| dc.description.abstract | Abstract
Taiwan’s financial accounting standard statement No. 35 stipulates the register of the company’’s assets impairment. Both public investers and those who have a stake value this communique because this register will impact company’s operation outcome. Enterprises can choose to recognize since 1994 as regulated or earlier from July 1 , 1993. That is to say, the administrative authority can determine the timing and degree of assets impairment in light of the operation characteristics of the company so as to achieve the strategies of surplus control. This text, therefore, will deal with the decisive factors affecting the level of recognizing the company’s assets impairment of public issuing companies in Taiwan. The research of the real example started with the overview of public issuing companies’ assets impairment by describing the sample and narrating statistical analysis.
The real example indicated: <1>, the number of companies’ impairment in electric industry is higher than those in the other industries no matter recognized it on time or ahead. <2>, the average amounts of impairment recognized ahead of time is higher than those recognized on time. <3>, The recognition of fixed assets and idle assets are the major parts no matter recognized on time or ahead of time. <4>, the △INDROA, PBR, △SALES, and △OCF of the companies which recognized assets impairment ahead of time are averagely higher than those of the companies which recognized assets impairment on time. Nevertheless, STR of the companies which recognized assets impairment is lower than that of the ones which recognized on time. We assumed that it is because the publics are less confident of the companies which recognized impairments ahead of time and it directly affects the STR.
Secondly, we discussed below factors that affect public issuing companies to decide to recognize assets impairment or not. <1>, the main factors of recognizing assets impairment—the economic substantial factors under △INDROA, and PBR present this positive relation. <2 > , the main elements of the recognizing assets impairment level: Under economic substantial elements, STR and △OCF have a negative relation, while △SALES and have a positive relation; under the inducement of administrative authority, it has a positive relation with △MGT.
Finally, the following factors mainly affect public issuing companies to recognize assets impairment ahead of time. (versus the ones which did it on time. )Under economic substantial elements, △INDROA, PBR, and △SALES have a positive relation. In the appendix, we used virtual variables to explain the difference of the variables of the assets impairment level in 2004 and 2005. The result of the real example showed that the impact of the assets impairment level of △OCF in 2005 was apparently higher than that of △OCF in 2004; the influence of △MGT in 2004 on assets impairment is obviously higher than that of △MGT in 2005. | en_US |