The Correlation Analysis Between Intangible Assets Impairment And Earnings Management In The Listed Company

Intangible assets accounting standards is a double-edged sword, if used properly,it can improve the quality of accounting infermation.or it’ll"help"the eamings management distortthe accounting information of listed company,andharm the legitimate interests of investors.The intangible asset impaiment and earnings managenment has been one of the focus of the accounting field.Since2000.the enterprise accounting system required "comprehensive plan eight impairment".Intangible asset impairment has become public listed company’=’s commonly used means of earnings management.this kind of phenomenon caused more and more stakeholders concems. Therefore, the ministry of finance on feb.15.2006promulgated new accounting standards about the provisions of the asset impairment.Compared with the original accounting standards there has been alot of changes to the accounting standards fou enterprises no.8-asset impairment of assets impairment policy has greater adjustment.requires once lont-term asset impairmert loss is determined, in the later accounting period it shall not turn back, only in the disposal of the relevant asset continues its accounting treatment.The new guidelines limit enterprise using reducing plan base, changing the behavior of the operation profit ratio provision, relatively complete method of information disclosure. For the listed company, it wiil have a huge impact that the provision for assets impairment and turned back, and, to some extent, limit the listed company profit operation by earnings management.Whether we can achieve the expected effect that this adjustment policy makers want, the new guidelines in the intangible asset impairment can curb the relevant provisions of the listed company in earnings management.improve the quality of accounting information.also becomes one of the hot topics always debate between accounting theoiy and practice in our countryThis article does some research about asset impairment accounting in the course of development of the international, the United States and China, and explains the impairment of intangible assets to manage earnings principle in the listed companies, expounded earnings management motivation and performance on the basis of domestic and foreign scholars’theoretical research in China’s listed companies. In this paper, putting the Shanghai A-share listed company as a research object, it selects the listed companies of Shanghai Stock Exchange from2007to2010the provision for impairment of intangible assets as a sample, using the modified Jones model to measure the surplus level, the establishment of intangible assets ready surplus of provision and management level multivariate linear model, and their correlation analysis, regression analysis result says:the existing system of asset impairment, there is a phenomenon a considerable part of the listed companies still uses the impairment of intangible assets to manipulate profits, and impairment of intangible assets of provision and earnings management level was significantly positively correlated, finally this paper puts forward policy recommendations for the future to address this situation.