The Influence Of The Nonrecurring Gains And Losses On The IPO Of Our Country’s Companies Planning To Be Listed

Corporate earning is an important index to measure the profit ability of an enterprise, and also a comprehensive performance of its operating performance. In Chinese capital market, there are clear rules in accounting surplus index about the qualification of listed company, acquisition of additional equity offering and stock dividend right, stock special treatment, suspended for listing and delisting retreat and other policies. The disclosure of nonrecurring items will have great influence on the surplus. To achieve the above qualifications, Enterprises generally use the nonrecurring items to manipulate regular accountancy surplus. The profit sustainability of non-recurring gains and losses is far below the daily main business income for the enterprise. With the continuous development of Chinese capital market, CSRC in1999introduced the concept of non-recurring items into the disclosure of the profit and loss items for the first time, required listed company to disclose the net profit and the net profit after deducting non-recurring items in the annual report. Measuring the performance of the companies involved in capital market after eliminating the influence of the profits and losses of the nonrecurring items, is helpful for investors to judge the enterprise performance and sustainable profitability of the IPO company and listed company. The CSRC will set the earnings after deducting the nonrecurring gains and losses as the appraisal standards of issuing new shares, refinancing and the picking cap of ST companies. It is beneficial for leading the companies to improve core competitiveness and to guarantee the sustainable profitability through focusing on the main business. The financial statements separately disclose the net profit indicators after deducting nonrecurring gains and losses. It can help investors excluding the interferences of the nonrecurring gains and losses on the corporate surplus. The improvement of the quality of information disclosure is helpful for investors to understand and grasp the consistently profitable ability of the related company, so as to make reasonable investment decision.This article uses the methods of normative analysis, empirical research and case study. The research on the influence of the nonrecurring gains and losses on the IPO of our country’s companies planning to be listed is divided into five parts. The first part mainly elaborates the background and the practical significance, combs existing research results at home and abroad, and then determines the research content and methods, etc. The second part uses normative analysis method to discuss the basic concept of the profits and losses on nonrecurring items, introduces the securities issuance system in our country and the evolution about the regulation on nonrecurring items formulated by CSRC. The third part is the empirical analysis. It calculates the constitution of the nonrecurring losses and gains, as well as the contribution to the net profit during the reporting period and the listed year of the59enterprises which had passed the2009auditing by the CSRC gem issuance and auditing committee. Studies have shown that the local government fiscal behavior of government subsidies and tax relief for the return of projects accounted for the highest proportion of nonrecurring gains and losses, the corresponding contribution to net profit, and there is increasing trend year by year; while the other belongs to the enterprise’s own business activities and investing and financing behavior of asset transactions, projects a small portion of nonrecurring contribution to profit and loss or even negative contribution. The fourth part uses method of case study, taking Shanghai Qixiangqingchen Chemical Technology Co., LTD as an example, to explore the earnings management motivation and means in IPO process through the nonrecurring items. The fifth part summarizes the main point of view and puts forward some suggestions and countermeasures.