The Research On Earning Management Used By Non-recurring Profit And Loss

With the continuous development of China’s capital market, investors requires authenticity and reliability of the financial statements of listed companies are increasing, and they also pay more attention to the use of investment analysis. Accounting Earnings is very to the investment analysis, so the importance of this indicator prompted many of the listed company’s management chose to use some subjective accounting policies to adjust it and to seek better performance indicators, which also gave birth to the so-called " earnings management." Accounting earnings are usually recurring gains and non-recurring items Recurring gains and losses tend to have sustainability is a core corporate earnings, investors can use it to do the reverent analysis to determine their key consideration; non-recurring profit and loss are occasional recurring gains and have one-time characteristics, which makes investors hard to identify the true value of the enterprise. But non-recurring items unique chance allows businesses use this project accounting surpluses subjective management as possible, so it becomes a non-recurring earnings management of listed companies in important ways and channels. China’s listed companies in recurring gains and losses attributable to the proportion of accounting earnings have been increasing, which makes investors find their confused in analyzing and determining when.prejudice the capital markets efficient allocation of resources. since1999SAC begin to define non-recurring gains and losses, five times of the amendments and supplements may reflect its importance in regulating the extent of non-recurring gains and losses disclosed, but annual disclosure of listed companies is still not standardized everywhere. In-depth analysis of specific research projects of non-recurring gains and losses in favor of investors correctly understand the analysis of the profitability of listed companies to make the right investments science.same time can help regulate the disclosure of non-recurring gains and losses.and improve the quality of accounting information on the securities market, protect the economic interests of investors.In this paper, the selected case companies-Hanwang Technology, as happened a few years after the listing of the multiple of earnings management behavior, and a collection of a variety of common practices, case studies therefore used with strong operational and representative, to better achieve the purposes of this article-by analyzing the case’s introduction to better reveal the existence of the use of the non-recurring capital market earnings management of negative phenomena, and to find better constraints such cases norms and methods. In this paper, there are five main part:The first part (chapter one) in this paper. Mainly introduces the research background and significance of the paper, the paper elaborates the overall framework and the research mentality, and put forward the innovation and the deficiencies of this paper.The second part of this paper. Literature review of the related literature of domestic and abroad were reviewed, To summarize the domestic and foreign literature for the study of the non-recurring profit and loss as well as the use of non-recurring profit and loss account for the research situation of earnings management, and the study of the overall situation to carry on the comprehensive review.The third part of this paper. This part of the paper are introduced the necessary theoretical background, including the definition of non-recurring gains and losses of the relevant definition, compare the contents of the relevant provisions, and the difference, both in domestic and abroad and introduces the related theory of earnings management, and finally summarize the general ways used to do earnings management circumstance of specific non-recurring profit and loss account.The fourth part of this paper. the core part, an analysis of the whole paper case, Hanwang technology, including company background, motive analysis, the specific means of earnings management and the use of specific non-recurring profit and loss account, and earnings management on the company after the economic consequences and the reaction of investors.The fifth part of this paper. The Conclusion and policy suggestion part, introducing the conclusion of the case analysis and puts forward corresponding Suggestions for relevant regulatory policies and Suggestions. There are three innovations in this paper. First, combing the results of previous studies based on the summary of the listed company "usual" non-recurring profit and loss accounts and earnings management tool. Second, the combination of advanced foreign regulatory experience, suggestions principles of disclosure should be used to define the main principles, principles and cited a combination approach. Third, by Hanwang Technology to reveal proof of this ugly losses of earnings management behavior more intuitive on the capital markets currently prevalent non-recurring earnings management, the use of actual cases to a more simple and intuitive introduction to the methods and means of its common this is different from most of our current research using empirical analysis shows that non-recurring earnings management through the data, more attention is "How to exist, how" rather than "if there are" problem, but also for investors to distinguish non-recurring gains and earnings management in order to provide a more specific case describes the image recognition method.As the study of non-recurring gains and earnings management issue has long been a topic of concern to the academic community in general, on the basis of previous views on the succession, it is difficult to form a new argument again; and due to lack of personal expertise on the existence of probable cause the article some defects, which will also be the power to constantly improve and expand the relevant expertise complement and knowledge.