资产减值会计与估价：来自日本的证据【外文翻译】.doc

1、1本科毕业论文（设计）外文翻译外文题目ASSETIMPAIRMENTACCOUNTINGANDAPPRAISESEVIDENCEFROMJAPAN外文出处APPRAISALJOURNAL外文作者YAMANOTOTAKASHI原文ASSETIMPAIRMENTACCOUNTINGANDAPPRAISERSEVIDENCEFROMJAPANABSTRACTTHEASSETIMPAIRMENTACCOUNTINGSYSTEMHASBEENINTRODUCEDTHROUGHOUTTHEWORLDSINCETHEMID1990SEVENINJAPANITHASBEENEXTENSIVELYINTRODU

2、CEDSINCE2006THISARTICLECLARIFIESTHECHARACTERISTICSOFCOMPANIESTHATUSEDASSETIMPAIRMENTACCOUNTINGANDTHEACTUALCONDITIONSOFAPPRAISERSINVOLVEMENTTHEANALYSISSHOWSTHATCOMPANIESWITHHIGHLANDIMPAIRMENTRATIOSARECONSPICUOUSLYLIKELYTOSELECTANAPPRAISERSVALUATIONAPPRAISERSPARTICIPATIONINASSETIMPAIRMENTACCOUNTINGRES

3、TRICTSDIRECTORSDISCRETIONARYBEHAVIORANDSUGGESTSTHEPOSSIBILITYOFINCREASINGFINANCIALREPORTSRELIABILITYJAPANEXPERIENCEDASUDDENRISEANDTHENDECLINEINREALESTATEPRICESFROMTHELATE1980STOTHE1990SASARESULT,COMPANIESTHATACQUIREDLARGEAMOUNTSOFREALESTATEWHENTHEPRICESWERERISINGENDEDUPSUFFERINGTREMENDOUSLATENTLOSSE

4、SASSETIMPAIRMENTACCOUNTING,WHICHRECENTLYHASBEENINTRODUCEDINJAPAN,HASEXPOSEDTHESELOSSESTODAY,ASSETIMPAIRMENTACCOUNTINGCONTRIBUTESTOPRESENTATIONOFTHESTARKCONTRASTBETWEENCOMPANIESTHATHAVEEFFECTIVELYUTILIZEDTHEIRCORPORATEREALESTATEANDTHOSETHATHAVENOTTHISREVELATIONHASCHANGEDCOMPANYDIRECTORSVIEWSOFCORPORA

5、TEREALESTATEANDHASCREATEDNEWAREASOFOPERATIONSFORAPPRAISERS,WHOHAVEGREATLYCONTRIBUTEDTOTHEPROCESSOFASSETIMPAIRMENTACCOUNTINGTHISARTICLEPRESENTSEMPIRICALANALYSESOFCOMPANIESTHATHAVEADOPTEDASSETIMPAIRMENTACCOUNTINGANDATTEMPTSTOVERIFYAPPRAISERSROLESANDCONTRIBUTIONSHISTORYTHEFINANCIALACCOUNTINGSTANDARDSBO

6、ARDFASBRELEASEDSTATEMENTOFFINANCIALACCOUNTING2STANDARDSSFASNO121,ACCOUNTINGFORTHEIMPAIRMENTOFLONGLIVEDASSETSANDFORLONGLIVEDASSETSTOBEDISPOSEDOF,INTHEUNITEDSTATESIN19951THEINTERNATIONALACCOUNTINGSTANDARDSCOMMITTEERELEASEDINTERNATIONALACCOUNTINGSTANDARDSIASNO36,IMPAIRMENTOFASSETSIN19982THUS,ASSETIMPAI

7、RMENTACCOUNTINGHASBEENAGLOBALISSUESINCETHEMID1990S1SFASNO121WASREVISEDANDREPLACEDBYSFASNO144,ACCOUNTINGFORTHEIMPAIRMENTORTHEDISPOSALOFLONGLIVEDASSETSIN2001ALSOSEESFASNO157,FAIRVALUEMEASUREMENTS2IN2001,THEINTERNATIONALACCOUNTINGSTANDARDSBOARDIASBREPLACEDTHEINTERNATIONALACCOUNTINGSTANDARDSCOMMITTEEAST

