The Case Study Of Earnings Management On Inventory Falling Price Reserves Of The M Company

In order to enable accounting information to reflect the real condition of an enterprise,the process of setting accounting standards fully consider the flexibility in the application of accounting standards and choice room for users of accounting rules,which also provides space for earnings management.The source of surplus management is to improve the quality of enterprise accounting information.But when excessive earning management is used by a lot of listed companies to maximize their own interests,excessive earnings management,to a great extent,misleads the investment decision-making of external stakeholders,affects the efficient allocation of capital market and endangers the safety of social capital.This article adopts the method of case study,by analyzing the earnings of listed M company in 2015,we find that M has carried out earnings management.This article is divided into five parts:the first part is the introduction,that introduces the research background and significance of this article,and from the motivation and means of earnings management,summarizes the research literature and research results of scholars at home and abroad.Earnings management is divided into accrued earnings management and real earnings management,this article,the research direction is for the accrued earnings management.The second part is the theoretical basis,this part firstly introduces the earnings management is produced in the background of the efficient market theory,asymmetric information theory and rational economic man theory,and makes a summary on the related concepts of earnings management,makes clear the definition of earnings management in this paper,at the same time corresponding meter measurement of earnings management is briefly reviewed.The third part is case description,this part firstly makes a brief analysis of industry background,and then introduces the basic situation of M company,and makes a brief analysis of the relevant situation of M company's provision for inventory depreciation,puts forward the possibility that M company has carried on Earnings Management.The fourth part is case analysis.First of all,by calculating and comparing the accrued profits of M company from the second quarter of 2015 to the second quarter of 2016,it is found that M company has conducted downward earnings management.On the basis of the analysis of the profit structure of M company,it is determined that M company mainly carries out earnings management by means of the provision for inventory depreciation.Finally,according to the influence of earnings management behavior on M company and the main matters of M company in the past year,the main motivation of M company's earnings management is as follows:equity allocation motivation,restricted stock circulation motivation.The fifth part is the corresponding countermeasures and suggestions.On the basis of the theoretical basis and case analysis,this part finds that the lack of accounting policies and disclosure policies is the root cause of the company's earnings management,for this reason,the part puts forward some corresponding suggestions to regulators and accounting standards makers:speeding up the reform of the stock issuing system,changing the status the listing is scarce resources;fully refining the information disclosure system,reducing earnings management space;increasing supervision and punishment,increasing the cost of earnings management;The accounting standard maker prudently gives the accounting judgment space and reduces the surplus management space.