Research On The Influence Of Listed Company Assets Impairment To Earnings Management

The earnings management is an important domain in accountant studies, the earnings management mainly is one kind of accountant behavior, but its method not only is restricted in the accounting method, mainly has skillfully estimates, the use connection transaction, with the aid of local authority's support with the accounting policy and accountant and so on . Assets impairment accountant processes needs accountant the personnelto carry on the choice to the accounting policy, and makes the occupation judgement , the opportunism behavior is possibal, the company may choose accountant processing method to the company or itself advantageous . In other words the assets impairment is possibly one earnings management method. In Enterprise Accountant standards, standards requests to withdraws eight property assets impairment, Each assets impairment preparation extraction in implementation in the past permit backward adjustment, thus manifested each kind of loss in a before year, and only affected to works as time shareholder rights and interests beginning of the year undistributed profit, but to work as time profit not too tremendous influence. In addition ,in the aspect of assets impairment preparation withdrawing and flushing, the enterprise has the very big self-adjustment leeway, this gave the company the opportunity to plaster accounting report form. The Ministry of Finance promulgates the new"standards for enterprise accounting"in February , 2006; the new standards has done very big revising on content , and has an effect to have kept the negative effect that a listed company earnings management within limits。The new criterion to the fixed asset, the intangible asset, the long-term stockholder's rights investment, will be constructing the project and so on as soon as to pass through withdraws the later year not to have to return, This had effectively prevented goes on the market the company to use the assets impairment to prepare time to owe suffices, again rereturns profit operation method. This regulation has been a very big modification , it has been a permanency standard , has avoided enterprise affirming provisionality loss , has ensured that accountant data authenticity composes in reply comparable sex. Now that not bad with cost principle keep have decreased by the space that profit controls consistently, to a certain extent, request according with height mass accountant standards more. Enough to be able to have an effect to prevent a listed company from making use of assets impairment to prepare a wane, the profit rotating back to again controls a means. This article selects the sample from the enterprise In 2005 year to be listed and analysis in the basis of assets impairment rationale,earnings management existence reason, method. Mainly select the corporation to be listed of put off hat in2005 year, twenty-two corporation to be ST and thirteen corporation of IPO to be analysed . Regarding the company of put-off hat front, if after puts off hat the profit is negative, using assets impairment returning the profit becomes and casts off, because the company counted the massive assets impairment to cause the profit for negative regarding of increasing ST Corporation. The IPO company also has the possibility to enable it using the assets impairment to achieve first round condition. The main body of a book have chosen deficit in 2003,2004, 30 companies who gain a profit of in 2005 are a sample book, the regulation mentioning and rotating back to in rotating back to condition , being tied in wedlock the new standards once the plan not to be mentioned carries out the plan having analysed fixed assets and intangible assets mainly studying.The main body adopts norm research method, case analyses law , diagram analysis law to explain the conclusion .The conclusion: there are nine corporation by assets impairment returning the profit in twenty put-off corporation ,the rational is 45 percent. This explained the assets impairment returning avoids to be listed stopping the sign to play extremely vital role. The assets impairment is important to corporations to be listed which puts off hat especially, this mainly caused by revoking the priviledges , drawing back and the motive to be listed. Through obtains the assets impairment to the sample analysis to the earnings management picture and the property depreciation mean value chart. Through carries on the analysis to 2005 year selections sample, may see the new standards before to stipulate some go on the market the company truly to exist using the assets impairment carries on the earnings the procedure. Fixed assets and the intangible assets rotating back are important means of profit to the ST company . New standards regulation makes use of assets impairment to carry out earnings management behavior having certain inhibitory action to a listed company,but still exist the certain Earnings management space .The article have submitted five suggestion to prevent making use of assets impairment under new standards of a listed company from continuing carrying out earnings management behavior, Viewpoint is distinct ,the conclusion is limpid.