Empirical Research On Impairment Of Assets Of Manufacturing From Profit Adjustment Point Of View

Accrued or reversed the provision for impairment loss of assets has been an important means to manipulate profit. In order to enhance the accounting information authenticity and safeguard the legal rights of accounting information users, Finance ministry has been issuing a series of policies to regulate the provision for impairment loss of assets. However, such as estimating recoverable amount still has to comply with the subjective judgment of the accountants. And the impairment loss of long-term assets can reversal when the assets were disposed.Whether the new accounting principles to a great extent solves the problem of accounting information distortion still controversial. Therefore, this paper selected the date of A-share boards of listed manufacturing enterprises in 2007-2014, using modified Jones mode to calculate the discretionary accruals, dividing the sample into five on the basis of ROE and discretionary accruals,to research the relationship between the impairment loss of assets and manipulation profit. Study found that:in different operating states, the relationship between the impairment loss and manipulation profit is not exactly identical. Specifically speaking, In respect to profit-making enterprises of manufacturing industry, There is a negative correlation between the impairment loss of assets and manipulation profit.and those enterprises more likely to use current assets impairment loss adjusting the profit. What’s more, turning losses enterprises, compared with the profit-making one, tend to use fixed assets impairment loss of assets to maximize earnings. Besides, to meager profit enterprises, just like others, there is also a negative correlation between the impairment loss and manipulation profit. Finally, with respect to loss-making enterprises, the relationship between the above two depend on whether those enterprises have "big bash" motivation.To sum up, the effort of new accounting principles against the earning management is not obvious. And the manipulation profit of managers is also driven by the different interest. In response to this this phenomenon, this paper will provide some conclusions and suggestions.