Yanzhou Coal Utilization Of Special Reserve Policy For Earnings Management

With the gradual improvement of China’s economic development level,the issue of corporate earnings management has gradually entered the public’s view.On the one hand,a certain degree of earnings management of the company has a positive effect on the company’s long-term development.On the other hand,excessive earnings management behavior will reduce the quality of corporate earnings information and will have a negative effect on the authenticity of corporate accounting information.It will not be convenient for users of financial reports to make economic decisions,but it will also affect the sound development of the market economy.The special reserve is used to account for the costs of safe production costs and maintenance fees that are extracted from various high-risk industries and have similar nature.Because this account is relatively special,it is often used by companies.This paper combines special reserve with earnings management,and comprehensive literature review method,case analysis method and comparative analysis method.First of all,through the search for enumeration of previous studies on related theories;followed by theory as a starting point,selected companies with representative earnings management,and Yanzhou Coal Company as a case.Since the earnings per share received by Yanzhou Coal in the 2015 semi-annual report was RMB 0.1,but in the context of declining coal prices,the earnings per share of RMB0.13 were realized in the third quarter,although the company’s external explanation was due to the reduction.The reason for the cost,but people believe that this is due to the use of special reserves.Again,this article contacted relevant data of Yanzhou Coal Industry Corporation from 2012 to 2016.It focused on the management status of special reserves and related comparative analysis of Yanzhou Coal,analyzed the concrete means of its manipulation,and found that Yanzhou Coal had a purposeful The special reserve account was processed and the reclassification of capital reserve was conducted in a timely manner,resulting in a significant increase in the amount of special reserves.In 2014 and 2015,a large number of special reserves were used,and some costs unrelated to production safety were handled through special reserves.To acertain extent,it plays an important role in reducing costs.Finally,the paper concludes that Yanzhou Coal Industry does exist in the practice of using special reserve policies for earnings management,and provides relevant opinions from the internal and external perspectives of the company to strictly regulate the financial behavior of the enterprise.Since the special reserve has multiple effects on earnings management,the factors that affect it are also varied.These effects are also subject to checks and balances between subjective and objective factors.As the economic and social development is booming,the way of managing earnings is gradually diversified.The theory is also gradually enriching,and various studies on the use of special reserves for enterprise earnings management behavior will escalate with the enrichment of relevant theories.