The Impact Of Asset Impairment Policy On Earnings Management

With the increasing development of changes in economic conditions, technical environment, more and more the phenomenon of earnings management existing in our country’s capital market more attention from investors and operators. Impairment of assets as a listing Corporation is one of the main means of earnings management of preparation, is becoming more widely studied accounting and economics. In recent years, due to the listing Corporation by accounting for the impairment of asset intensified the phenomenon of earnings management, to produce a degree of adverse effects on the social parties, thus caused the attention of market supervision department and information users. For the effective containment listing Corporation making use of assets impairment to earnings management, improve the quality of accounting information of the original intention, the Ministry of Finance issued the "accounting standards for Enterprises No. eighth-impairment of assets" in2006February, the provisions of article seventeenth "asset impairment loss is confirmed, in following accounting period shall not be back". This means that, the new guidelines on those "preference" through a substantial impairment provision means to regulate the profits of the company is nothing but a great impact.This paper mainly adopts the method of combining normative research and empirical research, first describes the related theory of asset impairment and earnings management, and the relationship between the two, based on expounding the characteristics of the current asset impairment criteria and existing problems, from2011-2013years in Shanghai and Shenzhen two city home appliance industry listing Corporation Sample Firms, to relative financial data as the basis for the empirical analysis. Finally, according to the conclusion of empirical study, puts forward the corresponding countermeasures and suggestions, hoping to provide some reference for the research of earnings management, and urge enterprises to more conservative revenue recognition and measurement of assets, objectively reflect the enterprise’s financial position and operating results.