8、HEENTITYESTABLISHINGINTERNATIONALACCOUNTINGSTANDARDSASSETIMPAIRMENTACCOUNTINGWASBORNINTHEUNITEDSTATESBECAUSETHERELIABILITYOFFINANCIALREPORTSHADDETERIORATEDDUETODIRECTORSWHOHAPHAZARDLYANDDISCRETIONARILYDEVALUEDFIXEDASSETS3THISDISCRETIONARYDEVALUATIONOFFIXEDASSETSAFFECTEDTHERELIABILITYOFEARNINGS,SERIO

9、USLYINFLUENCINGINVESTORSDECISIONS4CONSEQUENTLY,ASSETIMPAIRMENTACCOUNTINGWASINTRODUCEDTOPROMOTEPROCEDURALACCOUNTINGRULESANDTOCURBDIRECTORSACCOUNTINGINDISCRETIONS3LINDAJZUCCAANDDAVIDRCAMPBELL,“ACLOSERLOOKATDISCRETIONARYWRITEDOWNSOFIMPAIREDASSETS,”ACCOUNTINGHORIZONS6,NO3SEPTEMBER199230414EDWARDJRIEDL,“

10、ANEXAMINATIONOFLONGLIVEDASSETIMPAIRMENTS,”THEACCOUNTINGREVIEW79,NO32004823852ASSETIMPAIRMENTACCOUNTINGINJAPANASSETIMPAIRMENTACCOUNTINGSTANDARDSHAVEBEENINTRODUCEDINJAPANINRECENTYEARS,ANDVOLUNTARILYAPPLIEDBYSOMECOMPANIESBEGINNINGIN2004THESTANDARDSHAVEBEENEXTENSIVELYUSEDINJAPANSINCE2006WHENPERFORMINGAS

11、SETIMPAIRMENTACCOUNTINGINJAPAN,APROFESSIONALAPPRAISAL5ISUSUALLYOBTAINED,BECAUSEJAPANESEACCOUNTINGSTANDARDSREQUIREANAPPRAISALINPRINCIPLEFOREVERYTHINGEXCEPTUNIMPORTANTREALESTATE6ALTHOUGHANAPPRAISALISNOTOBTAINEDFORALLREALESTATE,THEAPPRAISERSROLEISVERYIMPORTANT5THEREAREABOUT5000CERTIFIEDREALESTATEAPPRAI

12、SERSINJAPANTOBEANAPPRAISERREQUIRESPASSINGTHENATIONALEXAMINATIONANDHAVINGEXTENSIVEPROFESSIONALEXPERTISEANDPRACTICALEXPERIENCE6THEACCOUNTINGSTANDARDSDONOTDEFINEUNIMPORTANTREALESTATEFORUNIMPORTANTREALESTATETHE3PROPERTYTAXASSESSMENTVALUECANBEUSEDINSTEADOFANAPPRAISALTHISPROPERTYTAXASSESSMENTVALUEIS70OFTH

13、EMARKETVALUESEETHEASSETIMPAIRMENTACCOUNTINGSTANDARDSJAPAN,CLAUSES28AND90MUNICIPALGOVERNMENTSSETASSESSMENTVALUESEVERY3YEARSTHISASSESSMENTINFORMATIONISFREELYAVAILABLETOTAXPAYERSASMENTIONED,THEMAINROLESOFAPPRAISERSINASSETIMPAIRMENTACCOUNTINGARE1TOCONTROLTHEDISCRETIONARYBEHAVIOROFCOMPANYDIRECTORSAND2TOP

14、ROVIDERELIABLEEARNINGSINFORMATIONFORTHOSECONCERNEDWITHTHERELEVANTCOMPANIESIFCOMPANYDIRECTORSAREABLETOMANIPULATETHEMARKETVALUEOFREALESTATE,THEYMAYDECIDETHEAMOUNTOFIMPAIRMENTINAMANNERTHATWOULDBIASEARNINGSINFORMATIONINVESTORSWHODECIDETOINVESTBASEDONTHISINFORMATIONMAYSUFFERUNEXPECTEDFINANCIALDAMAGETHEGO

