Research On Earnings Management Based On The Change Of Accounting Estimation Of Fixed Assets Depreciation

Listed companies often in order to meet the needs of their own interests,and choose to use a variety of means to carry out earnings management,accounting estimates change is one of its common methods.The change of accounting estimation has strong subjectivity,and the accounting information is asymmetric in some report users,and the external information users can not make a clear judgment on the rationality of the change of corporate accounting estimation.Therefore,the change of accounting estimation becomes the perfect choice for enterprises to adjust profits and whitewash the report.In addition,the steel industry has long been in a state of depression,the overall situation is subdued.Gansu Jiu Steel Group Hongxing Iron and Steel Co.,Ltd.(hereinafter referred to as Hongxing Iron) in its own business problems,choose to use extended fixed assets depreciation period for accounting estimation changes,adjust profits.This paper analyzes the behavior of the earnings management of Hongxing Iron using accounting estimation change by case analysis,and finds that the wine steel hongxing increases the net profit of the current period by prolonging the depreciation years of fixed assets in 2010 years and 2014,and achieves the purpose of earnings management,so as to avoid being specially treated.This article mainly from three aspects of Hongxing Iron case analysis,first of all,from the overall introduction of the steel industry's large environment,the company's specific situation,including the situation of fixed assets to elaborate.A detailed description of how Hongxing Iron was made in 2010 and 2014 is a change in accounting estimates.Then,from its motivation of accounting estimation change in 2010 and 2014,the rationality of the change and the change of stock price after the change,the main financial index and the profit contribution rate brought by depreciation are analyzed,and the overall accrued profit is used to test and analyze whether there is earnings management behavior in Hongxing Iron.Finally,from the case to get some enlightenment,and put forward some suggestions.Improve the disclosure of accounting estimates changes,enhance the professional knowledge and professional judgment of accountants,and increase the supervision of external institutions.The results show that there is norationality in the change of accounting estimation two times,and the change accounting estimation is likely to be the behavior of earnings management.