Discussion on asset depreciation reserves and suggestion to improve

Ministry of Finance issued formally the China Accounting System for Business Enterprise on December 29,2000.This system regulates the definition of asset,and extends asset depreciation from four items to eight items,standardizes the withdrawal of asset depreciation reserves.This reformation measure improves the enterprise's accounting information quality,further carries out the prudence principle.But,there are many problems in the course of processing asset depreciation,such as,lack of correlative data,difficult to make clear the net realizable value of stocked goods and so on.Therefore,our country should consult correlative asset depreciation content of International Accounting Standards,set down our country's asset depreciation standard in time.