A Case Study On Youngor Using Of Financial Assets For Earnings Management

Since 2007,Youngor have the implementation of brand clothing, real estate and financial investment business of diversified development strategy, and have a large number of shares of listed companies financial assets. For earnings management, Youngor will be a lot of financial assets at initial recognition is divided into financial assets available for sale. In recent years, Youngor financial investment accounts for the proportion of its operating profit is more and more big. In 2008, the financial crisis, Youngor brand clothing, real estate industry losses. In order to profit, Youngor large holdings of shares, financial assets available for sale financial assets sold to the year before last year will be included in the capital reserves into the fair value of the changes in the current profits, achieve the company’s net profit. In addition, Youngor has also used the financial assets management to smooth profits.This article first chapter focuses on the research background, significance elaborate, and on the use of domestic and foreign financial assets, earnings management literature was reviewed, and a brief description of the research methodology and research ideas. The second chapter tells the case story. First, an overview of Younger business conditions and the financial condition of the three aspects of the basic situation of the Younger a brief overview. Secondly, the Younger 2006-2013 financial asset management conducted a brief description, in order to elicit the problem cases in this paper, namely whether there is access to financial assets Younger earnings management, and how to manage earnings. In addition, to further lead the case, this paper will compare Youngor holding of two types of financial assets with other listed companies, the contrast was found in the use of financial assets Younger earnings management with relatively prominent. The third chapter is case studies. First, with regard to the provisions of accounting standards to analyze two types of financial assets, combined with the use of financial assets Younger actual earnings management, analysis of the financial assets of its assets and profits caused, and finally analyzed its smooth use of the financial asset management profit and earnings management behavior turnaround. The fourth chapter is case revelation. Separately from the angles of listed company itself, external users of financial statements, government oversight and accounting standards to draw inspiration in this paper cases.