Asset appraisal and asset revaluation are a pair of concepts that people often confuse in actual operations. Both require inventory and verification of assets, and both require revaluation of asset values, but there are obvious differences in their meanings and accounting treatments: (1) Differences in meaning
(1) The assessment entities are different.
Asset revaluation is organized and implemented by internal personnel of the enterprise according to the needs of its own business; while asset appraisal is entrusted by specialized agencies and personnel outside the enterprise. my country's current system stipulates that asset appraisal institutions refer to asset appraisal companies, accounting firms, and auditors that hold a state-owned assets appraisal certificate issued by the State-owned Assets Management Administrative Department of the People's Government of the State Council or a province, autonomous region, municipality directly under the Central Government, or city under separate state planning. Firms, financial consulting companies or temporary agencies approved by the above departments; asset appraisers are also required. They must be professional and technical workers with good political quality and business qualifications who have been trained by the state-owned assets management department at the provincial level.
(2) The evaluation objects are different.
Asset value revaluation only values ??the tangible assets (such as fixed assets, inventory, etc.) on the company's books; while asset valuation not only values ??the tangible assets on the book, but also the intangible assets owned by the company. Assets (such as trademark rights, patent rights, goodwill, etc.) and even off-book assets must be evaluated.
(3) The timing and purpose of assessment are different.
Revaluation of asset values ??is generally carried out when prices fluctuate greatly. At this time, there is a large gap between the asset's book value and its actual value. In order to ensure the authenticity of accounting information and the usefulness of decision-making, assets need to be revalued. The evaluation is generally carried out when the company's capital property rights change, such as mergers, consolidations, investments, etc. The assets are evaluated at this time. Its main purpose is to ensure that asset transaction prices are fair and reasonable. Protect the legitimate rights and interests of both parties to the transaction
(4) The factors considered in the evaluation and the valuation methods used are different.
The main factor considered in the revaluation of asset values ??is price changes. The main method used is based on the revaluation price catalog stipulated by the state. The price index method and replacement cost method are used to estimate the value of assets; in addition to price changes, asset evaluation also considers the use efficiency of the asset, the time value of money, supply and demand relations, substitute goods and other factors. The main methods used include market comparison method, replacement cost method, income present value method and liquidation price method. It can be seen from this. Asset valuation revaluation is a re-revision of the book value of assets based on certain standards by internal personnel of the company when prices fluctuate greatly. Its main purpose is to ensure that the accounts are consistent. Asset valuation occurs when the property rights of corporate assets change. The company's external professional evaluation agencies and personnel will reasonably price the company's assets after comprehensively considering a variety of factors. Their main purpose is to ensure fair management of asset transactions. Protect the legitimate rights and interests of both parties to the transaction.
(2) Differences in accounting treatment
The results of asset value revaluation and asset appraisal will lead to inconsistencies between the asset book value and the estimated value, which will result in an increase in the value of the asset. Or impairment, both Chinese accounting standards and international accounting standards do not distinguish between the treatment of these two types of value-added. According to my country's accounting standards, changes in the property rights of state-owned assets require an evaluation of the company's property; when an enterprise undergoes a joint-stock reform. Business property should be appraised. Increased asset valuation. On the one hand, it increases the value of an asset. On the other hand, as a "capital reserve", no impairment assessment has been made. The current treatment is to offset the "capital reserve". At the same time, our country stipulates in the "Measures for Asset Liquidation and Capital Verification in 1995": "Enterprises and public institutions that have been approved by the financial department at the same level to implement enterprise management must carry out asset value revaluation. That is, enterprises and public institutions that liquidate assets and capital must review their accounts. Major fixed assets whose value is significantly different from the actual value are revalued based on the price changes, the asset book value and capital reserve are adjusted, and depreciation is accrued based on the adjusted asset value.
