The Share-based Payment Standard, Earning Management And Internal Control Self-assessment

In February 15,2006,the Ministry of Finance issued the new set of accounting standards.One of the basic norms is《the Accounting Standard for Business Enterprises No. 11-Share-based Payment》(CAS11).The CAS 11 rule the share-based payment in the recognition, measurement and disclosure, ending the history of our country didn't have the share-based payment standards. In new standard use the fair value measuring share-based payment and is included in expenses. But many companies use the standard to control earnings. During the share-based payment, no matter before the announcement or after the announcement, the management layer often control earnings. It influences a long-term development strategy of companies, and the system of internal control can't effect. So improving the system of internal control and discovering the material weakness in internal control has great significance.Firstly, the paper introduce the accounting treatment to the share-based payment and its economic consequences.Secondly, the author come up with the whole frame of internal control self-assessment including the target,subject procedures and the basic content. Thirdly, choose 30 listed companies which have the share-based payment as the object of study. the paper makes descriptive analysis for the general information of the share-based payment in 2009.Meanwhile test the accounting earning and find the listed companies have the upward earning management. Later it analyses the relation between the earnings quality and the disclosure of self-assessment report and have the result that the disclosure of self-assessment report improve the earnings. Since the disclosure of self-assessment report improve the earnings, the listed companies need intensify the internal control, for example strengthen corporate governance, intensify and train staff, sound internal control system and disclose internal control self-assessment report in time.