The goal of modern financial accounting is "decision usefulness", and the decision usefulness of accounting information based on historical cost measurement is increasingly questioned; At the same time, the economic environment faced by enterprises is full of uncertainty. The internal motivation of enterprises to avoid risks and the external power of investors to pursue useful accounting information decisions have given birth to the emergence and wide application of asset impairment accounting. Enterprises must have excellent accountants, establish a sound corporate governance structure, rely on mature capital markets, and rationally use fixed assets impairment accounting.

The Accounting System for Business Enterprises promulgated and implemented by the Ministry of Finance requires the provision for impairment of assets, most of which is the only deduction of corresponding assets, and only the provision for impairment of fixed assets is the deduction of fixed assets and accumulated depreciation. The application of fixed assets impairment accounting has had a great impact on the traditional accounting concept in China, which will lead to many new accounting problems.