15、ALOFREALESTATEVALUATIONBYAPPRAISERSISTOPREVENTSUCHEARNINGSCOORDINATINGBEHAVIORSBYCOMPANIESANDTOPROVIDEINVESTORSWITHFINANCIALINFORMATIONASCLOSETOTHECOMPANIESREALFINANCIALSITUATIONSASPOSSIBLECONCEPTSINASSETIMPAIRMENTACCOUNTINGTHEAMOUNTOFASSETIMPAIRMENTISEQUALTOTHEDIFFERENCEBETWEENBOOKVALUEANDRECOVERAB

16、LEVALUEOFANASSETINJAPANFIGURE1THESIZEOFANIMPAIRMENTCHARGECOULDHAVEASIGNIFICANTIMPACTONABUSINESSANDITSMANAGEMENTTHEREFORE,THERECOVERABLEVALUEOFANASSETMUSTBECLEARLYANDOBJECTIVELYESTIMATEDINORDERFORBUSINESSESTOSUCCESSFULLYIMPLEMENTANACCOUNTINGSYSTEMBASEDONTHEIMPAIRMENTCONCEPTTHERECOVERABLEVALUESHOULDBE

17、DETERMINEDBYGATHERINGRELEVANTTRANSACTIONDATAINTHEREALESTATEMARKETREALESTATEAPPRAISERSAREEXPECTEDTOPLAYANIMPORTANTROLEASMARKETEXPERTSINTHISPROCESS4ASSETIMPAIRMENTISTREATEDDIFFERENTLYINOTHERCOUNTRIESTHEACCOUNTINGSTANDARDSDEALINGWITHIMPAIRMENTAREGENERALLYDIVIDEDINTOTWOGROUPSTHEUNITEDSTATESFASBSTANDARDS

18、ANDTHEINTERNATIONALACCOUNTINGSTANDARDSBOARDIASBSTANDARDSINTHEUNITEDSTATES,SFASNO144STATESTHATIMPAIRMENTISACONDITIONTHATEXISTSWHENANASSETSBOOKVALUEEXCEEDSITSFAIRVALUETHISSTANDARDALSOSTATESTHATTHEAMOUNTOFIMPAIRMENTLOSSCANBERECOGNIZEDONLYWHENANASSETSBOOKVALUECANNOTBERECOVEREDANDEXCEEDSITSFAIRVALUETHEST

19、ANDARDSTATESTHATTHEAMOUNTSOFIMPAIRMENTLOSSCANBEMEASUREDASTHEDIFFERENCEBETWEENTHEBOOKVALUEANDTHEFAIRVALUEONTHEOTHERHAND,IASNO36,DEFINESIMPAIRMENTASASITUATIONINWHICHANASSETSBOOKVALUEEXCEEDSARECOVERABLEAMOUNT,WHICHISTHEHIGHEROFNETSELLINGPRICEORUSEVALUETHEREFORE,THEIASBSSTANDARDSCAPITALIZETHEDIFFERENCEB

20、ETWEENANASSETSBOOKVALUEANDRECOVERABLEAMOUNTASTHEAMOUNTOFIMPAIRMENTJAPANSSTANDARDSARECLOSERTOTHEIASBSTANDARDSTHANTOTHEFASBSTANDARDS,ANDINVOLVEAPPRAISERSINTHEEVALUATIONOFTHEABOVEMENTIONEDNETSELLINGPRICESINADDITION,NOTALLASSETSARESUBJECTTOTHEASSESSMENTOFIMPAIRMENTINJAPAN,ASSETSCAPITALIZEDASIMPAIREDARES

21、PECIFIEDDEPENDINGONTHEAMOUNTOFFUTURECASHFLOWSTHATCOMESFROMTHOSEASSETSTHEFINALAMOUNTOFIMPAIRMENTISCAPITALIZEDASANEXPENSEONAPROFITLOSSSTATEMENT,GREATLYIMPACTINGPROFITAND,5EVENTUALLY,THECOMPANYSFUTUREMANAGEMENTASDISCUSSEDSOFAR,ASSETIMPAIRMENTACCOUNTINGVARIESSLIGHTLYFROMCOUNTRYTOCOUNTRYINTERMSOFPROCEDUR

