New Accounting Standards On Manipulation Of The Profits Of Listed Companies

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 listing companies 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 master-stone ,among which background of new accounting standards, comparison of new and old accounting standards run through the whole article.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 excessive, this article refers to the inevitability and chanciness of giving birth to profit manipulation, mainly focusing on localization of accounting standards, accounting principles, institution of establishing accounting and accounting supervisal. Through the study of certain items of new accounting standards, the article provides some suggestions about how to refrain profit manipulation. And some consideration is stated at the end of the paper, which is about whether or not the new accounting standards suit the situation of China? Profit manipulation can only be refrained instead of being eliminated it.