Research On Earnings Management And Internal Control Self-Assessment For Implementation Of Assets

Enterprise Accounting Standards (2006) added a new, specific criteria named Impairment of Assets, which made the system completely. The new standards of asset impairment has a lot more changes than the previous accounting standards, especially the prohibition of the reversal of long-term assets for impairment, the addition of the assets group, and so on. The changes may bring in economic consequences, change the emphasis of the internal control in listed companies, and influence the quality of the accounting information. The new standards have executed in listed companies for more than four years. This paper focus on the economic consequences of the new standards, and whether it regulate the behavior of provision for asset impairment in listed companies, find the risks in internal control under the new guidelines, and raise recommendations about self-evaluation of internal control.This paper started with the introduction of the background of the new standards, expounded the purpose and significance of the study, summarize the research of impairment of assets and internal control self-assessment by domestic and foreign scholars and defined the content of this article. Compare the new standards with the former standards. Then, in the empirical part of this paper, based on the relevant financial data disclosed in annual report of manufacturing listed companies between 2006 to 2009, this paper establish a multiple linear regression model, and make a comprehensive systematic quantitative analysis about the new standard for the assets implementation and its affect on earning management in the listed companies; based on the test result, analyse the new risks in the internal control of the impairment of assets, descripe the disclose of self-evaluation report. At last, according to Guidelines on Internal Control Applications and Guidelines on Internal Control Evaluation, make recommendations about how to strengthen self-evaluation of internal control. Enforce the regulation of the disclosure of the internal control self-assessment report to establish a sound internal control and improve the quality of accounting information.Studies show that the new guidelines do compressed space of earnings management of listed companies, effectively curb the behavior of earnings management in listed companies and have made great progress. But there are still some limitations, which required companies strengthen internal control of assets impairment, disclose the self-assessment report of internal control timely in order to improve the quality of accounting information.