1、1 中文 7720 字 本科毕业 论文 （ 设计 ） 外 文 翻 译 外文题目 Asset Impairment Accounting and Appraises :Evidence from Japan 外文出处 Appraisal Journal 外文作者 Yamanoto Takashi 原文 ： Asset Impairment Accounting and Appraisers: Evidence from Japan ABSTRACT: The asset impairment accounting system has been introduced throughout the
2、 world since the mid-1990s. Even in Japan it has been extensively introduced since 2006. This article clarifies the characteristics of companies that used asset impairment accounting and the actual conditions of appraisers involvement. The analysis shows that companies with high land-impairment rati
3、os are conspicuously likely to select an appraisers valuation. Appraisers participation in asset impairment accounting restricts directors discretionary behavior and suggests the possibility of increasing financial reports reliability. Japan experienced a sudden rise and then decline in real estate
4、prices from the late 1980s to the 1990s. As a result, companies that acquired large amounts of real estate when the prices were rising ended up suffering tremendous latent losses. Asset impairment accounting, which recently has been introduced in Japan, has exposed these losses. Today, asset impairm
5、ent accounting contributes to presentation of the stark contrast between companies that have effectively utilized their corporate real estate and those that have not. This revelation has changed company directors views of corporate real estate and has created new areas of operations for appraisers,
6、who have greatly contributed to the process of asset impairment accounting. This article presents empirical analyses of companies that have adopted asset impairment accounting and attempts to verify appraisers roles and contributions. History 2 The Financial Accounting Standards Board (FASB) release
7、d Statement of Financial Accounting Standards (SFAS) No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of, in the United States in 1995.1 The International Accounting Standards Committee released International Accounting Standards (IAS) No 36, Impai
8、rment of Assets in 1998.2 Thus, asset impairment accounting has been a global issue since the mid-1990s. 1. SFAS No. 121 was revised and replaced by SFAS No. 144, Accounting for the impairment or the Disposal of Long-Lived Assets in 2001. Also see SFAS No. 157, Fair Value Measurements. 2. In 2001, t
9、he International Accounting Standards Board (IASB) replaced the International Accounting Standards Committee as the entity establishing international accounting standards. Asset impairment accounting was born in the United States because the reliability of financial reports had deteriorated due to d
10、irectors who haphazardly and discretionarily devalued fixed assets.3 This discretionary devaluation of fixed assets affected the reliability of earnings, seriously influencing investors decisions.4 Consequently, asset impairment accounting was introduced to promote procedural accounting rules and to
11、 curb directors accounting indiscretions. 3. Linda J. Zucca and David R. Campbell, “A Closer Look at Discretionary Writedowns of Impaired Assets,” Accounting Horizons 6, no. 3 (September 1992):30-41 4. Edward J. Riedl, “An Examination of Long-Lived Asset Impairments,” The Accounting Review 79, no. 3
12、 (2004):823-852 Asset Impairment Accounting in Japan Asset impairment accounting standards have been introduced in Japan in recent years, and voluntarily applied by some companies beginning in 2004. The standards have been extensively used in Japan since 2006. When performing asset impairment accoun
13、ting in Japan, a professional appraisal5 is usually obtained, because Japanese accounting standards require an appraisal in principle for everything except unimportant real estate.6 Although an appraisal is not obtained for all real estate, the appraisers role is very important. 5. There are about 5
14、000 certified real estate appraisers in Japan. To be an appraiser requires passing the national examination and having extensive professional expertise and practical experience. 3 6. The accounting standards do not define unimportant real estate. For unimportant real estate the property tax assessme
15、nt value can be used instead of an appraisal. This property tax assessment value is 70% of the market value； see The Asset impairment Accounting Standards (Japan), Clauses 28 and 90. Municipal governments set assessment values every 3 years. This assessment information is freely available to taxpaye
16、rs. As mentioned, the main roles of appraisers in asset impairment accounting are (1) to control the discretionary behavior of company directors and (2) to provide reliable earnings information for those concerned with the relevant companies. If company directors are able to manipulate the market va
17、lue of real estate, they may decide the amount of impairment in a manner that would bias earnings information. Investors who decide to invest based on this information may suffer unexpected financial damage. The goal of real estate valuation by appraisers is to prevent such earnings-coordinating beh
18、aviors by companies and to provide investors with financial information as close to the companies real financial situations as possible. Concepts in Asset Impairment Accounting The amount of asset impairment is equal to the difference between book value and recoverable value of an asset in Japan (Fi
19、gure 1). The size of an impairment charge could have a significant impact on a business and its management. Therefore, the recoverable value of an asset must be clearly and objectively estimated in order for businesses to successfully implement an accounting system based on the impairment concept. The recoverable value should be determined by gathering relevant transaction data in the real estate market. Real estate appraisers are expected to play an important role as market experts in this process.