22、ESTHESEDIFFERENCESHAVECAUSEDMISUNDERSTANDINGSAMONGCOMPANIESTHATPURSUEGLOBALECONOMICACTIVITIESTOPREVENTTHESEMISUNDERSTANDINGS,OVERALLACCOUNTINGSTANDARDS,INCLUDINGTHOSEREGARDINGASSETIMPAIRMENT,ARENOWCONVERGINGONAGLOBALSCALEANDAREEXPECTEDTOBEUNIFIEDINTHENEARFUTURELITERATUREREVIEWSINCEASSETIMPAIRMENTACC

23、OUNTINGSTANDARDSHAVEBEENINTRODUCED,FEWEMPIRICALSTUDIESHAVEFOCUSEDONTHERELATIONBETWEENASSETIMPAIRMENTACCOUNTINGANDAPPRAISERSTHISSECTIONWILLREVIEWTHEEMPIRICALSTUDIESOFASSETREVALUATION,WHICHHASBEENVOLUNTARILYAPPLIEDASABUSINESSCUSTOMFORMANYYEARSINTHEUNITEDKINGDOMANDAUSTRALIAGENERALLY,THEMETHODSFORREVALU

24、INGTANGIBLEFIXEDASSETUNDERACCOUNTINGSTANDARDS,SUCHASTHOSEINTHEUNITEDKINGDOMANDAUSTRALIA,ARECLASSIFIEDACCORDINGTOWHOCONDUCTSTHEREVALUATIONWHEREABUSINESSADMINISTRATORCARRIESOUTTHEREVALUATIONITISCALLEDA“DIRECTORSVALUATION”AN“APPRAISERSVALUATION”ISAREVALUATIONBYANAPPRAISERWHOHASSPECIALQUALIFICATIONSTOCA

25、RRYOUTTHEREVALUATIONASATHIRDPARTYTHESALEPRICEOFREALESTATEISNORMALLYFORMEDONTHEBASISOFATRANSACTIONSSPECIFICCIRCUMSTANCESMOREOVER,THESALEPRICEISALSOINFLUENCEDBYTHEREALESTATESINDIVIDUALATTRIBUTESITMAYBEEXTREMELYDIFFICULTFORANORDINARYPERSONTODETERMINETHEMARKETVALUETHUS,INORDERTOEVALUATEPROPERTYMOREACCUR

26、ATELYANDEASILY,AVALUATIONBYANAPPRAISERISACCEPTEDASAPROPERVALUATIONMETHODHOWEVER,ADIRECTORSVALUATIONORANAPPRAISERSVALUATIONCANBECHOSENATTHEDIRECTORSDISCRETIONCONSEQUENTLY,THISDISCRETIONMAYAFFECTTHEVALUATIONSRELIABILITYANDDETERIORATETHEFINANCIALREPORTSQUALITYTAKINGINTOCONSIDERATIONTHEDIFFERENTTYPESOFV

27、ALUATIONS,THELITERATUREWASREVIEWEDTOANALYZEWHETHERAPPRAISERSVALUATIONSARERELIABLE,ANDWHATMOTIVESPROMPTDIRECTORSTOSELECTANAPPRAISERSVALUATIONSTUDIESFOCUSINGONTHERELIABILITYOFAPPRAISERSVALUATIONSINCLUDERESEARCHBYDIETRICH,HARRIS,ANDMULLER,7OFCOMPANIESINTHEUNITEDKINGDOM,ANDSEARCHBYBARTHANDCLINCHOFCOMPAN

28、IESINAUSTRALIA8STUDIESINAUSTRALIABYBROWN,IZAN,ANDLOH,9ANDBYCOTTERANDRICHARDSON10FOCUSONCOMPANYDIRECTORSMOTIVESINSELECTINGAPPRAISERSVALUATIONSTHEFOLLOWINGSUMMARIZES6THESESTUDIES7JRICHARDDIETRICH,MARYSHARRIS,ANDKARLAMULLER,“THERELIABILITYOFINVESTMENTPROPERTYFAIRVALUEESTIMATES,”JOURNALOFACCOUNTINGANDEC

