Study On Earnings Management Of Company A's Non-Recurring Profit And Loss

ST system is a unique system in China,that is,the stock exchange on the existence of financial anomalies or other unusual conditions of listed companies issued by the special logo.In order to avoid Brexit and attract more investors,the management will choose to manipulate profits by artificially increasing the amount of items when the main business is underperforming.Non-recurring profit and loss is the company's infrequent income and losses,can not really reflect the intrinsic value of the enterprise,can not be effectively supervised.Therefore,listed companies often choose non-recurring profit and loss to carry out earnings management.If the proportion of non-recurring profit and loss to the net profit of enterprises is too large,it will lead to the distortion of the company's financial information and harm the interests of investors.Although China through a series of means to curb the earnings management behavior of listed companies,but due to the imperfect standards and supervision,the use of non-recurring profit and loss of earnings management cases not only did not decrease,but also increased.This paper first collates the relevant literatures at home and abroad,introduces the related concepts of non-recurring profit and loss and earnings management in theory,and sums up the motivation and means for listed companies to implement earnings management by using non-recurring profit and loss.Based on the relevant theoretical analysis,select A Company to carry out case studies.Through the analysis of company A's financial data,it is concluded that company A uses non-recurring profit and loss to carry out earnings management.Then,starting with the concrete means of implementing earnings management in A City Company,this paper analyzes the motivation and consequences,and proves that the earnings management of company A's non-recurring profit and loss can only make the report turn A profit in A moment,and can not change the situation of the company's difficult operation.Finally,from the point of view of corporate governance,securities market supervision,enterprise Accounting standards and audit supervision,this paper synthesizes theproblems reflected in the management of non-recurrent profit and loss earnings of company A,and puts forward some governance suggestions for ST Company's non-recurring profit and loss earnings management,hoping to promote the healthy and orderly development of China's securities market.