Research Of Earnings Management Of Overcapitalization Of Changsheng Bio-technology Co.,Ltd Research And Development Expenditure

The accounting standards related to the conditional capitalization of research and development expenditures provide conditions for the earnings management of enterprises.Biopharmaceutical companies have huge research and development expenditures,the results of research and development are highly uncertain,the R&D activity period is long,the market acceptance of uncertainty after drug registration and the risk of re-evaluation of unknown drug users,and the biomedical enterprises Financial accounting profits are unstable and there is great volatility.This industry characteristic also determines that biopharmaceutical listed companies have greater demand for earnings management.In order to curb this behavior of biomedical enterprises,promote the healthy development of the securities market,and reduce the loss of stakeholders,it is increasingly necessary to study the R&D expenditure intensity and earnings management of biomedical enterprises.This paper selects the bio-pharmaceutical listed company Changsheng Bio as the research object,based on the theoretical basis of earnings management and related literatures,briefly introduces the main business and R&D expenditure of Changsheng Bio in recent years.Using empirical identification method and model analysis method to analyze the earnings management of longevity biological research and development expenditure in biomedical enterprises,and judge whether longevity organisms have earnings management through excessive capitalization.First,the empirical identification method is divided into two dimensions.The first dimension is a comparative analysis of Liaoning Chengda organisms.The second dimension is the analysis of R&D expenditures disclosed by Changsheng Biotech’s financial statements in recent years.Identify whether the company has implementedearnings management through R&D expenditures;in addition,the model analysis method(this case mainly uses the intangible assets Jones model of Lu Jianqiao)measures the degree of management of longevity biological surplus.It also analyzes and summarizes the causes and economic consequences of longevity biological surplus management,and puts forward corresponding suggestions for the earnings management of excessive capitalization of R&D expenditures in the pharmaceutical industry and its prospects for the future.