Shandong Haihua By Assets Impairment Earnings Management Case Study

All along,the listed companies in our country are facing a rapidly changing market environment,the operating risk,financial risk will increase.Earnings management of listed companies has become the focus of attention of all sectors of society.As a result,the problem of earnings management of listed companies is gradually exposed,and the problem of earnings management has attracted the attention of all sectors of society,and has become an important field of modern economic and financial research.The use of asset depreciation to adjust the profit is one of the main means of earnings management of Listed Companies in China,excessive earnings management not only mislead the stakeholders’ investment decisions,but also affects the social resources allocation efficiency,harm the social security funds,affecting the authenticity and reliability of accounting information,the accounting information user damage the interests of.the Ministry of Finance issued the "accounting standards for Enterprises No.eighth-impairment of assets" in February 15,2006,most of the provisions of the long-term assets impairment provisions shall not be reversed,in large part to curb the earnings management behavior of enterprises.But accounting standards may not share,to a certain extent for the listed companies leave the space of earnings management.But also led to a listed company to seek other methods of earnings management,the more common is the use of inventory impairment,bad debts and other short-term assets impairment and reversal of earnings management.In this background,based on the analysis of domestic and foreign research and theoretical analysis of the related literature,Shandong Haihua Company as the research object,adopt the method of normative research method,qualitative index analysis method and case analysis method.First of all,the results of previous studies are analyzed,and the impact of asset impairment on earnings management is summarized.Secondly,this paper systematically expounds the theory of asset impairment and the specific methods and motives of earnings management,and analyzes the impact of asset impairment on Earnings Management under the new accounting standards.Again,choose more representative of the listed companies of Shandong Haihua Company as an example,combined with the financial data between 2008 to 2015 Shandong Haihua,analysis methods and motivation of earnings management of Shandong haihua.Research shows that Shandong Haihua the existence of earnings management,the main motivation is to avoid delisting and exaggerating losses,and in the next year turnaround.According to Shandong Haihua in recent eight years of financial statements,the provision for many times in recent years and study the reversal of impairment,analysis of Shandong Haihua Company provision and reversal of impairment of assets of Shandong Haihua Company Performance situation.Finally,from the listed company itself,the external environment and the law and other aspects of the phenomenon of earnings management through asset impairment of the corresponding recommendations.