A Case Study On The Management Of Non Recurring Profit And Loss Of Southern Textile Shares

By 2015, China’s stock market, in the horror of investors, how to deal with the ever-changing market,become a big problem in front of us. In the past 30 years, However, with the rapid development of capital market, the contradiction between the capital market development speed and the same period can be more and more prominent. At the same time, the funds can not keep up with the pace of capital market development. In order to achieve the purpose of financing, enterprises do everything possible to gloss over the financial statements. Market downturn led to the decline in market economy, and thus lead to corporate financing difficulties. However, the development of enterprises must be financed, and the statement of earnings management has become a shortcut to the rapid financing of enterprises. This from the window to cover up the report forms, forming a vicious circle.Especially in 2008 the economic crisis is more serious, domestic and international demand of the textile industry declined rapidly, in order to increase revenue, rapidly expand but did not get much reward.In the domestic trouble and foreign invasion, although large shareholders trading company exempt debt related, but still can not reverse the situation, plus the internal structure is not perfect, poor internal control and executive greed, South Textile shares in the 2006-2010 inflated profits by means of earnings management for five years. But auditors are standard unqualified opinion,except 2011. such behaviour is nothing more than a tyrant.The study of Southern textile shares give the explanation of the causes and means of earnings management increase the motivation of earnings management, but the earnings management is only an expedient measure and can not fundamentally solve the predicament of management company, can not produce lasting positive impact. Finally,put forward measures of prevention of earnings management of Listed Companies in order to proposed improve the accountability system, the establishment of executives for statements of authenticity endorsement system, improve the firm hiring system, strict implementation of the auditor mandatory rotation system, put forward the part of the supervision of the privilege of the Commission, timely establishment of suspension system, and the establishment of investors "buyer pays" specific standards, to a certain extent better protect the rights and interests of investors. This article will have a certain reference value for the management of the listing Corporation’s earnings management and financial fraud behavior.