Land assets under the current guidelines of accounting information disclosure issue discussion

[Abstract] Article in the context of the socialist market economy, business-perspective, the main method of qualitative analysis, the use of accounting, Economics and other relevant knowledge and theory, to follow accounting theory research ideas, recognition of corporate land assets, accounting information disclosure and other accounting issues, pointing out that the current financial report from the improvements and the establishment of non-land assets of the two aspects of the financial information report for full disclosure of the land asset information.

[Key Words] land assets, recognition, disclosure

Since 1987, the Shenzhen Municipal People's Government will be an agreement to sell state-owned land use right to import and export company in Shenzhen China Aviation Industry Center has paid the land use system across the country, but such a system of paid use of land primarily for the purposes of incremental state-owned enterprises had achieved most of the stock will still be allocated land use right, land value can not be reflected. SOE Reform in the strength and disposition of land is very limited measure, even by way of land use rights, or complete the restructuring through land disposal of land use rights to obtain ownership of the original state-owned enterprises, the use of land assets are only in a crude state, that is still only land as production and business establishments because of land assets is different from other general characteristics of assets, the management of land assets There are also different from other operating characteristics of asset management, business management as an important aspect of the land asset management at this stage have not generally been valued by enterprise managers and grasp. There is a need for further research company land assets accounting objective reasons for the problem due to land acquisition in different ways, at this stage would land assets included in fixed assets, intangible assets or Investment real estate in various different ways of processing enterprises have land assets confirm the lack of a unified, standardized system requirements , causing confusion in the accounting treatment, does not reflect the true value of land and related assets disposal information. The disclosure of information in land assets, current assets of the financial statements of the land there is insufficient disclosure of accounting information. The first is land assets does not reflect the true value of the current guidelines require that land acquired by trading assets in the Financial Accounting reports to identify and disclose, and use of historical cost measurement attributes can be used as the performance of the company's future profitability of the land over assets, but can not be measured in present value, followed by land assets can not be full disclosure of information content in the current Financial Accounting report does not disclose the company's land assets have more projects, and, as a unified use of monetary measures, so many related intangible assets, an important reference for policy makers, and difficult to measure in monetary terms of the important information, not reflected in the Financial Accounting report, therefore, the land asset information disclosure issue research on companies and investors are important because of the special nature of land assets and corporate status of the operation and management of land assets, the paper company land assets accounting analysis and study, to adapt to our current state of development, to solve practical problems in China's enterprises, is conducive to enterprise-wide, comprehensive management, accounting of all of its assets, in order to improve China's market economy development.


A research review

China's implementation of public ownership of land, the land system and the Western countries are different, so the domestic assets of the land study focused on the ownership of land assets, properties and the nature of the discussion, in addition, as the land reflects the value of corporate assets plays an important role , business manager of the land assets has increased in importance, so the land assets of the financial management and Investment decision-making research are increasing.

First, the characteristics of land resources and land price determined by the specificity of Land resources both natural attributes, but also the Economic attributes. Land resource production is pArt of its natural attributes, use of land resources values ​​its Economic attributes. Can not believe that the land is not Economic attributes, or that the land's natural attributes are "resources", the Economic attributes of an "asset" (Ye Yan-mei, 1996 Land prices of both land resources due to the formation of monopoly prices, but also the monetary expression of labor to create value for the price, it is the price of natural resources and labor to create value for the price performance of the unified currency (Zhang Zhenhua, 1995.

