enterprise a breakthrough point, to represent the impact on inducting the long-term equity investments in Military R&D institutions enterprise and the advantages caused by using the new standards.This paper includes four parts:ChapterⅠ:Introduction to the main topics of the background and explained the purpose of the study, meaning, domestic and international literature review, pointing out this paper's framework and research methodologies.ChapterⅡ:Overviewing the long-term equity investments, focusing on the changing between the old and new standards for start, carrying on exhaustive exposition to the decision scope of accounting for long-term equity investments, transformation of cost method and equity method, goodwill recognition, reporting and disclosure etc. It also has a comparison of domestic and international accounting for long-term equity investment and foreign research status, and has a comprehensive analysis of long-term equity investments.ChapterⅢ:Pointing out the specificity accounting for the long-term equity investments in Military R&D institutions. This section is the focus of this paper, at the same time is the core of this paper. It is mainly from the specificity accounting for long-term equity investments in military R & D institutions as a start, point out how to apply long-term equity investments in military R & D institutions, also carry on exhaustive exposition about the difficulty of the recognition, measurement and determine the scope in long-term equity investments. At the same time, combine with practical work, carrying out the introduction of case-specific analysis.Chapter IV:Pointing out the strategy of accounting measures in long-term equity investments in military R & D institutions enterprise based on the three chapters above, making appropriate recommendations and countermeasures on the problems in the accounting for foreign investment.