Research About Listed Companies Impairment Of Assets On The Impact Of Earnings Management

In a long time, China’s listed companies prefer using earnings management tomanipulate profits,this phenomenon has always existed.Earnings management can play arole in profit management within a certain range. However, the excessive earningsmanagement will affect the quality of accounting information, causing investors to makemistakes or invalid decisions. This will led to creditors at greater risk and result in thesupervision department can not make effective supervision. To avoid excessive earningsmanagement, in2006the new accounting standards has been promulgated.The newaccounting standards prohibit reversing the loss of long-term assets. Although thisprovision prevent the listed companies from using long-term assets to manage earnings.It is common for the listed companies to use short-term assets such as inventory fallingprice reserves and bad debt reserves to manage earnings.In this article,to study the issue of short-term asset impairment earnings management,Iuse empirical research,qualitative research method and case analysis methods. In this paper,from the perspective of listed companies using short-term assets impairment to manageearnings.First,analysis the results of previous studies, summarized the effects of short-termasset impairment to earnings management. Secondly, elaborate the theory of assetsimpairment and theory and motivations and the methods of earnings management. Thenanalyzes the impact of the new accounting standard for assets impairment for earningsmanagement. Again, choose a representative listed companies B for example.In the pastfew years，the reversal of provision for impairment of assets volatile and a loss to companyB,at the same time,a lot of other irregularities happened to company B.This is why selectcompany B as an example.In this paper, the profitability of Company B of the last eightyears, several of its recent reversal of the impairment provision and preparation foranalysis, pointed out the reasons for these violations occur, the analysis of the B Companyreversal of provision for impairment of assets and prepare for the performance of thecompany’s B prejudice.Finally, in terms of other listed companies themselves, the externalenvironment and the law of earnings management through asset impairment phenomenamake recommendations accordingly.However, given the previous year on researchquestions related mostly empirical analysis based, this paper analysis method, although the case is a new perspective, but because of objective limitations of selected cases,impairment of assets for the use of earnings management research only several aspectsfrom the commencement of the limitations, the impact of asset impairment of earningsmanagement also needs to be more comprehensive and deepen the study.