| After the Ministry of Finance first issued the non-monetary assets transaction accounting standard in 1999, it has undergone twice revisions in 2001 and 2006. New non-monetary transaction standard changes greatly compared with the standards in 2001, but it is essentially identical with standard made in 1999. The new standard uses the fair value as a metering method and looks on the income in non-monetary transaction as the current period increase and decrease. All of these are identical with the international criterion in nowadays. However, many listed companies used the non-monetary assets transaction as the method of earnings management. They made profits and varnished over the finance statements in abusing relative concepts about non-monetary assets transaction standard, which brought serious negative effect to small and medium shareholders, creditors and securities markets. The internal control system of non-monetary assets transaction doesn't play its part. Therefore, it is meaningful for accounting theory and practice to implement the internal control self-assessment of non-monetary assets transaction, to find the internal control deficiencies and to improve the internal control to reach the management objectives.This paper first introduces the background and significance of the topic, and then elaborates the theories on non-monetary assets transaction and earnings management. Then the research has also chosen the qualified listed companies in Shanghai Stock Exchanges to support the positivism study. The study has demonstrated the assumption that listed companies do use the non-monetary assets transaction for earnings management. Thirdly, based on the concept of internal control self-assessment, the thesis has designed some ideas of internal control self-assessment and finally brought up some advices and suggestions to improve accounting standards and standardize internal control self-assessment of non-monetary assets transaction. |
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