The Research Of Earnings Manipulation In The Finance Lease

Finance lease is a new kind of lease since 1950. Because it has the function of finance, investment, trade and asset management, finance lease has become the secondary finance source only next to bank loan since its generation in American since 1952. Although finance lease arises late in our country and its market infiltration rate is far below the developed countries including U.S. and Japan, with the recognition of the strong economic function of finance lease by social communities, and the support of the national macro policies and the push of the entry of WTO, finance lease has very wide market development prospect and it is a real sunrise industry. Accompanied with the prevail of finance lease, the problem existed in the finance lease also arises. Especially the events of using finance lease to manipulate profit in foreign countries emerge in an endless stream, and to some extent, this will affect the development of finance lease in our country. This paper makes finance lease as object of study, analyzes and studies the problem of earnings manipulation in the finance lease, in the hope of improving our finance lease institution and promoting the healthy development of the industry of finance lease in our country.This paper analyzes the earnings manipulation in the finance lease from the following aspects:The first part mainly introduces the basic theory of earnings manipulation in the finance lease and integrates finance lease and earnings manipulation together through the influence of finance leases to the accounting statements.The second part compares with the motives of earnings manipulation both domestic and foreign countries, finds that there are special motives of earnings manipulation for our country, and analyzes the conditions that result in the earnings manipulation in the finance leases in our country.The third part mainly analyzes the specific means of earnings manipulation in the finance leases such as making use of the judgment criteria in the finance lease to construct the lease contract, utilizing the discount rate, fair value of the lease assets , related party transactions, sale and leaseback transactions and sales lease to manipulate profit.The fourth part gives some suggestions to improve the accounting standard for finance leases and related law and policies from institution factors and human factors, and points out that we must work along both lines to control the earnings manipulation in the finance lease.