29、ONOMICS30,NO2OCTOBER20001251588MARYEBARTHANDGREGORYCLINCH,“REVALUEDFINANCIAL,TANGIBLEANDINTANGIBLEASSETSASSOCIATIONSWITHSHAREPRICESANDNONMARKETBASEDESTIMATES,”JOURNALOFACCOUNTINGRESEARCH3619981992339PHILIPHBROWN,HYIZAN,ANDALFREDLLOH,“FIXEDASSETREVALUATIONSANDMANAGERIALINCENTIVES,”ABACUS28,NO11992365

30、710JULIECOTTERANDSCOTTARICHARDSON,“RELIABILITYOFASSETREVALUATIONSTHEIMPACTOFAPPRAISERINDEPENDENCE,”REVIEWOFACCOUNTINGSTUDIES7,NO4DECEMBER2002435457RELIABILITYOFAPPRAISERSVALUATIONSRESEARCHFOCUSINGONREVALUATIONRELIABILITYWASDONEBYDIETRICH,HARRIS,ANDMULLERTHEIRSTUDYANALYZESREVALUATIONDATAFROM1988TO199

31、6,ANDTRIESTOCLARIFYTHERELIABILITYOFAPPRAISERSVALUATIONSTHEYEXAMINETHEDIFFERENCEBETWEENPROPERTIESBOOKVALUESANDSALEPRICESWHERETHEDIFFERENCEISONLYSLIGHT,THEYASSUMETHATTHEBOOKVALUEISMORERELIABLETHANWHERETHEDIFFERENCEISLARGEBASEDONTHISANALYTICALPROCEDURE,THEYFINDTHATTHEAPPRAISERSVALUATIONSAREAMORERELIABL

32、EINDICATOROFREALVALUETHANTHEBOOKVALUETHEYALSOFINDTHATTHEVALUATIONSINCASEOFANAUDITBYTHESIXMAJORAUDITCORPORATIONSAREACCURATEEVENWHENTHEYAREDIRECTORSVALUATIONSLASTLY,THEYCONCLUDETHATTHEAPPRAISERSVALUATIONSAREMOREACCURATETHANTHEAUDITBYTHESIXMAJORAUDITCORPORATIONSWHENTHEDIRECTORSVALUATIONSAREUSEDINTHEDIE

33、TRICH,HARRIS,ANDMULLERSTUDY,THERELIABILITYOFANAPPRAISERSVALUATIONWASACCEPTED,ANDITISCERTAINTHATTHESIXMAJORAUDITCORPORATIONSAUDITSALSOCONTRIBUTEDTOSOMEEXTENTTORELIABLEPROPERTYVALUATIONSBARTHANDCLINCHANALYZETHEIMPACTOFREVALUATIONONTHESTOCKPRICESOF245COMPANIESTHATREVALUATEDASSETSFROM1991TO1995THEIRANAL

34、YSISSHOWSTHATREVALUATIONOFLANDSANDBUILDINGSSIGNIFICANTLYINFLUENCESSTOCKPRICEINASTATISTICALHYPOTHESISTESTQUALIFIEDPROFESSIONALREALESTATEAPPRAISERSWEREINVOLVEDINMANYCASES,ANDBARTHANDCLINCHVERIFYTHEDIFFERENCEBETWEENAPPRAISALSOFASSETSBYAPPRAISERSANDBYTHECOMPANYDIRECTORSTHEYHYPOTHESIZETHATAPPRAISALSMADEB

35、YAPPRAISERSMOREFAIRLYAPPRAISETHEASSETSTHANAPPRAISALSBYTHECOMPANIESOWN7DIRECTORS,ANDTHEREFORE,INVESTORSEMPHASIZETHATINFORMATIONHOWEVER,NODIFFERENCEISSEENBETWEENTHEMETHODSINFLUENCEONSTOCKPRICESELECTIONOFAPPRAISERSVALUATIONSTHEBROWN,IZAN,ANDLOHSTUDYEXAMINESWHETHERCOMPANIESTHATCHOOSEAPPRAISERSVALUATIONS

36、ANDCOMPANIESTHATCHOOSEDIRECTORSVALUATIONSDIFFERINTHEIRFINANCIALCHARACTERISTICSTHEYCONDUCTRESEARCHBASEDONREVALUATIONDATAFROM1974TO1977FOR139COMPANIESTHERESULTSOFTHEIRANALYSISSHOWTHATTHEDEBTRATIOOFTHECOMPANIESTHATCHOOSEAPPRAISERSVALUATIONSISSIGNIFICANTLYHIGHTHEREFORE,ITCANBEASSUMEDTHATTHEAPPRAISERSVAL

