The Fair Value Of The Application Of The Impact Of Earnings Management

Earning management is a topic started from the Eighties of the last century in accounting theory circle in western countries. However, the study history of it in our country is not long. Earning management phenomenon has already become one of the focuses to the numerous departments in process of our country's securities market development. The introduction of fair value measurement model in the new Accounting Standard has in particular brought about people's concern about the abuse of fair value. Therefore, to apply positive method to study the earning management issue of the listed companies in our country has becoming extremely necessary and urgent.This article begins with a summary of earning management study both at home and abroad, base on which the study method in this article is raised. Afterwards, the application range of fair value in the new Accounting Standard is described in detail and the influence to the listed companies after the introduction of fair value is analyzed so as to study its theoretical possibility to become an earning management method and consequently raise the research hypothesis of this article. In the main part of this article, that is also the positive study part, the 2008 annual report of A share New Energy listed companies is taken as an observation sample to verify the hypothesis based on the modified Jones Model by using SPSS Statistical Analysis tool.The conclusion of this analysis approach shows that relativity between fair value application and earning management is not significant. The activity of earning management in the listed companies is influenced due to the monitoring from government and many other departments; as a result, it is less likely to carry out earning management upon information disclosure by means of fair value. Regarding the earning management in our country's listed companies, relevant counter measures and suggestions have been raised in the end of this article. The counter measures and suggestions have certain practical and referential value to standardize activities of the listed companies as well as to increase the accuracy of information application, at the mean time, they also realistic significance in boosting the healthy development in securities market.