Second, the nature of the ownership of land assets. Li Hui (2002 believes that a company as a legal entity can only have land use rights, land in use by businesses, the state has required the power of expropriation without compensation at any time, and the corporate land use rights can not exercise control, so regardless of the company acquired the land use right is paid the price, the enterprise should be accounted for as intangible assets. He Jianrong (2004 that the land and buildings to two different properties, different life different value of the transfer method of accounting for asset mix is ​​not standardized, that in the accounting practice, can not form fixed assets of land assets and still be accounted for separately as intangible assets. Some academics have also raised objections, Hai-Tao Zhou, Ding Yantao (2005 that the land use rights The value of the property is not determined by the value of intangible assets, the general principles of land use right of land ownership is essentially similar to the real property, land use rights vested in fixed assets in line with international accounting practices, the land assets should be fully integrated into the scope of the accounting of fixed assets . Dawn, Huo Wenbo (2003 proposed land-use rights should neither be included in the accounting of intangible assets subject should not be through construction, into the fixed asset accounting, but the land use rights for the best interests accounted for separately. Causing et al ( 2002 that the land use right value and one for ground attachments and shortcomings as a fixed asset accounting, and that the land use right can be accounted for separately. Yan Shu-chi (2007 that the International Accounting Standards, the Anglo-American countries such as accounting standards as a fixed land asset accounting, is associated with private ownership of land, and our policy is socialist public ownership of land, land accounted for separately in line with China's national conditions, not blindly copy the practices of Western countries. Ye Bin (2002 that, for the allocated land use rights, as neither company can not have effective control of its implementation, it does not meet the definition of corporate assets, can not be considered a business asset.

This shows that domestic scholars dispute the nature of land ownership of assets is common, the land assets as fixed assets or intangible assets or accounted for separately, depending on the characteristics of the assets of land assets, which is determined by the land system in China, but from history to the present nature of the ownership of land assets not yet clear.


Second, accounting standards, the norms of land assets

Assets, is an enterprise over the past transaction or event, and by the enterprises owned or controlled, is expected to impose Economic benefits of resources. Recognized as an asset to a resource not only meets the definition of an asset, but also satisfy the following two conditions: First, with the resource-related economic benefits are likely to flow to the enterprise. Second, the cost or value of the resource can be reliably measured. The basic feature of asset profitability. Assets through value-added production and business activities continue to become property owners a steady stream of revenue. Another important characteristic of assets is a clear relationship between ownership and in certain socio-economic system, assets always a property rights owned and controlled, and that property rights must have possession of assets, use, benefits and rights of action, otherwise the value of assets can not exercise, it can not be assets. As mentioned earlier land assets to meet the assets of the general characteristics, is an integral pArt of corporate assets, but because of land assets is different from the general assets of the special nature, makes the land also has assets in recognition specificity.

(A state-owned enterprise reform and land reform at the beginning, the land assets of state-owned enterprises accounting methods to confirm
A state-owned enterprises to use the land mostly obtained through free allocation, there is no accounting of the assets of the land, those who land acquisition compensation fee paid directly into the land the house, the value of the building, not as a separate recorded value of the land, its area and the acquisition of records for future reference. on land-related assets that, at most, is a state-owned land use certificate.

2 Ministry of Finance [1995] No. 108 <<checked assets of state enterprises in the financial deal with the problem of land valuation provisions>>: For companies in the past as separate fixed assets recorded in the land, should be confirmed after approval of the appraised value adjusted book value, according to the adjusted book value recorded separately, not depreciated for free access to administrative allocation of land according to law, companies should be confirmed after approval value, the capital verification agency in conjunction with the approval of the financial sector for dealing in fixed assets, while increasing the state capital fund. corporate administrative allocation of land occupied after the valuation recorded in the fixed assets reflected in a separate provision for depreciation. Transfer to other state-owned land use right to obtain, and the price is lower than the transferee where the benchmark land price of land, valuation, in the reference book to reflect on its book value of land use rights are not adjusted. Enterprises to invest in land-use rights or shares held in the domestic price of associates, joint-stock enterprises, the land assessment to confirm or not confirm the original contract price is significantly lower, and by the corporate authorities and other investors agreed to the land valuation. Valuation After the equipment check book separately from the company to reflect, they will not adjust the accounts.

