Research On Earnings Management Issues Of COFCO Real Estate Company

Since the Open and Reform,the corporate system and the shareholding system in China has advanced a further development and that made accounting become even increasingly important in real practice.The capital market access system changes as the progress of the economic reformation and development.Though the accounting principles and information disclosure system have been established with the need of economy development,still there might be some gaps existed in field operation.Therefore,the significance of studying accounting and auditing as the main substances of market economy is unprecedently greater.This article chose some companies in the real estate industry as it is representative in the market economy to analyze,aiming at an essential part in auditing and accounting to studying their earnings management behaviors and get an insight of the whole industry.This paper adopts the method of case study to analyze the earnings in FY2016 of company A,and we found out that the company A used the strategy of earnings management.The paper is consisted of five sections.Section one is introduction.It mainly introduces the background and significance of this study,illustrating the aim of this paper and its practical meaning.Followed is the explanation of the imperfections of innovation in this study and the main methodology used in this paper,laying the foundation for the analysis at the end.The study aims at practical earnings management.Section two is Literature review.The literature in China and abroad was reviewed and summarized to provide a basis for future research.Section three is theory.This part at first introduces that the earnings management is an efficient market theory,an information asymmetry theory and a rational economic theory.This part also explains the theory and concept of text design in the process of study,giving a further illustration towards the earnings management and its metric theory.Section four is case study.The section uses the company A as an example,introducing at first the basic background and the state of operation of this company;then it analyzes the actual statistic of reserve stock depreciation,and the concluding at the end.Section five is based on the company in the above analysis of asset impairment,the fair value,the deadline and the cost in terms of earnings management based on the analysis,find out problem of the source,and analyzed.Section six is countermeasure and recommendation.It provides some practical and executable advices towards the shortcomings and weaknesses found in the study of our country policies and accounting standards.Section seven is conclusion and expectation.This part concludes the research and analysis in this paper,and it sees the prospects of the future of this industry.There are references at the end.