Research On Earnings Management Issues In Accounting Treatment Of R&D Expenditures Of H Pharmaceutical

With the development of The Times,the increasingly fierce market competition,research and development innovation has become the only way for enterprises to become bigger and stronger.Meanwhile,our country in 2006 promulgated new intangible assets standards,the accounting requirements for the accounting treatment of research and development expenditure changed from the original completely expensed to conditional capitalization,the new standard this practice is to encourage enterprises to actively invest in research and development.However,this principle-oriented criterion also gives enterprises space to use R&D expenditure to conduct earnings management.Some scientific and innovative enterprises,especially the pharmaceutical manufacturing industry,have strong earnings management motivation.Although earnings management can make the current financial statements beautiful,it will also affect the future development of enterprises and easily mislead investors to make wrong decisions.Not conducive to the healthy development of the capital market.Therefore,it is of great theoretical and practical significance to study earnings management in the accounting treatment of enterprise R&D expenditure.This paper combines theory and case study,theoretically,through the review of domestic and foreign literature,this paper analyzes the advantages and disadvantages of different R&D expenditure accounting treatment methods and the relationship between R&D expenditure and earnings management;From the perspective of the case,this paper chooses H Pharmaceutical industry as the research object,and firstly introduces the background of the pharmaceutical manufacturing industry and the case enterprise.Secondly,using the method of earnings management experience identification,this paper firstly makes a comparative analysis of H pharmaceutical’s R&D expenditure in aspect and aspect,and then identifies the loopholes in the accounting treatment of H Pharmaceutical’s R&D expenditure and various problems in the information disclosure in combination with the inquiry of H Pharmaceutical’s R&D expenditure repeatedly by Shanghai Stock Exchange,R&D expenditure information disclosure and financial "taking a big bath",and draws a conclusion: The capitalized ratio of R&D expenditure of H Pharmaceutical industry has obvious earnings management behavior due to artificial adjustment.Then,based on the "fraud triangle theory",the causes of earnings management of enterprises are analyzed,including pressure,opportunity and excuse,and the impact of earnings management behavior is analyzed,such as: It can increase the pressure of future performance,reduce the quality of accounting information and damage the interests of external investors,and other adverse effects.After the study of this paper,it is found that the negative impact of earnings management behavior is far greater than its positive impact.Therefore,the earnings management behavior needs to be treated accordingly.Finally,in combination with the problems revealed by H Pharmaceutical,this paper first puts forward the author’s personal views and opinions on this issue from the theoretical level,and then puts forward corresponding countermeasures and suggestions from the level of relevant accounting standards,corporate internal governance and external system,which can help reduce the possibility of enterprises using R&D expenditure for earnings management and protect the interests of investors.We will maintain the sound development of the capital market.