A Discussion on Capital Asset Devalue Preparation

This paper deals with the changes about the range of assets, reversal range of assets, the base of calculation, portfolio calculation in the accounting standards, which form the unique policy of assets impairment, and it is more exercisable. The new policy regulates the range of assets to prevent enterprises especially the stated-company from controlling profit. Although it can not block up the manipulation by means of assets impairment of floating assets, the wide application of Fair Value will make it harder to manipulate the profit by company.