A Research On Withdrawal Of Long-term Assets Impairment Provisions Of Shenhua Baoshen Corporation

With the rapid development of our country's economy,and with the guide of our policies,the continuous change of the internal and external operating environment of the enterprises brings many opportunities and challenges to the business prospects of enterprises.The unpredictable macro-environment has left the company's profitability unbalance.Unlisted companies may gloss over their financial statements in order to achieve their current financial goals,or the listed company may take some measures to beautify the financial statements in order to avoid the risk of delisting or to maximize its own interests.Due to the particularity of impairment loss of assets,the impairment loss of assets becomes an important way for enterprises to adjust profits.There is a certain degree of subjectivity in the provision of impairment losses.It's up to accountants themselves to decide whether there is a sign of impairment losses of assets,and if there is,the recoverable amount of an assets should be decided.Accounting estimates with too many subjective ideas will be used as a way to manipulate profits.Under the above circumstances,this paper selects Shenhua Baoshen Corporation as the research object.This company is a typically asset-heavy company.The company's fixed assets and construction-in-progress account for up to 60%of its overall assets.When the coal industry thrived,corporate managers were very optimistic about the future of the company and invested huge amounts of money in building railways.In the later period of railway construction,the coal industry was in a serious overcapacity,Demand for coal has fallen sharply,and the traffic for the railway has not been as expected.Whether the completed railway will bring economic benefits to the company as expected,at this time it is necessary to consider whether the railway has signs of impairment,If it does have,then it is necessary to test how much amount of assets need to be withdrawn for impairment preparation.During this process,because of the subjective nature of accruals for asset impairment provisions,it is an important way for corporate managers to manage earnings.By studying and summarizing domestic and foreign research,we realize the essence of the accounting of asset impairment and three motivation of asset impairment.Secondly,a conceptual analysis is made on the accumulated depreciation of assets,asset wastage and impairment of assets.After defining relevant concepts,this paper analyzes the targeted company's overall pictures of long-term assets and financial conditions from 2011 to 2015.Besides,this paper reveals the provision of impairment loss of long-term assets.In this paper,by analyzing financial conditions and the provision of impairment loss of long-term assets about the targeted company,we do find some problems about the provision of impairment loss of long-term assets.To solve these problems,we put forward some suggestions which are mainly proposed from the policy level and the level of the enterprise itself.