37、UATIONISUTILIZEDINORDERTOVALIDLYCOLLATERALIZETHEREVALUATIONTOAFINANCIALINSTITUTIONCOTTERANDRICHARDSONALSOANALYZETHEDIFFERENCEBETWEENDIRECTORSANDTHEAPPRAISERSVALUATIONSTHEIRANALYSISINCLUDESDATAFOR483COMPANIESFROMBETWEEN1981AND1999ANDUSESAPROBITMODEL11WHOSEEXPLAINVARIABLEISWHETHERORNOTANAPPRAISERWASUS

38、ED,ANDTHEEXPLANATORYVARIABLESARETHEASSETVALUE,DEBTRATIO,GOVERNANCE,ETCTHEIRRESULTSAREDIFFERENTFROMTHOSEOFBROWN,IZAN,ANDLOHANDSHOWTHATDEBTRATIOISNOTASIGNIFICANTVARIABLE,BUTCORPORATEGOVERNANCEISASIGNIFICANTVARIABLETOBEMOREPRECISE,THECOMPANIESWITHSEPARATECHIEFEXECUTIVEOFFICERSANDCHAIRMENTENDEDTOSELECTA

39、PPRAISALSBYAPPRAISERS,ANDTHECOMPANIESWHOSEMANAGEMENTWASMONITOREDBYDIRECTORSAPPEAREDTOBESYSTEMATICALLYORIENTEDTOSELECTDIRECTORSVALUATIONSITISEVIDENTTHATCOMPANIESCHOICEOFAPPRAISALBYANAPPRAISERDEPENDSONHOWTHECOMPANIESAREGOVERNED,RATHERTHANTHEIRDESIRETOBEACCOUNTABLETOBANKSITISALSOAPPARENTTHATOUTSIDEDIRE

40、CTORSPLAYANIMPORTANTROLEINTHISDECISION11THISISAREGRESSIONMODELWITHABINARYVARIABLEOF01ASANEXPLAINEDVALUABLE,JUSTLIKETHELOGITMODELTHISCANBEINTERPRETEDASABINOMIALSELECTIONMODEL,WHICHIS,AMODELTHATCHOOSESBETWEENTWOCHOICESBUTTHEPROBITMODELANDTHELOGITMODELARENOTALWAYSTHESAMETHEPROBITMODELISBASEDONACUMULATI

41、VENORMALDISTRIBUTION,ISLESSFLEXIBLE,ANCANNOTREADILYBEEXTENDEDTOMORETHANONEPREDICTORVARIABLEASSHOWN,THEREISRESEARCHEG,DIETRICH,HARRIS,ANDMULLERINDICATINGTHATAPPRAISERSVALUATIONSAREMORERELIABLETHANDIRECTORSVALUATIONSTHERESEARCHALSOAPPEARSTOINDICATETHATCORPORATEGOVERNANCEISANIMPORTANTFACTORINEMPIRICALA

42、NALYSISCOTTERANDRICHARDSONBASEDONTHEPRECEDINGSTUDIES,THENEXTSECTIONOFTHISARTICLEWILLEMPIRICALLYANALYZECOMPANIESINJAPANTHATUSEASSETIMPAIRMENTACCOUNTING8ANALYSISOFCOMPANIESTHATUSEASSETIMPAIRMENTACCOUNTINGTHISSECTIONDESCRIBESTHECHARACTERISTICSOFCOMPANIESINJAPANTHATHAVEUSEDASSETIMPAIRMENTACCOUNTINGINREC

43、ENTYEARS,ANTHEACTUALCONDITIONSOFAPPRAISERSPARTICIPATIONTHEANALYSISHASADUALPURPOSEFIRST,ITATTEMPTSTOIDENTIFYHOWCOMPANIESBEGANTOADOPTASSETIMPAIRMENTACCOUNTING,BYCOMPARINGANDANALYZINGCOMPANIESTHATUSEASSETIMPAIRMENTACCOUNTINGANDTHOSETHATDONOTSECOND,ITATTEMPTSTOIDENTIFYWHATCONTRIBUTIONSAPPRAISERSMAKETOAS