3 According to the January 1, 2001 shall come into force <<accounting system>> account <<accounting system, "Article 47 provides that: enterprises to pay for land purchase or transfer land use rights obtained in the development or construction project has not been occupied before, as intangible assets, according to this system requires the amortization period. real estate development companies to develop real estate, should the carrying value of all land-use rights into development costs, companies due to the use of land own construction projects, land use rights transfer in the book value of all construction costs.

4, according to financial engineering [1995] 29 Man <<state-owned enterprises into companies converted Provisional Regulations on financial questions>> spirit of the state-owned land occupied by the evaluation and verification, the price of shares, as the country for processing.

(Two of China's land assets, the current corporate accounting requirements
As the enterprise reform and the transformation of operational mechanisms, the state enterprise's land use system has made major adjustments to business-to-land free of charge, indefinitely, without the use of flow into a paid, time-limited, the use of a flow. The land of China's enterprises assets in the current accounting system, specifically by since January 1, 2007 shall come into force <<Accounting Standards No. 6 - Intangible Assets >>,<< Accounting Standards No. 4 - Fixed Assets>> and <<Accounting Standards No. 3 - Investment Property>> regulate Specific provisions are as follows:
1 <<Accounting Standards No. 6 - Intangible Assets>> Application Guide six states: enterprises to obtain land use rights should normally be recognized as an intangible asset, but the right to use land-use change, to earn rentals or for capital appreciation , should be converted to Investment real estate. to develop and construct their own factories and other buildings, associated land use rights and buildings should be processed separately. purchased price paid for land and buildings should be in the building and land use rights distributed between the hard rational allocation shall be as fixed assets. Business (real estate development and acquisition of land for the construction of foreign sales of houses and buildings, associated land use rights should be included in the carrying value of the construction cost of houses and buildings. Our previous accounting practice for companies to own land-use rights say, when companies develop their own construction on the land to build factories and other buildings at the end of activities, land use rights will be affiliated with their houses, buildings together as a fixed asset for accounting, but along with the current implementation of the Guidelines, personal use of the land use rights will no longer be transferred to fixed assets, intangible assets in the enterprise has been there as this is the existing guidelines on the accounting system of land use rights is a major improvement.

2 previously obtained free transfer of land use rights are still recorded as fixed assets alone, get paid for their own use to sell land use rights as intangible assets. When enterprises are not accounted for the land use rights paid Share in the free download http://www.hi138.com Transfer, lease, mortgage, the price of shares and Investment should be required to pay the land transfer to be capitalized, as the recorded value of the land use rights, if the business is paid from the government or other units to obtain land use rights, it should be paid to the government's transfer payments to other units or the transfer of gold and the occurrence of migration compensation, site preparation costs, legal fees and other fees and measure included in the cost of land use rights.


Third, the land asset disclosure problems

<<Accounting Standards No. 6 - Intangible Assets>> Article 24 The accounting information disclosure requirements for intangible assets, intangible assets in accordance with the type of business should be disclosed in the notes the following information related to intangible assets: intangible assets at the beginning and Closing net book balance of accumulated amortization and accumulated impairment amount, life is finite, the estimate of its useful life, intangible assets with indefinite useful life, the life of uncertain judgments based on intangible assets amortization marketing approach, the book value of intangible assets for the guarantee, current amortization, etc., are recognized as profit or loss and research and development expenditure for intangible assets.

Land as intangible asset accounting information accounting information is an important part, should also follow this requirement, and, as the land is different from the general assets of the special nature of intangible assets, information disclosure should be given more attention. The existing land assets accounting Disclosure of the main problems are:
(A disclosure is not timely, not fully
Many businesses owned land assets in the accounting report makes no mention of, or during the land use right transfer, rent, etc., after disposal, to dispose of a result, disposal income is not reflected in the accounting reports in a timely manner.

