Research On Identification And Controlling The Earnings Management Of Sany Heavy Industry

In the current economic context, the function of the stock market is growing, the financial statement is not only the most direct financial basis of corporation, but also an important foundation for investors and other stakeholders to make decisions, It’s fairness and authenticity is directly related to the management of enterprises, investors,creditors and other interests of all parties, also related to the healthy development of the rational allocation of social resources and capital market, besides, the government’s tax revenues is very relevant in the corporate income. The accounting earnings is so important that the enterprise will try to adjust the surplus. The earnings management reduces the reliability of financial reporting information, seriously affected the optimal allocation of resources in the capital market, hinder the normal development of China stock market, damage the interests of investors, therefore, how to effectively identify and control earnings management is an important issue to be solved urgently at present.This paper stands in the regulator’s perspective, researches the earnings management of a typical case of Sany Heavy Industry with experience identification method, and summarizes the identification methods of surplus management, the earnings management behavior of a single enterprise is traceable, can be identified through certain methods, such as focus on related party transactions, the change of accounting estimates, big government subsidies and other non-recurring profit and loss, and so on. The earnings management not only mislead the investors’ decision-making, but also has a very bad effect on the development of the enterprise itself. this article put forward the corresponding management strategies in the conclusion, detailed accounting rules, strengthen supervision, let the enterprise has no chance to take, and called for the capital market regulator’s attention, through the policies and regulations to standardize enterprise earnings management behavior, promote the healthy development of capital market.