Study On The Recognition Of Deferred Income Tax Assets From The Perspective Of Earnings Management

China implemented new corporate accounting standards in 2007,and the new accounting standards are in line with international accounting standards.Although the new standard has been greatly improved after implementation,there are still loopholes and deficiencies.The standard does not set strict requirements for the confirmation of deferred income tax assets.It only stipulates that the company should recognize deferred income tax assets within the limits of future taxable income.There is no clear definition of future taxable income.The amount needs the judgment of the company's management staff,which provides a convenient condition for the company's earnings management.LETV is the first GEM listed company to operate online video services in China.After the listing,the company has developed rapidly.The net profit of the company has increased from 1.3 million in 2010 to 2.1 million in 2015.The net profit has grown rapidly,but the total profit has not increased rapidly.This thesis takes LETV as an example to study the issue of deferred income tax assets in the perspective of earnings management.The study of the dissertation can be used to determine the profitability,asset quality,and operation efficiency of the company more accurately for financial statement information users to make a good decision.The thesis uses the case study method.The theoretical part elaborates the related basic theories of the meaning and motivation of earnings management,deferred income tax assets and income tax expenses.The case analysis section first introduced the basic situation of LETV and the confirmation of deferred income tax assets;secondly,analyzed the motives for LETV's confirmation of deferred income tax assets for earnings management and the reasons for its use of deferred income tax assets for earnings management,Conducting a profit forecasting analysis to determine whether the deferred income tax assets are reasonable and the impact of deferred income tax assets on the company's operating performance and financial indicators.Through research,it was found that LETV did not meet the requirements of the standard to confirm the conditions of deferred income tax assets,it still recognized a significant amount of deferred income tax assets to beautify the financial statements of the enterprise,which are suspected of using deferred income tax assets for earnings management.Finally,the dissertation combines the reasons why China's listed companies can use deferred income tax assets for earnings management,and puts forward suggestions to improve the relevant standards for deferred income tax matters,strengthen supervision and management by the regulatory authorities,and improve the financial staff's business capabilities and professional ethics.