On the new asset impairment accounting problems and countermeasures

Abstract: Asset impairment accounting treatment of the problem, not only to the business and the state, enterprises and enterprises of interest, but also directly related to the business interests of shareholders and management disputes, these conflicts have a direct impact of asset impairment accounting implementation of the Guidelines results. true enterprise asset impairment provision, on the one hand is a technical issue, depends on the fair value of the study, but more importantly, on the other hand is the company's corporate governance structure and management credibility, which depends on in the community, business and general accounting staff to improve their own quality and relevant departments for effective supervision and management.

Keywords: asset impairment, confirmed that the internal control system, evaluation system

A new asset impairment accounting problems
New accounting standards are compatible with China's national conditions while full convergence with international accounting standards. With the implementation of the new asset impairment accounting, a lot of theoretical research, it has gradually shown the problems now, from our new accounting guidelines for asset impairment of specific provisions of view, asset impairment accounting faces the following problems:
(Recognition of an asset impairment is difficult to determine the basis
Guidelines for asset impairment accounting practice, some enterprises to individual assets and the estimated future cash flows expected to be very difficult reality, and the introduction of "asset group" concept. On the status of China's enterprise management mechanism and supervision of listed companies, the asset group is a new concept, introducing the concept of asset group will face a series of difficulties. The first use of the concept of asset groups, the need for a corresponding cash flow budget management level. Most of China's listed companies do not practice the preparation of long-term cash flow, management and accounting staff of the cash flow estimates general lack of experience. Second, the generally small size of China's enterprises, mostly SMEs, are still in the identification of an asset group will face many practical difficulties, from the actual management of our enterprises, the new guidelines for the provisions of the asset group to be well in the enterprise implementation of a relatively large degree of difficulty.

(Two on the issue reversal of impairment of assets
After provision for impairment of assets can not be reversed, in line with China to contain false information of financial principles, but with the new standard in universal application of the fair value of some of the conflict so that the standards system seems incongruous if the purpose of guarding against corporate fraud point of view, this requirement can still be understood, but the accounting point of view, this approach lacks a theoretical basis and practical. accounting major face does not truly reflect the condition of the assets of the problem. provision for impairment of assets purpose is to satisfy the requirements of relevant accounting information, so that the adjusted value of assets more in line with objective reality, but if the impairment is not restored back to have the provision for impairment, it does not reflect the true state of assets.

(Three large-scale effects of the information professional to determine the reliability of
Provision for impairment of assets, the key is to determine the asset's expected future economic benefits. China adopted economic criteria, as long as the asset is impaired, that is, when the asset's recoverable amount is less than book value, it is recognized, however, to reasonable confirmation of the asset's recoverable amount is greater difficulty. First, China's current asset information, the price the market is not sound, so the lack of provision for impairment of assets basis. Second, fixed assets, intangible assets accounted for, the Due to technical updates, market decline and other reasons, the value of depreciation will occur, it is far beyond the accounting recognition and measurement of professional competence required to identify more than one sector to work together, even outside the enterprise needs a professional evaluation agencies can be identified. Not only difficult, but time is often the time lag in the disclosure of accounting information.

The use of new accounting standards for impairment of assets for processing, still face many other problems, for example, provision for impairment of specific methods to be clear, the current guidelines in the approach seems reasonable, but in China it is difficult operation, expected future cash flows an asset will enable accountants struggling to cope with the content, may also form the accounting errors, so in the practical operation requires further study.

Second, the new asset impairment accounting problems Suggestions
High-quality accounting standards, the performance can provide useful information to investors, and can achieve this goal depends not only on the quality of the guidelines themselves, but also on the guidelines with the environment and adapt to the new problems of asset impairment accounting Suggestions from the following areas to explore.

(A further improve market information market and asset prices
From our current market environment, factor markets optimize the allocation of resources to play a limited role, the state-owned assets, liquidity is still a certain extent by the country's restrictions and the market development of China's current information, there is a considerable proportion of information services belonging to government departments, with the obvious administrative color, each according to its sphere of influence, to bring administrative monopoly of information, mutual blockade caused a serious waste of resources, duplication of information, coupled with the legal system and the weakening of market discipline, resulting in our country can not reach regular and timely release of the latest market value of the assets of the target. through information, market and asset price evaluation system of the perfect, all their assets at fair value and market value to determine a fair and reasonable and open to the company's total asset impairment provide rule-based, truly reflect the accounting principles of fairness, while increasing its maneuverability, fairness and objectivity.

