Research On Dongfeng Automobile Earnings Management On Fair Value Measurement

With the continuous development of capital markets, as well as new economicbusiness and business activities continue to emerge, Users of accounting informationincreasingly high demand for information related to decision-making, historical costmeasurement can not adapt to new economic environment requirements. while fairvalue is a measurement attributes that be market-oriented, dynamic, and can reflectassets and liabilities’s future value, the introduction of fair value in the accountingsystem is the necessity of the historical development of accounting measurement.China in2006issued by the Accounting Standards for Enterprises in theintroduction of fair value measurement, and implemented in listed companies fromJanuary1,2007. As fair value sometimes difficult to be measured, in the absence ofthe same or similar assets and liabilities market price can be referenced to, need to usecomplex valuation techniques and involves many uncertainties, the enterprise may usefair value inappropriate to achieve the purpose of earnings management, fair valuemeasurement has been brought to the enterprise new space for earnings management.And it will lead to distortion of accounting information, it is not conducive to theoptimal allocation of economic resources and capital market’s healthy development,Research on the fair value measurement of earnings management, as to the proper useof fair value and governance earnings management of great significance.This paper first introduces the theory of fair value and earnings management; thenanalyzes what influence has been brought on the earnings management by theapplication of fair value in current accounting standards; on this basis, designed theevaluation index system of earnings management on fair value measurement, and theDongfeng Automobile is analyzed, the analysis showed that, Dongfeng Automobiledoes exist earnings management tendency by using fair value measurement; Finally,provides some advice for the governance of earnings management on fair valuemeasurement. the conclusions in this paper, is that the use of fair value does notnecessarily lead to earnings management, but it will become the tool of earningsmanagement can borrow. fair value on the basis of continuous improvement will bemore widely applied, the existence of earnings managementt have a profoundtheoretical basis and diversification motives, its governance is a long process.