The Empirical Research On Making Use Of Allowances For Assets Impairment To Operate Profit For Agricultural Listed Company

For the Past few years,it is becoming fiercer and fiercer for the listed cmpanies to make use of assets impairment to operate Profits and this Phenomenon, which seriously affects the truth of the accounting information, is focused on more and more by social circles .Ministry of Finance promulgated assets impairment accounting standard in order to contain the behavior of driven Profits and forbid switch back the allowance of assets impairment . This paper expounds the relevant theory about assets impairment and shows the staple means of making use of assets impairments to operate profits in the listed companies. The conclusion of this Paper has important Practice significance for the listed companies to strength the supervision and management and to improve the quality of accounting information.The functions of current asset impairment accounting policy on earnings management of public company has been analyzed by theory, case studies,and real case diagnosis analysis,and functions of the Present Eight Allowance Items on earnings management has also been analyzed .This Paper deeply analyzes ZhongNong Company'data of the impairment form the aspects of provision, the impact on net Profit, causes analysis and so on, and comparatively analyzes the detailed items . Then it Proves that huge losses in the annual Provision for diminution should increase Period losses; Processing by ST in the annual back should raise Period Profits and make up the deficits and get surpluses: More flat annual Profits should be back to raise Period Profits and avoid Period losses; the main targets to terms and back are inventory and receivables, and the function of new standard"containment to driven Profits"has little effectiveness to ZhongNong Company .This Paper suggests that diminution back is allowed and is credited to the capital features,and can to be transferred to income when assents disposal. It has important reference value to standardize the information disclosure,increase the vigor of penalties irregularities, give full play to social auditing oversight functions, formulate the relevant Policies by supervisory section and strengthen the supervision and management.