R&D Expenditure And Earnings Management Of Software Development Enterprises

The new accounting standards promulgated in 2006 changed the accounting treatment of R&D expenditure from full expenditure to conditional capitalization.The new guidelines are conducive to stimulating enterprises'enthusiasm for innovation and encouraging enterprises to actively research and develop.However,on the one hand,due to the imperfection of the relevant standards,the specific disclosure provisions on R&D expenditure are not detailed enough;on the other hand,the specific implementation of this policy requires mature professional judgment and professional standards,so enterprises use R&D expenditure accounting processing to conduct earnings management more and more frequently.Therefore,it is of practical significance to study the earnings management of enterprises using R&D expenditure.This paper adopts the research method of combining theory with case.In the theoretical part,based on the research literature at home and abroad,this paper analyzed the earnings management behavior of enterprises using different accounting methods of R&D expenditure,as well as the motivation and methods of enterprises using this way of earnings management.In the case part,this paper studies the accounting treatment and existing problems of the R&D investment of HKUST,combines with its earnings management motivation,draws the conclusion that HKUST has earnings management through R&D expenditure,and reveals the existence of earnings management by accounting treatment of R&D expenditure of Listed Companies in China.Finally,this paper draws a conclusion that the existence of HKUST Into is based on different motivations to use R&D expenditure accounting treatment for earnings management.In view of the problems found,the suggestions given in this paper are as follows:the company should divide the research and development stages according to clear standards;the system should improve the accounting standards of R&D expenditure to restrain the phenomenon of earnings management of listed companies;the audit system should be improved;and the state should also strengthen the supervision and punishment of earnings management of listed companies.