44、SETIMPAIRMENTACCOUNTINGTHESAMPLECOMPANIESINTHISRESEARCHINCLUDE568BUSINESSESCONTINUOUSLYLISTEDONTHEFIRSTSECTIONOFTHETOKYOSTOCKEXCHANGEFROM1984TO2003BASEDONTHEFINANCIALDATAINTHECOMPANIESFINANCIALREPORTS,ABOUT63,OR357COMPANIES,APPLYASSETIMPAIRMENTACCOUNTING,INCLUDINGSOMEWITHEARLYAPPLICATION,IE,2004AND2

45、005CHARACTERISTICSOFCOMPANIESUSINGASSETIMPAIRMENTACCOUNTINGCOMPANYASSETSFIRSTFINANCIALINFORMATIONABOUTCOMPANIESTHATUSEASSETIMPAIRMENTACCOUNTINGISCOLLECTEDASTABLE1SHOWS,THELARGECOMPANIESINJAPANBEGANUSINGASSETIMPAIRMENTACCOUNTINGATANEARLYSTAGEMOREOVER,ITISCONSPICUOUSTHATTHERATIOOFAMOUNTOFIMPAIRMENTTOT

46、OTALASSETSAPPLIEDIN2004ISMUCHHIGHERTHANINOTHERPERIODSITISCLEAR,THEREFORE,THATTHELARGECOMPANIESWITHLATENTLOSSESCHOSETOAPPLYASSETIMPAIRMENTACCOUNTINGATANEARLYSTAGEONTHEIROWNINITIATIVE1212ACOMMONFACTORAMONGTHE24COMPANIESAPPLYINGASSETIMPAIRMENTACCOUNTINGIN2004ISTHATTHEYARERELATIVELYLARGEWELLKNOWNCOMPANI

47、ESCHARACTERIZINGBUSINESSINJAPANTHEYHADSTRONGMOTIVATIONTOAPPEALTOINVESTORSBYSHOWINGTHATTHEYHADALREADYGOTTENRIDOFMUCHLATENTLOSSINCORPORATEREALESTATEBYAPPLYINGASSETSIMPAIRMENTACCOUNTINGEARLIER9LANDVALUENEXT,THESAMPLECOMPANIESPROCESSOFACCUMULATINGLANDISANALYZEDTHEAVERAGELANDBOOKVALUEWASFOUNDFOR1984,1989

48、,1994,1999,AND2003ACCORDINGTOTHESERESULTS,THECHANGEINAVERAGEBOOKVALUEOFLANDOWNEDBYCOMPANIESAPPLYINGASSETIMPAIRMENTACCOUNTINGIN2004DIFFERSREMARKABLYFROMOTHERGROUPSTHEIRDEGREEOFVALUEINCREASEISOVERWHELMINGCOMPAREDTOOTHERGROUPSSINCE1989FIGURE2SHOWSTHECORRELATIONBETWEENUSEOFASSETIMPAIRMENTACCOUNTINGANDCH

49、ANGEINAVERAGEBOOKVALUEOFLANDFIGURE3SHOWSANINDEXOFCOMMERCIALANDINDUSTRIALLANDPRICEINJAPANITAPPEARSTHATTHOSECOMPANIESTHATOBTAINEDLARGEAMOUNTSOFLANDDURINGTHEREALESTATEBUBBLE13SUFFEREDAHIGHDEGREEOFLATENTLOSSDURINGTHEREALESTATEBUBBLE,MANYJAPANESECOMPANIESDIDNOTSUFFICIENTLY10CONSIDERTHEECONOMICFEASIBILITYOFTHEIRBUSINESSESTHECOMPANIESLOSSESCANALSOBEBLAMEDONCOMMERCIALBANKSMANYBANKSINTENTIONALLYOVERESTIMATEDTHEVALUEOFREALESTATEFORMORTGAGEFINANCINGATTHATTIME,ANDLENTASUBSTANTIALAMOUNTOFMONEY13JAPANSLANDPRICESSURGEDDURINGTHELATTERHALFOFTHE1980S