| Quite a number of small and medium-sized enterprises had adjusted the profits artificially by earnings management, which results in fake tax payment and a decline of enterprise credit. To investigate the earnings management of small and medium-sized enterprises, the writer has done a research of the current situation among more than 50 enterprises in Dongguan by ways of face-to-face interview, questionnaire survey and consequence reflection.By interviews of accountant officer, certified tax agents, credit department manager of Dongguan branch in b.o.c and tax collector in Dongguan IRC, the writer focuses on a investigation of the current situation in earning management among more than 50 enterprises from 5 aspects such as financial condition, motive in profits management, manifestation, means and data survey. The results show that there is quite profits management in them leading in a low reliability in financial report. So the users of financial report should draw a final conclusion before a deep analysis of related information and a cautious judgement of the reliability in financial report and profits management. Profits management can be summarized as 3 categories, such as means of motive priority in accordance with upstream authorities which may reduce tax payments, ensure a steady profits and guarantee the corporate image; artificially adjustment in profits by minimization,stabilizing, zero profits even loss and inflated costs, hidden income, project cost, artificial cost.The research proves that besides artificially sma ll enterprises regulations, the small and medium- sized enterprises also apply a hidden and illegal profits management.With a reference of comprehensive analysis of questionnaire survey, the writer summarizes the underlying reasons after a research of profits management mot ive, manifestation and means, and puts forward the specific suggestions which may ensure a sound development of small and medium-sized enterprises. |
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