1. Differences in asset impairment between the old and new standards 1. Changed the frequency of asset impairment testing. The original standards require that enterprises should conduct impairment tests on various assets regularly or at least at the end of each year; the new standards stipulate that enterprises only need to conduct impairment tests on assets when there are signs that the assets may be impaired. However, for goodwill formed due to business mergers and intangible assets with uncertain useful lives and intangible assets that have not yet reached a usable state, impairment testing should be conducted every year regardless of whether there are signs of impairment. 2. Clarify the estimation method of the recoverable amount of assets. The original standards stipulate that the recoverable amount of an asset is determined based on the higher of the asset's net sales price and the present value of the asset's future cash flows, where the net sales price is the balance of the asset's sales price minus disposal expenses. The original standards did not provide specific guidance and methods on how to estimate the recoverable amount of assets (including net sales price and present value of future cash flows). The new standards stipulate that the recoverable amount of an asset should be determined based on the higher of the net amount of the asset's fair value minus disposal costs and the present value of the asset's expected future cash flows. Considering that many fixed assets, intangible assets, etc. The sales price is difficult to obtain. Therefore, the sales price is changed to fair value to more reasonably determine the fair value of the asset and its estimated disposal costs. It also provides more detailed operational guidance on how to predict the future cash flow and depreciation rate of the asset. 3. The concept of asset group is introduced. The original standards require enterprises to make impairment provisions on a single asset basis and recognize corresponding impairment losses. However, in actual work, sometimes it is difficult to determine the recoverable amount of a single asset. The new standards introduce the concept of asset groups and stipulate that if it is difficult for an enterprise to estimate the recoverable amount of a single asset, it should determine the recoverable amount of the asset group based on the asset group to which the asset belongs. The new standards provide more specific provisions on how to determine asset impairment losses based on asset groups. 4. Provides for the impairment treatment of headquarters assets and goodwill. The original standards were not clear about the impairment test and treatment of corporate headquarters assets and goodwill, but the new standards clearly stipulate this. It is required that headquarters assets should be tested for impairment in conjunction with relevant asset groups or combinations of asset groups to confirm corresponding impairment losses. Goodwill should also be tested for impairment in conjunction with its related asset groups or combinations of asset groups. These related asset groups or combinations of asset groups should be those that can benefit from the synergistic effects of the business combination. 5. There are prohibitive provisions on the reversal of asset impairment losses. The original standards stipulate that if the asset impairment loss recognized in the previous period is recovered in a subsequent accounting period, the recovered amount will be reversed and included in the current profit and loss to the extent that it does not exceed the amount of the recognized impairment loss. The new standards have prohibitive provisions on comparison. Once the asset impairment loss recognized in the previous period is recognized, it cannot be reversed in subsequent accounting periods. It is worth noting that the non-reversal here is for the impairment of long-term assets. The impairment of current assets such as inventories, short-term [url=]investments[/url], accounts receivable, etc. is regulated by other standards. . The new asset impairment standards close the door for companies to manipulate profits through long-term assets, increase corporate financial transparency, prevent companies from recognizing temporary losses, and ensure the authenticity and comparability of accounting information. It can not only be consistent with the historical cost principle, but also reduce the room for profit manipulation to a certain extent, and is more in line with the requirements of high-quality accounting standards. 2. Advantages and Disadvantages of the New Asset Impairment Provision 1. It is not difficult to see from the differences between the old and new standards: the new standards have adopted a series of improvement measures against the old standards. Including introducing asset groups and headquarters assets, expanding and clarifying the scope of asset impairment, increasing the estimated future net cash flow to measure the recoverable amount, limiting the use of fair value, using unified measurement methods as much as possible, ensuring the irreversibility of asset impairment, and improving accounting Disclosure requirements and other measures strictly limit its subjective operability, embody the more prudent principle of the code, and effectively curb corporate earnings management behavior. In particular, the "Accounting Standards for Business Enterprises - No. 8 Asset Impairment Standards" boldly abandons the past practice of converging with the IASB, that is, allowing the reversal of asset impairment, and adopts the policy that only accrual and no reversal are allowed in subsequent accounting periods. This approach has appropriately blocked the channel for enterprises to use asset impairment reserves to adjust surplus, greatly reducing the adjustment function of enterprises. 2. Although the new asset impairment standards have improved and perfected the original standards to a large extent and can inhibit corporate earnings management behavior to a certain extent, the new standards are not entirely set up to prevent earnings management, so the new standards The standards are appropriately adjusted to increase the relevance and applicability of accounting information and increase the use of accounting choices and professional judgment, thereby objectively increasing the room for earnings management. For example, the new standards only provide a definition of recoverable amount. , and the sales price and disposal costs of assets are not clearly defined, and how to predict the present value of future cash flows is not fully and systematically explained; although the new standards stipulate that asset impairment provisions "once confirmed, shall not be reversed", However, companies can still lower current profits and reduce ending inventory costs by making inventory depreciation provisions, so that sales costs will be lower in future periods, thereby allowing future profits to rebound, etc. These flaws will still leave some room for corporate earnings management behavior.

