Research On Improvement Of Accounting Standard For Business Enterprises No.3-investment Property

Accounting Standard for Business Enterprises No.3-Investment Property(the abbreviation is CAS3)which is combined with the reality of our country is based on the reference of international accounting standard.In addition to the standard itself,there are corresponding explanations and application guides and other supporting documents.Since2007,it has been running in public corporations.For more than ten years,it has worked well.With the operation of the new accounting standard,the differences between the corporations listed in the mainland and Hong Kong have been largely eliminated.As a new accounting standard,CAS3 play their due role.But there were some problems in the practical application,For example,there is an inconsistency between the standard and its supporting documents,which may lead to different understandings of different companies,resulting in impairing horizontal comparability of accounting information.This paper mainly use case analysis,quantitative analysis and literature research to study the selected subject.Based on a comparative analysis between Chinese and foreign accounting standards and relevant documents,Combined with the current situation of the second-hand real estate market in China,the system of ticketing trading,property law,contract law and other relevant knowledge and information,The focus is on the study of three types of assets:a building held for transfer upon capital appreciation,a real estate used for operating lease that has not actual leased out and a real estate that financing rent-in used for operating lease-out.The following Suggestions are made on CAS3:(1)A building held for transfer upon capital appreciation is dealt with this standard in order to resolve the difficulty that how to divide them into a reasonable asset class;(2)Modify the "that is leased out" statement in Article 3 of CAS3 to "held to earn rentals",The property that will be used for rent shall be recognized as investment property,make sure that the relevant documents are semantically coordinated;(3)A real estate that financing rent-in used for operating lease-out,no matter whether it has actual leased out,it shall be recognized as investment property.The fair value model shall not be used for measurement until the enterprise gets the ownership of the property,because the fair value change of the asset has nothing to do with the enterprise if it doesn't have ownership.My intention is to make the accounting standard more perfect and more consistent with international accounting standard through these Suggestions;The research of this paper has some theoretical and practicalsignificance on how to solve the practical problems faced by enterprises through the understanding of accounting standards.