Research On The Accounting Calculation Of The Highway Asset Overhaul In The BOT Model

With the wide application of the BOT model, the problem emerges gradually about theaccounting calculation in the BOT model. Although the BOT accounting recognition has beenspecified definitely, the most obvious issue is that no theories or standards can conduct theaccounting of the subsequent expenditure in the BOT process. So it will generate a series ofrelevant matters that what the attribute of the asset overhaul in the BOT model is, what thetheoretical basis is, how to reflect the overhaul in the accounting practice and so on. Becausethis phenomenon has appeared in the financial reports of expressway listed companies, itneeds to study instantly for the accounting calculation of the highway asset overhaul in theBOT model.The paper mainly researched the accounting calculation of the highway asset overhaul inthe BOT model, involving its specificity, theoretical basis, practical proving and specificaccounting. It is described as the following:First, through existing researches and the practice, the paper indicated a series ofproblems in the accounting calculation of the highway asset overhaul under the BOT model.And from the accounting recognition of the franchise right and the subsequent expenditure ofthe high asset, the paper analyzed the specificity of the accounting calculation of the highwayasset in the BOT model.Then, after analyzing the nature of the highway asset overhaul in the BOT model, thepaper considered that the highway asset overhaul should belong to the overhaul field, but itsspecificity could influence its accounting calculation.Next, based on this specificity, the paper explored the theoretical basis and tested thefeasibility in practice. For the most important issues in the accounting calculation of thehighway asset overhaul in the BOT model—the accounting recognition of the highway assetoverhaul, the paper proposed that recognize it as the long-term deferred expenses.Finally, in consideration of the existing theories and standards, the paper presented thespecific commends on the accounting calculation of the highway asset overhaul in the BOTmodel and summarized the researching conclusions on the accounting calculation of thehighway asset overhaul in the BOT model. The concludes pointed out that the highway assetoverhaul belongs to the province of the overhaul; capitalization is needed for the highwayasset overhaul; it includes four parts to calculate that accumulation, carry-over, amortization, and disclosure.