3. Some suggestions for the new asset impairment standards. There are differences in the application of asset impairment accounting in different companies. First, it is affected by the professional quality of the company's internal accounting personnel. Second, due to imperfect external market mechanisms and opaque price information. This makes the provision of corporate asset impairment losses lack an objective data basis. 1. Enhance the operability of the system. The new standards provide accountants with greater accounting policy options and professional judgment scope for the provision of corporate asset impairment losses. If an enterprise cannot correctly use the accounting policy options conferred by the standards, the determination of fair value, division of asset groups, determination of discount rates, etc. analyzed above will become a means for enterprises to manipulate profits and whitewash accounting statements. We should learn from international accounting standards and combine them with my country's actual situation to further improve asset impairment accounting standards. On the basis of the new standards, some operable guiding standards are given to guide the accounting practices of enterprises and narrow the scope of artificial estimation and judgment by accountants as much as possible to prevent the flexibility of policies from becoming a tool for corporate earnings management. 2. The sound development of information market and price market is an important condition for implementing asset impairment accounting. At present, my country's information market and price market are not complete and transparent enough. It is difficult for enterprises, intermediary service institutions or [url=]securities[/url] governance institutions to obtain reasonable market prices for the company's various investments and inventories, resulting in asset reductions. It is difficult to reasonably determine the degree of asset impairment, which makes the provision of asset impairment losses lack an objective data basis. Therefore, it is necessary to further improve and develop the securities market, futures market, production means market, real estate market, etc., and use modern information technology to regularly publish relevant asset prices and information. Develop the [url=]asset evaluation[/url] industry and establish a national professional asset evaluation system. Through the improvement of information, price market and asset evaluation system, the fair value and market price of various assets of the enterprise can be determined and disclosed fairly and reasonably, so that the recognition and measurement of asset impairment have a more objective basis and at the same time enhance its operability. And make accounting information more authentic. 3. Improve the overall quality of accounting personnel. The promulgation of the new standards has put forward higher requirements for the professional quality of corporate accountants. Only by continuously improving the professional quality and professional level of accountants, and continuously improving their professional judgment ability and professional ethics can the new standards be better implemented in our country. In the new standards, the division of asset groups, the determination of signs of asset impairment, the determination of discount rates and the determination of recoverable amounts all require accountants to have strong professional judgment capabilities. This not only requires accountants to have strong accounting professional knowledge, but also requires accountants to have strong comprehensive, analytical and judgment capabilities and rich corporate governance experience. Therefore, when implementing the new standards, it is necessary to strengthen business training and guidance for accounting personnel. At the same time, accounting personnel should also strive to strengthen the cultivation of their own business quality and professional ethics, and strive to improve their professional judgment capabilities. 4. Strengthen the audit of asset impairment provisions[url=][/url] In order to prevent companies from using asset impairment provisions to manipulate profits and whitewash financial statements, the audit of asset impairment provisions should be strengthened. Develop relevant independent auditing standards as soon as possible, clarify the specific audit procedures for various impairment provisions, give full play to the supervisory role of accounting firms and certified public accountants, and prevent companies from using asset impairment provisions for profit manipulation to ensure the rationality of asset impairment standards Application and reliability of accounting information. In short, with the development of social economy, it is very necessary to make provision for asset impairment. The accounting treatment methods for various impairment provisions have theoretical basis, but the difficulty in implementation cannot be ignored. We should strengthen the research on accounting theory and further improve the operability of recognizing asset impairment provisions, so that the provision of asset impairment provisions can play a greater role in regulating market behavior and improving the quality of accounting information.