On Capitalization Of R&D Expenditures And Earnings Management In Manufacturing Enterprises

Scientific and technological innovation is a necessary guarantee for improving social productivity and a strategic support for increasing China’s comprehensive national strength.How to cause minimal harm to the environment while vigorously developing innovation is a question that major companies need to consider.The rise of new energy vehicles has led to the vigorous development of green new material technologies,and battery packs as new energy power systems have gradually become research hotspots.New technologies,such as lithium batteries,nickel-metal hydride batteries,and battery positive and negative electrodes,are constantly emerging,and the core technologies have been successfully developed and industrialized again and again,and have broad prospects for development.In order to enhance their own competitiveness,new energy companies have increased their R&D expenditures rapidly while their performance has increased,and their R&D results have been remarkable.However,the spontaneous combustion of new energy vehicles has occurred frequently in the past two years,and the state ’s subsidies for new energy vehicles have shrunk sharply.As a result,the public ’s enthusiasm for purchasing new energy vehicles has plummeted.Some car companies still cannot maintain profits with government subsidies.New energy The effectiveness of the business has fallen to the bottom.At this time,some companies carry out earnings management for the sake of their own interests.To a large extent,capitalize R&D expenditures and whitewash financial statements.Therefore,various difficulties in handling R&D expenditures follow.How to properly divide the research and development stages,There is great uncertainty in whether an enterprise can consciously and correctly implement the policy requirements of accounting standards.Many empirical studies have shown that earnings management in the manufacturing industry is widespread,and the vague definition of accounting standards has also given companies space for earnings management.Earnings management using the R&D expenditure accounting method is one of the commonly used earnings methods by major companies.Due to the frequent occurrence of spontaneous combustion of new energy vehicles in the past two years,the enthusiasm for the purchase of new energy vehicles has also plummeted.Many car companies are still unable to maintain profitability by government subsidies.China’s subsidies for new energy vehicles have also been reduced.New energy vehicles Benefits fell to the bottom.This paper selects the listed enterprise that produces new energy power system in the electrical machinery and equipment manufacturing industry--Corun as the research object,in order to help the investors understand the manufacturing industry by analyzing the research and development expenditure process and capitalization division of Corun.Means and methods of identification that may be used in earnings management.Corun was originally a company specializing in the production of foamed nickel and civilian batteries.Its founder has decided to transform the hybrid system for the production of automobiles since 2012.This transformation will also bring Keli into the net profit for eight consecutive years.Negative and profitable decline.Through the analysis of Corun’s 2012~2018 financial statements and other data,it is found that it manages earnings through the capitalization of R&D expenditures,is in the debt contract and avoids the motive of delisting,and Keli is far from obscuring the capitalization of R&D expenditures.Point,the amount of a large amount of research and development expenditures is capitalized into development expenditures.In 2012~2017,the net profit of Corun has been negative for one year and one year,avoiding the situation of ST,and 2017 and 2018 The annual capitalization rate is as high as 90% and only achieves a small profit,especially in the performance.However,under the premise of beautifying the current net profit,it does not excessively distort the earnings information and has a negative impact on investors,so it is a moderate earnings management behavior.Through the analysis of Corun’s earnings management,and analyzing the shortcomings in the standard of R&D expenditure,what can be done by accounting standards makers to avoid the current situation of China’s enterprises using R&D expenditure accounting to manage earnings,and maintain good Market Order.The purpose of this study is to enrich the case of using the definition of R&D expenditure capitalization to manage earnings in the electrical machinery and equipment industry,and to help investors effectively identify the motives and means of management use of R&D expenditure earnings management in manufacturing.The highlight of this paper is to open up a new chapter in the earnings management of manufacturing R&D expenditures,and analyze Corun from multiple perspectives.The shortcomings of this paper are also obvious.The relevant models are not used to measure the degree of Keli’s long-term earnings management,and the relevant industries are relatively confidential in research and development.The range of data collected is not comprehensive enough.It is hoped that the shortcomings will be improved in future research.