Research On Allocation Action Of Assets Impairment Of Listed Companies Of A Shares

To reflect the quality of enterprise assets truly, and improve the value relevance of accounting information,the new"Accounting system for business enterprises"that formulated by Ministry of Finance at the end of 2000,expanded the range of the assets write-downs that promoted assets write-downs as "eight items"by "four items". However, did this original intention realise? From the accounting practice of recent years, some events that some companies such as Kelong electricals,Sichuan ChangHong and Southern Securities used the promoted assets of assets write-downs to carry on the earnings management. Therefore, what factors affect the actions of promoted assets of listed companies? What time point for the listed companies might adopt what method to make the earnings management using promoted assets of preparation of assets write-downs? Whether the CPA who audits the accounting statements of listed companies can reveal the abnormal actions of promoted assets or not? And can the investors effectively recognize the accounting data of listed companies? These are the key contents to be studied.At first, the influence to promoted assets action of listed companies with small profits from three factors of industry environment, self achievement and motivation of earnings management is analyzed in this paper. It indicates that the company with small profits reduces the ratio of preparation of promoted write-downs based on improving the motivation of achievements, but possibility of adopting the method of turning back the assets write-downs preparation is not evident, while the companies with small profit whose top manager is changing and are deficit in next year will increase the ratio of promoted assets write-downs and is more likely to adopt the method of forward promoted asset write-downs preparation. Meanwhile, the companies find out that the factor of self achievement is negative revelant with the ratio of promoted assets write-downs preparation, however, the influence of the earnings ability of industry which the company is in to its promoted action is not evident.Secondly, from the horizontal and vertical angle, the earnings management action of promoted assets write-downs preparation of the companies who are profitable first and then loss is analyzed. It is shown that the ratio of the promoted assets write-downs preparation of the companies who are profitable first then loss in loss year and the possibility of forward promoted assets write-downs preparation is remarkably more than that in profitable year and the second year of the two continuous profitable years, but there is no remarkable difference between them in assets quality, which to some extent indicates that the abnormal promoted action in loss year is more likely induced by the motivation of earnings management, but not the asset depreciation for the fact. Meanwhile, the research didn't find out that there is earnings management in the profitable years.Thirdly, from the view of auditor, the auditing identification of promoted assets write-downs preparation is analyzed. The results indicate that higher ratio of forward promoted assets write-downs preparation and that in loss year, the more probability of CPA presenting the non-standard and clean opinion, but in the profitable years, there is no remarkable relevance. The results also find out the average value of the ratio of turning back assets write-downs preparation when presenting the non-standard and clean opinion is evidently less than that when presenting the standard and clean opinion, which to some extent shows that the CPA can effectively recognize the the abnormal promoted action.At last, from the view of investors, the value relevance of accounting earnings information of promoted assets write-downs preparation is analyzed. The results indicate that the value relevance of accounting information after preparation of promoted assets write-downs of listed companies is higher than that before promoted, but this difference is not remarkable(except for the whole companies); the data of promoted assets write-downs preparation to some extent does not effectively reflect the the loss of assets write-downs, and does not have the value relevance of increment(except for the loss companies); the value relevance of accounting earnings information of loss listed companies is more lower than that of non-loss companies, but value relevance of net assets index between them is not notably different. The results also find that the effect that the net assets index of loss listed companies to investors' decision is more than that the accounting earnings index to investors' decision, however, it is opposite for the the non-loss companies and the companies of turning back the assets write-downs preparation. In addition, it is also shown that the investors cannot effectively recognize the accounting earnings quality of the large loss companies and the profitable companies by turning back the assets write-downs preparation, while they can effectively recognize the companies with thin profits.