Research On The Impairment Of Biological Assets From The Perspective Of Earnings Management ——Based On The Analysis Of Zhangzi Island Series Events

For agricultural,forestry,fishery,and animal husbandry enterprises,the core to ensure the normal operation of the enterprise is biological assets.They need not only the cultivation of enterprises,but also the important business objects of enterprises.However,unlike other assets,biological assets have huge risks due to their particular characteristics,the risk factors such as natural disasters,they belong to force majeure,it is inevitable to make the issue of biological assets impairment become a difficult problem.As for enterprises,it is naturally convenient to use biological assets impairment for earnings management,which is a common phenomenon.Therefore,it is of great significance for agricultural enterprises in the aspect of resource optimization to attach importance to and standardize all aspects of biological assets impairment:confirmation,measurement and disclosure.If this issue is not taken seriously,it will affect the healthy and sustainable development of the capital market.In 2014,2018 and 2019,Zhangzidao Group announced several huge biological assets-scallop impairment events,which made the capital market in an uproar.Then it makes both the capital market and the public pay close attention to the impairment of agricultural company’s biological assets.Starting from this trending,the paper studies the impairment of biological assets from the perspective of earnings management.First of all,it analyzes the convenience of using biological assets for earnings management:because of the natural characteristics of biological assets,it is more convenient for enterprises with biological assets to adjust their earnings,and China’s biological assets accounting standards provide a certain space,in addition,the convenience of external supervision of biological assets has not played a good role,and there are problems of insufficient awareness and ability of supervision question;Secondly,it analyzes the motivation of using biological assets impairment to carry out earnings management in Zhangzidao Group from the four aspects of concealing the financial motivation of enterprises,tax avoidance,obtaining a large number of government subsidies and canceling the delisting risk warning.Thirdly,it analyzes the three aspects of recognition,measurement and disclosure The whole process of several times of huge impairment of biological assets in Zhangzidao Group is analyzed and the problems are identified:（1）there are often loopholes in the daily monitoring measures of biological assets,and the confirmation method and basis are not convincing.（2）The cost of initial measurement is mainly composed of doubtful items,and there is a large operating space for turning back the surplus in the later period of impairment of consumptive biological assets.（3）The group has some problems in the disclosure of biological assets,such as less disclosure information,less detailed information,timeliness,and low quality of disclosure information.Then it analyzes the effect of Zhangzidao Group’s using biological assets impairment for earnings management;At last,I put forward my own thoughts on the impairment of biological assets,and recognize the adverse effects of using the impairment of biological assets for earnings management,and then sort out the logic of the investigation of scallop events in Zhangzidao Group by Shenzhen Stock Exchange,and put forward a new thought that the detailed information of the impairment of biological assets is supplemented and disclosed in the notes.After the detailed analysis of three scallop impairment events in Zhangzidao Group,Finally,it is suggested that accounting standards,internal governance,auditing method and market supervision work together to form a regulatory closed-loop.