Research On Debt Restructuring Of Earnings Management And Internal Control Self-Assessment

In2006, the Ministry of Finance issued new accounting standards system, compared with the2001accounting standards, the new debt restructuring standards put the gains and losses of the debt restructuring into the current profits, which improved the reliability of the financial reports of listed companies; the re-introduction of the fair value measurement marked that our accounting standards were in accord with the international accounting standards. However, many listed companies, especially ST companies used restructuring to manage earnings, fabricating false profits to whitewash financial statements, which caused significant harm to the interests of accounting information users, the internal control system of debt restructuring didn’t play an effective role. As the internal control deficiency leads to financial fraud cases, the market and supervision department gradually paid more attention to the company’s internal control system. The Ministry of Finance and other five ministries jointly issued the "enterprise internal control basic standards" and "enterprise internal control supporting guidelines" in2010, which were of great importance to establish a standardized, transparent internal control.The paper first used comparative analysis method to analysis the changes in the content of the2006debt restructuring guidelines, then validated the economic consequences and impact of earnings management brought by the changes using normative and empirical research combined method. Second, on the understanding of the concept of the internal control self assessment of debt restructuring, put forward the whole framework of internal control self assessment. Third, the debt restructuring descriptive analysis from2006to2010was conducted, and by selecting the Shanghai and Shenzhen A-share listed companies that occur debt restructuring in2010as the study samples, built a multivariate linear regression model to empirical test and drew a conclusion that there was no significant relationship between the internal control self assessment disclosure and auditing with accounting earnings quality. Finally, based on the conclusions made several suggestions on the strengthening the internal control self assessment of debt restructuring.