Listed Companies Use Asset Impairment To Conduct Research On Earnings Management Behavior

Earnings management has always been an important project of financial research,and we often see the application of earnings management in the financial statements of listed companies.Moderate earnings management is a legal behavior to modify the financial information.However,the excessive earnings management behavior will damage the authenticity of financial information and affect the healthy development of the capital market.To avoid this situation,current accounting standards have modified part of the impairment of assets: non-current asset impairment provision shall not be reversed after provisioning.Hope that companies using asset impairment for earnings management behavior has been curbed.However,the listed companies began to put the focus of earnings management on short-term assets,the use of bad debt preparation,inventory depreciation and other provision and transfer back to manipulate the surplus.In this paper,the qualitative analysis method and the case analysis method are used to study the earnings management of the listed companies using the impairment of assets by taking Zhejiang Jing Gong Science & Technology Co.,Ltd.as the research case.Firstly,the paper lists the relevant literature at home and abroad and the theoretical basis,combines the nine annual financial accounting information of Jing Gong Science in 2007 to 2015 after learning about the listed companies using impairment of assets for the status quo and the reasons of earnings management,analyze the effect of the provision and reversal of the impairment of assets on the earnings of the company.Research shows that the Jing Gong Science has the behavior of earnings management,the main motivation is to reverse the loss or exaggerate the loss,so as to avoid being delisted.Finally,in view of the listed company itself,the accounting standards for impairment of assets and the securities regulatory agencies,the paper puts forward some suggestions on how to restrain the listed companies to make use of asset impairment to carry out earnings management.