Long-term Equity Investment Evaluation And Its Influence To Accounting

The main content of traditional evaluation is the assessment of real property. With the increasing market demand of assessment, evaluation penetrates into other areas slowly, such as long-term equity investment evaluation. Long term equity investment evaluation, is not only the assessment of a single or a few assets, it’s more of the assessment of enterprise as a whole using appraisal methods of enterprise value. In the enterprise financial accounting, long-term equity investment is often an asset with relatively larger amount, so its measurement and subsequent accounting is very important. After the introduction of fair value measurement in the new accounting standards, accounting for long-term equity investments now use more of fair value, while fair value needs professional technical assistance of evaluation. In the initial recognition of the long-term equity investment and impairment testing in the subsequent measurement, evaluation can give professional advice; accounting personnel can directly use the professional assessment results as the basis of accounting recognition and adjustment. Therefore, the development of accounting also increases the demand of the long-term equity investment evaluation, and promotes its development.In this paper, I choose the long-term equity investment evaluation as the research object, through comparative analysis of the content and the method of long-term equity investment evaluation, combining the evaluation theories related to the effect to accounting; in the case analysis, I use EVA enterprise evaluation method for the evaluation of BJ company’s YJ long-term equity investment, and then get the appraisal results. Finally, I analyze the evaluation results on the effect to the enterprise accounting, including initial measurement and the impairment test.In this paper, through the combination of theory and practice, the use of case analysis of long-term equity investment evaluation and analysis of its influence on the accounting to improve relevant personnel’s understanding of professional evaluation, to put forward how to use the assessment results as the basis of accounting treatment, to reflect the value of the company as a whole, to produce other helps to the company’s financial decision, thus to provide effective information for the company’s managers and other stakeholders, to promote the healthy development of enterprise.