The Research Of The Relationship Between Impairment Of Assets And Earnings Management

Asset impairment and earnings management are always the focus of accounting field. The influence of new assets impairment standards on enterprise assets impairment lies in the following aspects:expanding calculating range of assets impairment, clarifying judgment basis of impairment evidence to make measurement principles on recoverable mount more practical, prohibiting calculating impairment reverted, introducing new concept to make information disclosure more perfect. In addition, the new accounting standards restrain the behavior that enterprises manipulate profits by decreasing calculating cardinal and changing calculating proportion, improve the methods of information disclosure, and control enterprise earnings management to some extent.In order to prevent profit manipulation. The Ministry of Finance in China on February 15,2006 issued 39 new enterprise accounting standards, Enterprise Accounting Standard 8th-Asset Impairment was included, which requires that any recognized impairment losses cannot be reversed. Is it effective in reducing the wide spread earnings management now? Will it improve the equality of accounting information? These questions have become a focus point for accounting practice circles.This paper selects the basic theory of impairment of assets as a starting point for research. Firstly, introduce the research results of domestic and foreign scholars in the field of asset impairment accounting. Secondly, this paper introduces the motivation and manifestations of the earning management of China's listed companies. The thesis takes the contrast of Chinese Listed Companies before and after new accounting standards as the research object, and gives analysis on the present situation that Chinese listed companies use the confirmed and rum back of impaired assets and the impact of new accounting rules for impairment of assets for earnings management. According to data analysis, the analyses of accounting data from 2005 to 2008 partly reveals the trend of the impaired assets of our listed companies since 2006.In the last part of this paper in view of the above findings and the problems during the implementation of the new accounting standards, the regulation of earning management of impaired assets in the future and some policy recommendations were are advised.