Research On The Earnings Management Of S Coal Company

In recent years,the coal industry's economic situation has been declining,and there is a trend of earnings management.Especially for small and medium-sized enterprises,the management of the company takes the opportunity of self-interest and adopts the earnings management behavior in various aspects of production and management to adjust the profit.In this paper,a case study is used to study the earnings management of a typical S company,whose parent company is a large listed state-owned enterprise with a special earnings management motivation.This paper analyzes various earnings management behaviors and their results in production and management of S company,and gives some suggestions.The article first carries on the theory analysis,elaborated the concept,the motive and the way of earnings management,as well as the predecessor's research result,then has carried on the elaboration to the earnings management result.That is to say,because of the asymmetry of information,it will lead to the behavior of earnings management.Firstly,the paper analysis background of the coal industry.In 2015,due to coal prices continued to decline,most of the coal industry enterprises are at a loss,through the S company nearly three years of profit statement data analysis,due to decline in profits year after year and the year of the substantial loss,S companies have a strong incentive to avoid large losses.But also through the analysis of its parent company since the profit analysis,stock price analysis,S company not only to avoid loss of motivation,S,because of its parent company also has the Financing Motivation of capital market,and management is the motivation of a factor of earnings management.The worrying external environment and the enterprise's own situation make the enterprise have a strong motivation for earnings management.Then it analyzes the specific way of earnings management of S company,which is divided into accrual earnings management and real earnings management behavior.From the perspective of accrued earnings management,the Company mainly adopts the policy of changing the accounting depreciation to study its impact on the accounting surplus by calculating the depreciation amount of its influence before and after the policy change.From the perspective of real earnings management,we mainly analyze the impact of the increase in the production cost of S Company on the unit cost of S Company,and analyze the effect of reducing the discretionary expense on the accounting surplus.Finally,it analyzes the influence of multiple factors on the surplus caused by S Com pany,and analyzes the influence ratio of a series of earnings management actions on corporate profits.According to the i nfluence degree of earnings management behavior on profit,the paper analyses the earnings management mode.According to the earnings management behavior exists in the coal industry,we should not only strengthen the supervision and audit of enterprises,accounting standards and the supervision of the securities market,but also need to enhance the level of in ternal control and accounting information disclosure.We should be there may be a relatively high frequency of fixed assets depreciation policy of coal industry changes in the processing and production and sales policy changes to strengthen the concern,according to the characteristics of the coal industry to avoid the earnings management behavior which may exist.Finally,a summary and outlook are made.It is expounded that under the influence of the big situation of the coal industry and various motives,the enterprise will adjust the profit from the two aspects of accrual earnings management and real earnings management.Strict control of the conditions for enterprises to change accounting policies,the establishment of good internal control and strengthening of information disclosure are conducive to the management of enterprises and long-term development in the future.