Research On The Recognition Of Deferred Tax Assets And Earnings Management

Since 2007,China has implemented the new Accounting Standards, including IAS 18 Income Taxes, it requires the listed companies must adopt the accounting balance sheet liability method and introduce the deferred income tax assets and deferred income tax liabilities subjects. It essentially changed the income tax accounting method and be in line with international accounting standards. By refer to literature at home and abroad, foreign scholars have been going on for a long period of research in terms of deferred income tax assets and earnings management. but domestic scholars’ study in this respect is not enough. The implementation of new standards has been more than eight years, our country listed company for understanding and using of the new guidelines also gradually mature. Whether the earnings management behavior of listed companies in China have association with the deferred income tax assets. Thereby, This article will discuss two questions,our company’s earnings management behavior will cause the change of the deferred income tax assets or not and deferred income tax assets confirmation will bring the opportunity of earnings management to company management or not.This article will adopt the method combining the theoretical analysis and case analysis.Theoretical part, the article expounds the theory basis and confirmation principle of deferred income tax assets, the meaning and motivation of earnings management etc. Thereafter, the article using the theory of reasoning research the relevance of deferred income tax assets and earnings management in this part. The case analysis part studied the motivation and methods of earnings management of one listed company and the recognition and measurement of deferred income tax assets of this listed company.This article is divided into five parts. The first part is the introduction, to introduce writing background and the motivation. The second part is the theoretical basis of this study, mainly introduces the development of the income tax accounting in our country, the current income tax accounting method and theoretical basis and he meaning and motivation of earnings management etc. At the end of this part, preliminary analysis the movement of deferred income tax assets and earnings management by using descriptive statistical analysis method. The third part is the theoretical analysis. To explore the possibility of the existence of problems from the current accounting system. The fourth part is case analysis. The fifth part is the conclusion of this paper.