Research On Earnings Management Under The Fair Value Of A

The reintroduction of Fair value of listed companies in our country in2007,provided by earnings management of listed companies with larger space, the means ofearnings management is also more diverse. Because fair value directly affect the profitand loss, the profits of listed companies have greater maneuverability, using fair valueto earnings management of the company generally show the profit volatility, givendirectly affect the relationship between fair value and profit, this paper selects thelisted company surplus management project to build the evaluation index system ofthe income statement. Through the non-recurring profit and loss accounts for theproportion of total profit, net cash difference rate, surplus cash to cover the threeindicators analysis, found in2008-2012, A company surplus volatile, poor earningsquality, preliminary detection of possible use of the fair value of A company for themotivation of earnings management. Based on A company’s net non-operating incomeaccounted for the proportion of net profit, profit and loss accounts for the proportionof net profit on the changes in the fair value, asset impairment losses accounted forthe proportion of net income, other comprehensive income accounted for theproportion of the total amount of comprehensive income of this A few indicatorsanalysis, found that there is A company use net non-operating income, assetimpairment loss of earnings management motivation, but as A company fornon-financial enterprises, using the tendency of changes in fair value gains and losseson earnings management is not obvious. Aiming at the existing problem of earningsmanagement in A company, this paper argues that the company should perfect thecorporate governance structure, strengthen the fair value disclosure. At the same time,in order to can better use of the fair value of listed companies to carry on the earningsmanagement, also need to related departments to further improve accountingstandards and strengthen the supervision of intermediary business.