The Research On Assets Impairment And Earnings Management In Listed Companies

With the progresses of our society and the continuous development of science and technology, the economic environment that the companies face is more uncertain. A listed company in a loss situation will be punished correspondingly according to law. so these companies implement earnings management or profit manipulation with many means. From the annual reports of listed company in recent years, the accounting policy of assets impairment has become a tool that listed companies use to make earnings management, and it has become one of the usual meanings. Assets impairment becomes one of the hot accounting problems around the world accordingly.Our accounting standard about assets impairment is imperfect until now. In order to improve our asset impairment policy, we allow listed companies Provision assets impairment in accordance with the fact and reduce the use of assets for impairment earnings management practices as far as possible. It's necessary to investigate the act of earning management from assets impairment. In the view of current research situation, the domestic researches on study of assets impairment aren't much. Most researches were studying on the old accounting standard, not very perfect no matter in the theoretical research or in the process of operation. Through the combination of normative and empirical methodologies, this thesis makes research on the assets impairment of Chinese listed company, which is aimed to give certain proofs and countermeasures to the perfect of asset impairment policies, the standardization of accounting rules of asset impairment and the elevation of the information quality of the securities business, so that we can provide some suggestions for revising the accounting standard of assets impairment.This article reads as follows:Firstly, the text elaborates related theory about the preparations of assets impairment and earnings management. It introduces briefly the definition in the existing accounting standards, the basic theory. Secondly, it introduces the meaning and features of earnings management and analysts comprehensively the premise and motivation of earnings management. It also analysts performance of Chinese listed companies surplus management using assets impairment and its cause.Then it decrypts fatherly the relationship between assets impairment and earnings management. First of all, it introduces some general surplus management tools used by listed companies. Then it elaborates the relationship between assets impairment and earnings management. It analysts the status of Surplus management with assets impairment through specific examples and changes of the assets impairment criteria and its impact on earnings management. It also analysts in particular the impact on earnings management by existing assets impairment guidelines. The new guidelines about assets impairment is imperfect, how corporate make profit manipulation with assets impairment. This section analysts the existing criteria of assets impairment and its impact on listed companies with specific cases, so that we can provide reference for standardize surplus management fatherly.Finally, it proposes some specific recommendations to profits manipulation excessive earnings management. The author gets some conclusions through analyzing earlier context. We should make some progress mainly from institution-building regulations and strengthening supervision. It proposes that we should perfect the Company Law and Securities Law, thereby eliminate negative impact on regulatory policies from the choice of accounting policies. Next we should strengthen the supervision of securities regulatory departments and perfect assets impairment accounting standards, accounting systems. We should establish a set of high-quality accounting standards and reform the existing guidelines formulation procedures. At the same time, we must strengthen the accounting and business ethics Norms and the professional ethics education to accounting staff fatherly. In particular, we should look for how to improve the details of existing asset impairment guidelines, because companies are likely to manipulate profit with these details. Secondly, we must also strengthen the supervision of the securities regulatory departments and improve the quality of the audit of Certified Public Accountants. A certified public accountant should plan and perform the audit work with due professional care. We should improve the certified public accountants professional quality and ethics quality. At the same time, we also improve company internal control. The corporate governance mechanism is the carrier of accounting regulation, and we should sound the corporate governance structure, so that format the restraint corporate governance structure system curbing excessive surplus management. We must improve the independence of internal audit. Finally, accountants should strengthen their accounting quality education, and continuously operations quality and professional judgment, in order to avoid misusing assets impairment because of incorrect professional understanding. So that the author can make some suggestions for minimizing compressed space of excessive surplus management.