Study On Accounting Policy Choice And Earnings Management Behavior Of Appliance Manufacturing Industry

With the rapid development of China's economy as a whole,China's capital market has also gradually matured and improved.Under this background,academics have paid more and more attention to the researches on the selection of accounting policies and earnings management in enterprises.In recent years,the appliance manufacturing industry is facing industrial restructuring and transformation and upgrading,growth began to slow down,competition in the home appliance manufacturing enterprises gradually changed from price competition to enterprise innovation and product quality and service competition.Enterprises choose different accounting policies,accounting policies will make the appropriate adjustments.The research on accounting policy choice and earnings management behavior of home appliance manufacturing enterprises will deepen the connection between capital market and accounting information,improve the accounting system,and monitor real-time the corporate governance mechanism and capital market of China's home appliance manufacturing industry.In this paper,starting from an example,with specific data analysis.From the household appliances manufacturing accounting policy choice of earnings information management and manipulation and business management motivation,analyze the purpose of business stakeholders.From the choice and implementation of accounting policies,it analyzes how enterprises disclose earnings information so as to maximize their own interests.Discusses the pros and cons of earnings manipulation from the aspect of accounting standards and analyzes whether the appliance manufacturing enterprises should make use of the disclosure of earnings information for short-term purposes.First of all,this paper illustrates the purpose of the research and the significance and value of this study as well as the status quo of research at home and abroad,the research ideas and the main framework of this article as well as the shortcomings.Then,define the related concepts and explain the theoretical aspects.Then choose China's home appliance manufacturing accounting policy and earnings management between the content of key analysis.Twenty domestic appliance manufacturing companies listed in Shanghai and Shenzhen stock markets were chosen as research samples according to the accounting policy choices disclosed in their annual reports for the three years from 2014 to 2016.Based on the characteristics of the appliance manufacturing industry,Methods,provision for impairment of inventories,methods for depreciation of fixed assets,methods for amortization of intangible assets,provision for bad debts and methods for confirming the selling price of related-party transactions of the Company.In the part of case analysis,taking Gree Electric Company as an example,this part analyzes the financial status and operational capability of Gree Electric Appliance Co.,Ltd.,and studies the accounting policies of Gree Electric Company.Finally,based on the research,this paper puts forward the relevant suggestions and expounds the conclusion of the research.