Impairment Of Fixed Assets

China's widespread use of many listed companies preparing for impairment of assets of the phenomenon of earnings management,To make a serious distortion of accounting information, In view of this situation , China in January 2007 on the promulgation of a new "Enterprise Accounting Standards",the new criteria based on the original modification and improvement of asset impairment accounting policy. Provisions of the new guidelines,Long-term assets such as fixed asset impairment provision upon,Not allowed back after the accounting period.But its real purpose, That is effective to contain a listed company, In particular, capital-intensive enterprises to take advantage of surplus fixed assets for impairment yet the conduct of management theory and practice to verify, At this stage, China's listed companies are also preparing for the use of fixed asset impairment and how to use earnings management? New fixed asset impairment policy to curb the success of the enactment of the listed companies to use its surplus to the management?In this paper,mainly from the ready provision for impairment of fixed assets ratio and the back of the net change and the impact of two aspects,will be screened in Shanghai and Shenzhen A shares 92 per cent of the total assets in fixed assets for more than 40 percent the proportion of listed companies is divided into three samples of its 2005-2007 Annual Report for three years for analysis. Horizontal,vertical comparative analysis reveals the three fixed asset impairment ready to manipulate profits,content and changes.This paper has two innovative points:First,the refinement of the research,impairment of Assets of China's research on more, As of February 20,2009, impairment of fixed assets,based on impairment of fixed assets as a research content,refinement of the object. Second,try to standardize the qualitative research to quantitative empirical research,as of February 20,2009,standardized research and empirical research method of combining study of China's listed companies prepare for the use of fixed assets for impairment to manipulate the law of profit.The study found:the first year of a listed company at a loss of large amounts of ready provision for impairment of fixed assets,back to the year of large losses;Listed companies 2005,2006 consecutive years creased provision for losses,; net ready to have a tremendous negative impact;2005,2006 loss making years in a row of listed companies increase provision;Profitable for three consecutive years the company ready for impairment of fixed assets net income was less affected.