Research On Enterprise Earnings Management Based On Deferred Income Tax

Storm Group has created the myth of the daily limit of my country's stock market with 35 consecutive daily limit of big bull stocks.However,in the following two years,its stock price unexpectedly formed a parabolic trend,and its market value once evaporated by 90.53%.Executives reduced their holdings and quietly withdrew from the market in 2020.At the same time,the financial report of Baofeng Group also showed the clues of earnings management.Negative income tax expenses,large deferred income tax assets,and successive years of losses in minority shareholders' gains and losses all show that Baofeng Group in the storm may face many financial affairs.problem.The Le TV case uses deferred income tax assets and minority shareholders' gains and losses for earnings management as financial reporting methods that we still remember,and there are still many issues worthy of studying with more cases.This article selects the method of case study,takes the typical enterprise-Baofeng Group as a case,and conducts in-depth research in combination with the current domestic and foreign literature.First,analyze the origin of the business dilemma of Storm Group's business operation model.Secondly,explore its purpose from the motivation level of Storm Group's earnings management.Thirdly,explain the path of large-amount provisioning of its deferred income tax assets.Finally,From the financial statements and financial indicators to prove the fact that Baofeng Group uses earnings management to manipulate the company's performance.Through the above-mentioned case analysis path,provide corresponding constructive suggestions on common problems of enterprises discovered in the process and institutional boundaries that have not yet been perfected.This article reveals Baofeng Group's earnings management behavior and provides certain ideas for future corporate governance.At the same time,it is hoped that this case study can enrich cases in related fields and provide different research ideas for more valuable research in the future.