Studies On The Impact Of The Changes In Asset Impairment Accounting Standards On Earnings Management

In February15，2006，the Ministry of Finance issued the "Accounting Standards forEnterprises No.8-Impairment of Assets"， which make a more clear and detailedrequirements in impairment of assets， recognition， and measurement. Its purpose isthat avoid enterprise from earnings manipulation by Impairment of Assets Policysince the "enterprise accounting system " implemented，and provide more effectiveinformation for the secondary market by reflecting the asset quality more real andfirm. So， whether this policy can curb the behavior of earnings management oflisting corporation or not?And wether the effect is significant? That is the right thingthis paper will study. This paper will study the annual asset impairment data of thefinancial statements of A shares of listing corporation，using the current accountingstandards as background.Starting from the different motives of earnings managementof listing Corporations，I divided the data according to different earnings managementmotivations into different categories， and choose the pure companies as the controlsample to do independent samples T test to verify the hypothesis： under the currentasset impairment policy， the phenomenon of using assets impairment to do earningsmanagement operation is still exist in listing corporations.Then put samples into theregression equation to further verify the hypothesis. At last，a conclusion is drawn.Finally，some suggestions to the problems that the empirical analysis reveals is putforward， in order to curb the earnings management operation by adjusting the assetimpairment. Hoping that these suggestions could provide valuable information tofuture studies and could help fine down standards to improve the usefulness ofaccounting information.