The International Accounting Standards Board's "International Accounting Standards" No. 16 - Fixed Asset Accounting promulgated in 1988 stipulates that enterprises should revaluate the fixed assets they own and control at fair value every year or every three or five years. estimate. The revaluation appreciation portion is treated as capital reserve and recorded in the balance sheet. As for the revaluation and impairment part, it is out of caution. It will be recorded in the income statement as a current expense and stipulated at the same time. If the same asset was previously revalued as a loss and recorded as an expense, and then a revaluation increase occurs, the expense should be offset first. The excess amount will be added to the shareholders' equity; if the same asset was previously revalued as appreciation and the shareholders' equity has been increased, but a revaluation depreciation occurs later, the recorded shareholders' equity should be offset first, and the excess amount will be recorded as current expenses. . At the same time, in its "International Accounting Standards" No. 25 - Investment Accounting issued by the International Accounting Standards Board in 1986, the appreciation and depreciation of assets that occur during the investment process are the same as those in the asset revaluation process.
It can be seen from the above regulations that both my country's standard setting agencies and the International Accounting Standards Board recognize the importance of revaluing and evaluating assets, but they both The difference between the two is ignored. At the same time, my country's regulations are relatively simple, that is, both appreciation and impairment directly adjust owner's equity, but the International Accounting Standards Board adopts different treatment methods for appreciation and impairment. This provision is also deficient, that is, it violates the principle of consistency of accounting treatment. At the same time, this overly robust treatment method is also inconsistent with the objective reality of our country. In my opinion, the revaluation of asset values ??and the appreciation and depreciation of asset assessments. Although they are both generated after the revaluation of assets, their properties are completely different. The differences are mainly reflected in:
First, the revaluation of asset values ??occurs when prices fluctuate. Stay in the enterprise, so the asset appreciation and depreciation at this time is a kind of appreciation and depreciation that has not yet been realized. In essence, it is a gain or loss from holding assets} and asset valuation is generated during changes in property rights and asset transactions. ．As soon as the transaction begins, appreciation and depreciation are essentially gains or losses from operating activities
Secondly, asset revaluation focuses on the remeasurement of asset value in the future. Correct value compensation for an asset, that is, more compensation will be required for the current asset appreciation in the future, and further compensation for depreciation, so it will affect the level of future expenses, and there is no need to recognize its income and losses in the current period} And asset valuation The focus is on the issue of investment valuation in the current period. Gains and losses in current valuation should be recognized in a timely manner to provide a reasonable basis for future investment income distribution
Third, the increase and decrease in asset value revaluation The value is due to the influence of purely external factors (price changes). It has nothing to do with the rights and responsibilities of the asset operator. The gains and losses should be directly attributed to the owner of the enterprise, and the appreciation and depreciation of the asset assessment are the responsibility of the operator. The profits and losses incurred during the operation should be borne by the operator. From the above analysis, it can be seen that the above two types of value-added and depreciated should be treated differently due to their different natures and responsibility attributions. Treatment method
First of all, in terms of the principle of asset revaluation, since it is a kind of asset gain or loss that has not yet been realized, it pays attention to the compensation of the later asset value, and at the same time, the responsibility belongs to the owner. In the profit period, the gains from appreciation and losses from impairment should be adjusted to the owner's equity, that is, when an increase in asset revaluation occurs, the asset item should be debited and the capital reserve item should be credited; if it is depreciated, the opposite is true. Accounting treatment. International accounting standards should not be overly robust here, and robustness cannot be at the expense of scientific rationality.
Secondly. on the handling of asset appraisals. Since it is a kind of realized operating income and loss, the investment valuation of the current period is focused, and the responsibility belongs to the operator, so its appreciation and depreciation should be recorded in the income and loss of the current period, that is, when the asset appraisal appreciation occurs, it should be Debit non-operating expenses items. Credit asset items. However, if the amount of asset appreciation and impairment that occurs in one assessment is large, in order to balance the income in each period so that the enterprise can bear it, the appreciation and impairment can also be recorded in "deferred investment gains and losses first."
Then within a certain period of time (which can be specified as no less than 5 years or within the investment period according to custom), it can be converted into non-operating income or non-operating expenses in installments.
Since our country is in the critical stage of enterprise restructuring, mergers, mergers, investments and other phenomena among enterprises are increasing day by day, and are affected by various factors such as politics and economy. Price fluctuations also often occur. Under this situation, it is increasingly important to reasonably distinguish asset value revaluation and asset appraisal, and to conduct correct accounting treatments. It is important for maintaining the company's ability to continue operating and ensuring the scientific and scientific accounting treatment. Rationality and improving the decision-making value of accounting information will have an important impact and should attract our sufficient attention.