The Research On Earnings Management Of Chinese Listed Companies Under The Current Standard Of Asset Impairment

With the development of social and economy and the change of science andtechnology, the risks of operation and financial status of enterprises are increasing,and the profitability stability of the assets of enterprises are especially facing the hugetest, thereby, the earnings management in recent years gradually surfaced and becamethe focus of accounting theory and practice.Through the provision for impairment and back of assets manipulation of profitis one of the important means of China’s enterprises, especially listed companiesearnings management, which make the bad impact of accounting informationauthenticity, reliability and comparability, damage to the vast number of investors andthe accounting information users of the legitimate rights and interests, caused a badeffect to economy of our country market benign development.On February15,2006, The Ministry of Finance promulgated the" EnterpriseAccounting Standards No.8--Assets Depreciation", to curb our country enterprise’searnings management behavior to a certain extent, but any regulations are not puttingthings right once and for all, the impairment of assets is the same one, it still existsmany shortcomings, which still stay room to the enterprise made great use ofimpairment of assets policy for earnings management.In this paper, the research on earnings management of listed companies under thecurrent standards of assets impairment is divided into the following several parts: first,under the summary of research status in the domestic and international, elaborated thetheoretical connotation related to the earnings management and the impairment ofassets, analyzed the relationship between the asset impairment and accountinginformation quality, the premise and motivation of earning management. Then for atime sequence narrated our country asset impairment policy development process, incontrast to the current standard of assets impairment to former policy, and through thetheoretical analysis, summarized the influence of current standards of assetsimpairment to earnings management of Listed Companies in China. Then for thesample, through the statistical analysis of the annual financial reports of40listed companies in the market of Shanghai and Shenzhen from2008to2010, analyzed thepresent situation and the existence question of earnings management of listedcompanies under the current standards of assets impairment, and through specific caseof the*ST Amoi company, revealed and validated the above questions. Finally, thispaper putted forward the specific problems of the current standards of assetsimpairment in the implementation process and the possibility of the existence of spacefor earnings management, and putted forward some targeted advises, such asimproved accounting standards and regulatory system, improved the price market,strengthened the external supervision and internal control system, improved thecomprehensive quality of accounting personnel, hope for the relevant policies makersand researchers to provide useful reference.