(B improve the market mechanism and management system Links to free download http://www.hi138.com
Traditionally, China pay more attention to the reliability of accounting information, and asset impairment accounting to improve the relevance, reliability is relatively lower, but its so full of false statements of assets, engage in the bubble boom, as more reliable water removed , the real, which is consistent with the substance over form the basic accounting principles from the perspective of asset impairment accounting is also an effective way to improve the reliability of information.

Accounting control is not only regulate corporate accounting practices to ensure that accounting information is true, complete, to prevent and to detect and correct errors and fraud and so on, more importantly, for enhancing the level of the modern enterprise management, achieve business goals has an important role in the new accounting standards on the "inventories", "diminution in value of fixed assets", "diminution in value of construction in progress" and "diminution in value of intangible assets", beginning in 2007 after the provision can not be reversed, only after the disposal of related assets , then the accounting treatment.

(C development asset evaluation industry, establish a national system of professional assessment of assets
Improvement of asset evaluation system can make all their assets at fair value and market value to determine a fair and reasonable and open to the provision for asset impairment rules to follow. To develop the asset evaluation, professional evaluation to establish a national asset system, we must establish a more complete assessment of the industry laws, regulations and standards system, establish and improve the quality of asset assessment institutions practicing control system, develop a market economy and industry development requirements, a competitive asset evaluation institutions and good quality of the registered professional CPV team.

Era of knowledge economy to accelerate the upgrading of technology, knowledge updates become shorter and shorter, so that any knowledge is only temporary significance, or in the knowledge economy era of transition to a knowledge economy, access to new knowledge and new skills into personal development capital. assess intelligence-intensive industry has the characteristics which determine the asset assessment is based on people-centered, fundamental knowledge of the industry, knowledge update and change is more sensitive and more attention.

(Four full audit role
The new system of accounting standards issued and implemented, the audit work of a higher demand. CPA's audit can be said to prevent corporate accounting fraud of the last line of defense, therefore, the CPA should be cautious with due professional and professional knowledge to plan and perform the audit to obtain sufficient appropriate audit evidence to evaluate the management of the audited entity provision for impairment of assets is reasonable, the adequacy of disclosure when the CPA estimated based on audit evidence impairment of assets and the unit being audited financial statements as there are differences, differences should be to determine whether it is reasonable, if that difference is unreasonable, the CPA should be brought to the audited units adjusted by independent certified public accountants audit the use of assets minus curb corporate values ​​ready for earnings manipulation, to ensure the quality of accounting information.

(E timely disclosure of
Value of the assets involved in asset impairment accounting and asset impairment due to reduced losses, this information is concerned about the shareholders, creditors, etc. asymmetric information the shareholders of the enterprise is difficult to accurately and timely understanding of the value of the assets and their condition. To address this asymmetric information adverse effects of corporate shareholders need this information, the creditors also particularly concerned about the present status of assets, such as the present value of assets pledged goods, once the asset is impaired, will immediately affect its solvency , so that the solvency of enterprises decreased, creditor sensitive to this work. enterprise information management to fully understand the company's non-performing assets, make timely business decisions, the timely processing of benefits for the enterprise does not fully outdated, obsolete or will become obsolete some of the assets, to make continued use after the purchase or sale of other assets, decision-making. In short, asset impairment disclosure of information objects and users of financial statements are compatible, including existing and potential investors and creditors, managers, and other information users.

The users of accounting information, the general need for impairment of assets following information: the value of existing assets and the impairment of specific circumstances, impairment of assets affected by current owner's equity and profit and loss and the specific situation: an asset impairment causes, recognition and measurement basis for assets used to manage the disposal of assets for impairment attitude that information should be passed to at least meet the mandatory disclosure requirements of the user decisions. Links to free download http: / / www.hi138.com