Depreciation and impairment of fixed assets related problems of
|School||Shanghai Maritime University|
|Keywords||Depreciation of fixed assets Impairment of fixed assets Guidelines for building Standards perfect|
Fixed assets as a non-cash nature of the fixed costs, reasonable provision for the size of the amount of depreciation and impairment directly affect revenue, risk and cash flow, thus financing the enterprise, investment, distribution, market value, as well as enterprises the overall market competitiveness will have a direct or indirect impact on a reasonable deal with the issues related to the impairment of fixed assets and depreciation, the operation of the business relationship is very significant. In theoretical circles, there is lack of understanding the relationship between depreciation and impairment of fixed assets. Fixed asset impairment loss on the recognition and measurement of too much reliance on the depreciation accounting theory, resulting in the depreciation of fixed assets accounting theory plight caught in a dilemma. For example, in 1954, the U.S. Internal Revenue Code (Internal Revenue Code) allows enterprises to adopt the sum method, declining balance method, accelerated depreciation depreciated perceived technological progress due to accelerated depreciation has been considered functionally obsolete; another kinds of view, the estimated depreciable life itself already contains not make full use of obsolete and other factors. The same time, the practitioners, the provision for depreciation and impairment of fixed assets, the related specifications of the Accounting Standards for Business Enterprises and Chinese enterprises in specific accounting procedure far away, the dialectical relationship awareness of people on fixed assets Accumulated depreciation and impairment not enough. For example, most of the assets for impairment is only a reduction of the corresponding assets, only the impairment of fixed assets and accumulated depreciation as a reduction of fixed assets exist, in practice, people tend to think depreciated One way to take in order to avoid impairment of fixed assets, thus fixed assets impairment allowances will be duplicated. Depreciation and impairment of fixed assets related provisions in order to better implement the new accounting standards, straighten out the accumulated depreciation of fixed assets for impairment both dialectical relationship, and differences in accounting practices Accounting Standards give analysis, research provision for the impairment of fixed assets, etc., are very necessary. For the above reasons, the paper from clear research problem, the purpose of the study and its theoretical basis and methods proceed further clarify the results of previous studies with inadequate literature review, in-depth analysis of asset measurement theory, the theory of asset depreciation and asset impairment theory on the basis of the impact of the depreciation of fixed assets and impairment factors and economic consequences, to clarify the asset depreciation accounting to the impairment accounting logic inheritance relationship, from accounting and theoretical study of the two perspectives of depreciation of fixed assets with the dialectical relationship between the impairment of both of our new corporate accounting standards promulgated regulations on asset depreciation and impairment comparative analysis, to learn from the practice of the correlation international accounting standards, the Construction of the \accounting standards - the depreciation of fixed assets is envisaged that the proposed recommendations Improving China Accounting Standards for Business Enterprises No. 8 - Impairment of Assets \The purpose of this study is to in-depth analysis on the basis of the depreciation of fixed assets and impairment theory, straighten out relations and substantial connection between the two, accounting information to improve the decision-making related to adapt to the objective requirements of the new economic era, with international Depreciation of fixed assets accounting standards convergence, combined with China's specific national conditions, improve and amend our new corporate accounting standards relevant provisions of the impairment of fixed assets, to build a new practical guide accounting professionals from professional judgment \perspective on depreciation accounting and impairment accounting system.