(Two land assets, poor clarity of information disclosure
Often reflected in the consolidated accounting reports in a number of intangible assets, and no right to use such land for such a major impact on the company's intangible assets shown separately, outside of disclosure of multi-table, the table reveals less. Users of accounting information on assets sheet of the original value of land assets, the amount of amortization and impairment is not clear, the cash flow statement can not reflect changes in the value of land assets to cash flow movements.

(Three companies use to determine the value of land assets and the accounting treatment of the vulnerability of false disclosure, manipulation of profits

Fourth, the land assets of accounting information disclosure improvements

For intangible assets effective disclosure of information required to build intangible assets disclosure system, can make use of Financial Accounting reports and non-financial information to complete the report form in which disclosure of financial reports can be divided into financial statements and notes disclosed in the disclosure, non-financial information report is the situation of the land assets and other non-monetary measures of information disclosure.

(An intangible asset under a separate set of land use rights subject
In order to objectively disclose information related to land use rights, land use rights should first highlight the item's position in the financial report is recommended that intangible assets under a single set of land use rights subject to disclosure.

1. Disclosure of the balance sheet improvements. The state to sell, the price of shares by way of national land-use rights situation in the balance sheet should reveal the original value of land assets, accumulated amortization and net worth. Consider a separate land-use rights listed in intangible assets through the introduction of "land use rights", "accumulated amortization" and "land use right value," three items to reveal their relationship is as follows: "The original value of the land use rights - the right of accumulated amortization of land use = land use right value. "
(2) improve disclosure of income statement for the transfer of land assets, return on Investment income and foreign large enterprises in the "operating profit" project and "Investment income" under the established "one: the transfer of intangible benefits," "where: intangible Investment income "and other details of the project, the land use right under relevant revenue in their separately.

3. Disclosure of cash flow improvement in the cash flow statement "amortization of intangible assets" item should be listed separately in the primary table to reflect the cost of the year included the value of intangible assets, and will then increase the value of land assets and disposal of land assets to recover the cash value of the individual listed in the "amortization of intangible assets" under the project, to disclose the company's land assets increase or decrease the impact on cash flow. In addition, should be separately paid or received on a regular basis to reflect the amount of land rent.

4 Statements disclosed improvements. Statements to reflect those in the financial statements can not be sure, statements or non-quantifiable important information, including: (a detailed description of methods of land acquisition and valuation of assets based on, (2 properly disclosed land assets of the amortization period, the amortization method, amortization and amortized value, (3) disposal of land were set out in current assets and their disposal the carrying amount of foreign Investment income and current carrying amount of land assets and the changes in value, (4 rent land assets disclosed in the balance sheet date each year for three consecutive fiscal years of land use rights will receive lease payments in subsequent years will receive the land use right leasing receipts total assets of each of the leased land amortization, amortized value, (5 details the land assets as collateral and the amount of warranty period.

(Two non-land assets, the establishment of reporting financial information
Land assets of non-monetary measures is not a factor reflected in the financial report, it is necessary to set up a separate non-land assets of financial information reporting, full disclosure of land assets to the accounting information for the non-monetary measures of land assets, information disclosure, mainly on the the land assets of state enterprises to analyze and evaluate, and get it from, location, size, rent or transfer the total amount, unit amount, term, contracts, land permit number, and local policies and land use in areas such as disclosure of major Secondly, the assessment of land assets in detail the specific circumstances of disclosure the current land asset value is more than the assessed value of land assets, based on a detailed assessment of land assets, information disclosure will help users to evaluate the authenticity of accounting measurement The disclosure should include an assessment of the general contents of agency, valuation date and the number of years to assess the methods used to assess the value and summarized the calculation process.

In a market economy under the influence of the company's business become more complex, the lack of land assets, the accounting treatment standards, different approach. Overall, the current corporate accounting standards promulgated, the land assets of the accounting and prepared the way, but the importance and cost-effective under the premise of improved <<Accounting Standards>> the relevant provisions of the land assets of the enterprise should be accounting for more specific reforms.

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