A Study On The Behavior And Motivation Of Listed Companies To Apply Asset Impairment Accounting

Although the newly revised accounting standards in 2006 restrict the reversal of long-term asset impairment,to a certain extent,they restrain the listed companies from using asset impairment accounting for earnings management,but there are still many cases of excessive earnings management using asset impairment accounting after the promulgation of the current standards.Excessive earnings management will seriously damage the authenticity of financial information,affect the decision-making of other financial information users,and damage their interests.As the punishment of post supervision is not serious,this phenomenon has been prohibited repeatedly.Based on this,this paper will start from the behavior and motivation of the case company’s application of asset impairment accounting,explore how the company uses asset impairment accounting for earnings management,and what are the corresponding solutions?For this reason,this paper deeply studied the relevant theories and research,and selected Shandong Jinling Mining Co.,Ltd.as the research object for analysis.Based on the financial and non-financial information of the company from 2014 to 2018,this paper makes a detailed study on the asset impairment treatment of receivables,inventory and long-term assets,and analyzes the application of asset impairment accounting in the process of turning from loss to profit in 2018 after two years of striving for profit in 2015 At.Finally,it is found that the company has excessive earnings management by using the defects of the current asset impairment related standards due to the change of management and in order to avoid delisting.The company manipulates profits by changing accounting estimation policies,aging accounts receivable,abnormal provision of inventory depreciation and long-term asset impairment.Finally,in view of the problems exposed in the application of asset impairment accounting in case companies,this paper explores countermeasures and suggestions that can be widely applied to standardize the asset impairment treatment of listed companies,such as improving the relevant provisions of accounting standards,improving the market system,improving internal governance,etc.,hoping to help standardize the application of asset impairment accounting in domestic listed companies.