A Case Study Of Earnings Management Of Non-recurring Profit And Loss

The financial indicators of the firm are very important in attracting investment.In order to make financial indicators have a better performance in financial reporting,enterprises tend to use earnings management to beautify financial data.Although earnings management is to follow the accounting policy,and its own good and evil tendencies,but in China's unique delisting mechanism,some companies will carry out earnings management to achieve a specific purpose,which is suspected of malicious manipulation of profits.Many listed companies,especially the continuous loss of enterprises,in order to evade the Commission's special handling and delisting punishment,will tend to choose to use non-recurring gains and losses to carry out profit adjustment,is fancy non-recurring gains and losses inherent in the incident,Easy to manipulate.Depth analysis of the specific behavior of non-recurring profit and loss management,help investors to more thoroughly understand the disclosure of listed companies financial data to determine whether the enterprise is truly profitable,make the right investment decisions;also conducive to standardize the disclosure of listed companies,Optimize the Quality of Accounting Information in Capital Market.In this paper,XH company as a case,by analyzing the company in 2013-2015non-recurring gains and losses data and other accounting information,pointed out that XH company in 2013,2014 two years of continuous losses in the case of the risk of suspension of listing,has adopted The emergency disposal of non-current assets,received large amounts of government subsidies and unidentified revenue and other non-recurring profit and loss management of a series of common means,although this helped XH company in 2015 to turn around,to avoid the suspension of listing,But through the XH company's profitability in 2015 and operational capacity analysis found that the company is only a moment of financial statements,the real business situation has not improved,this behavior will give investors a good business situation in the illusion,Influence it to make the right decision.This article through the analysis of this case,the financial information users,accounting standards,as well as the regulatory authorities have come to the corresponding revelation.