New Accounting Standards On The Profits Of Listed Companies To Manipulate The Impact Studies

On 15.Feb,2006, Ministry of Finance issued new accounting standards system,which is highly harmony with International Accounting Standards. Effect of new accounting standards towards profit manipulation of companies which have come into the markets has incurred broad attention and hot discussion. This article focuses on the issuing of new accounting standards, via the study of effect of new accounting standards towards profit manipulation of listing companies, taking the establishment of accounting standards, accounting supervisal, internal governance structure as masterstroke, among which background of new accounting standards, comparison of new and old accounting standards run through the whole article. Finally, the article comes to constructive conclusion which can provide reference towards valid refraining of profit manipulation behavior. This paper begins with the relationship of profit manipulation and surplus management, defining profit manipulation as corporation behavior of increasing or reducing profit via illegal means. Reasons of profit manipulation is various, this article refers to inevitability and possibility of giving birth to profit manipulation, mainly focusing on necessary conditions of coming into the market, limitation of accounting standards, accounting principles, institution of establishing accounting standards and accounting supervisal. Through the study of certain items of new accounting standards, the article comes to the following conclusion: with the execution of the new accounting standards, some traditional methods of profit manipulation will be of no effect. In the meanwhile, new space will be provided to profit manipulation. Upon above study, the article provides defending measures and some suggestions about how to refrain profit manipulation. Some consideration is stated at the end of the paper, with our accounting standards' harmony with international situation, profit manipulation can only be refrained availably instead of being eliminated.