Impairment Of Assets On The Impact Of Earnings Management

Earnings management using the accrual and the reversal of asset impairment accountingresearch focuses on an important element, because this means favored by the listed companies.China’s Ministry of Finance on February15,2006issued a new corporate accounting standards, andmade larger to modify and improve the specification of asset impairment. Implementation of thenew guidelines to curb the companies use the accrual and the reversal of asset impairmentadjustment surplus whether there is a positive role in the accounting sector has agreed to debate.This paper first introduces the impairment of assets and earnings management theory, analysis ofthe development process of the asset impairment criteria on corporate earnings managementmotives and characteristics, as well as the relationship between the two. The article cited theinstance of the listed companies in the study of the impact of asset impairment of earningsmanagement enterprise inhibited to some extent, and for impairment of assets before and after thenew standards made the data analysis, and draw new guidelines impairment of assets to adjust thebehavior of the surplus, but the new guidelines is not without limitations, can not completely curbthe behavior of the enterprise, there are still some adjustment space. Finally, the new criteria for theexistence of surplus space, the points corresponding policy recommendations.