Research On Assets Impairment And Earnings Management In Listed Companies

. Along with the continuous development of technology and economy, accounting for impairment of assets has been one of the central issues over the world. The fuzzy and flexible characters which the assets impairment theory possesses can satisfy various companies' objects for earnings management, consequently, it has been one of the most important tools for listed companies to adjust the earnings. In order to change the situation, Ministry of Finance issued accounting rules for allocating impairment of four assets reserve in 1998 recognized in"Accounting regulations for listed companies". In the end of 2000, the new released'Enterprise Accounting Criteria'defined'asset'in a new scientific way and emphasized the accounting policy in execution of assets impairment, further to develop assets accounting theory. The new Assets Impairment accounting standards for business enterprises that issued by Ministry of Finance on February 15th, 2006, standardizes the impairment of assets more specifically. But there is still space in execution of the New Accounting Standards of earnings mangaement. Excessive earnings management can not only weaken the stability of information for the earnings, further effecting the allocations of social resources, but also mislead the decision-making of the investors, jeopardizing the long-term development of the enterprises. Therefore, how to perfect the assets impairment theory to prevent excessive earnings management and to find out the right solutions becomes the must-be issue for the accounting theory and practice.Based on the relationships of impairment of assets and earnings management, the thesis takes the status quo and the contrast of Chinese listed Co. before and after New accounting standards as the research object, and gives analysis on the present situation that Chinese listed companies use AFIA and the impact of new accounting rules for impairment of assets for earnings management so that we can propose solutions on the perfection of impairment of assets to limit earnings management.The paper uses both regular analysis and empirical analysis when explaining the conceptual issues, as well as qualitative and standardized methods. In the process of grouping common issues into specific ones, the methods used in this paper are quantitative and empirical research methods, trying to find the breakout and innovation of the research methods.