Enterprise Long-term Equity Investment’s Recognition And Measurement Studies

As the development of our country’s market economy and the improvement of the financial mechanism, equity investment in the capital market is becoming more common, become one of the important channels of strategic activities to effective use of their own capital. Enterprises’purpose of the equity investment is varied, such as decentralized management risk, expanding the scope of the enterprise management, improve the investment return rate as well as the realization enterprise strategic transformation, etc. It is because of the diversity of the equity investment purpose and the characteristics of the domestic financial market itself, the equity investment has been hotspots and difficulties in research of accounting. For a long time, the domestic accounting professionals from every angle and position carried on the exploration and research, make more perfect equity accounting standards, to meet the growing market demand, ensure the normal operation of the market and to coordinate the interests of all parties at the same time, also promoted the sustained and healthy development of the equity market. On March 13,2014 The ministry of finance issued <the revised about print and distribute "accounting standards for enterprises no.2-long-term equity investment"> notice, the revision made long-term equity investment accounting standards improve, not only achieved with the international convergence of accounting standards, and in the long-term equity investment accounting processing system specification, the rules of the increased the coordination with other accounting standards, reduce the accounting practices of the long-term equity investment accounting treatment difficulty, to regulate equity market operation and improve the quality of accounting information has important significance. But the newly revised accounting standards also faces significant challenges, on the one hand, while the new revision of the long-term equity investment accounting standards compared with the original accounting standards more system specification, but for some long plagued equity investment in practice and theory of accounting has not been effective to solve problems. On the other hand, things always are constantly developing and changing, the solution of the problems must be accompanied by the emergence of new problems, it is conform to the law of development of Marxism things.Based on the present situation of our long-term equity recognition and measurement is introduced, the recognition and measurement of international of the long-term equity investment and the recognition and measurement of long-term equity investment in China and to the contrast and analysis, elaborated the significance of the revision and actively find problems and on this basis, provide the relevant Suggestions, in order to have beneficial effect on the development of accounting theory and practice in our country.