Study On The Assets Impairment And Earning Management

In order to solve the problem of earning management in Listed Companies, the Ministry of Finance issued "Enterprise Accountants Criterion8th-assets impairment" and some others which are connected about accounting standards On February 15,2006. These standards first carry out within listed companies on January 1,2007, and encourage other companies to implement also.The new standards made more detailed provisions in affirmation, measurement, record and the disclosure and have a great influence on earning management in Listed Companies.In this article, firstly described the concepts, theoretical studies of the assets impairment and earning management, then analyzed the relationship between the two. Secondly discussed the changes of the standards, from the comparison between the new and old assets impairment standards we found that on one hand it's really have a active influence in control the earning management by add more detailed provisions in assets impairment standards, but on the other hand because there are still some problems such as asset group and recoverable amount, so it's still leaving more room for earnings management in practice.Based on the theoretical research we try to found some new effective methods to control the earning management by analyzed the primary causes from internal and external of the Listed Companies that the act existed.To solve these problems we provide some suggestions to regulate the earnings management in Listed Companies and improve the assets impairment standards, hope to improve the relevance of accounting information and make it more useful to decision-making.