On The Effection Of The New Accounting Standards To The Listed Companies' Earnings Management

As the role of security market turns to be more and more important, the financial reports which are offered by the listed companies have been considered as the most important basis by which people make decisions. Its authenticity and justice concern the interests of each side directly, and concern the rational disposition of social resources and sound development of the capital market, therefore it makes the earnings management become the focus and attract the attention of millions of people. The Appropriate earnings management can help improve accountant earnings decision-making information content, make earnings information reflect company's economic value, but in our country it is not used correctly by listed companies, its negative effect is far greater than its positive function, it has reduced the information dependability of the financial report, affected the optimal distributing resource function of capital market seriously. It has become the key factor hindering Chinese stock market development. Accounting criterion is the key factor of harnessing earnings management. So, when excessive earnings were over-take by enterprises, the new criterion was born in 2006.First of all, on the basis of building the theoretical framework for earnings management, the thesis researches the relationship between earnings management and accounting standards. Then,it analyzed the new criterion to be listed earning management influence from two aspects as containment of the new criterion to companies'earnings management, the space of earnings management in the new criterion. The new criterion is advanced and complete, it is also in harmony with international accounting standards . Although it plays an important role in controlling excessive earnings management behavior, it also offers the facility of overflowing earnings management behavior. In this paper, Statistics sampling distribution method helps to demonstrate the conclusion: Those companies who window-dress their operation performance with bad intention through the new dept recombine, non-monetary assets exchange and business combination standards will show their tails in the percentage of non-operation net income to total profit.Finally, we summed up the various parts conclusions, analysis the harnessing suggestion on earning management and proposes suggestions for the update of accounting standards of our country,such as modify and perfect the accounting standards, pay attention to execution of criterions. Especially in the paper ending part, the author pointed out there is a long gambling between the accounting standards and the earnings management. Because of the accounting standards limitation in making mechanism, system and content, it offers the facility of overflowing earnings management behavior. Based on such reason, earnings management itself already no longer is an important problem. So the accounting's decision maker should pay attention to how coordinated the relation between the information users ,and how to strive for the initiative position in gambling to control the earnings management, also should make every effort to control the earnings management in a satisfactory scope which is also the people may"endure"in the scope.